What is Binance Coin?
Binance Coin (BNB) is a cryptocurrency created by Binance, one of the largest cryptocurrency exchanges in the world. Binance Coin was launched in 2017 as an ERC-20 token on the Ethereum blockchain, but later migrated to Binance Chain, which is Binance's own blockchain.
Purpose and Functionality of Binance Coin
Binance Coin was created primarily as a utility token to be used on the Binance exchange platform. The main purpose of BNB was to provide users with reduced fees when trading on Binance. Users could choose to pay their trading fees with BNB instead of other cryptocurrencies or fiat currency, and they would receive a discount on the fee.
In addition to being used to pay for trading fees, Binance Coin has since evolved to have other use cases. For example, Binance Coin can be used to purchase virtual gifts on Binance's streaming platform, Binance Live. Binance Coin can also be used to participate in token sales on Binance Launchpad, Binance's platform for launching new tokens.
Binance Coin has also been integrated into other platforms and services beyond Binance. For example, some online merchants now accept Binance Coin as payment for goods and services. Additionally, Binance Coin can be used to pay for travel bookings and gift cards through various partners.
Supply and Value of Binance Coin
Binance Coin has a maximum supply of 170 million coins. As of May 2023, the circulating supply of Binance Coin is around 155 million coins. Binance has a program in place to periodically buy back and burn BNB coins, which is intended to reduce the total supply of Binance Coin over time.
Like many cryptocurrencies, the value of Binance Coin can fluctuate greatly over time. In its early days, Binance Coin was worth only a few cents, but it has since reached a peak value of over $680 in May 2021. As of May 2023, Binance Coin is trading around $500.
Binance Coin was created primarily as a utility token for Binance users, but has since expanded to have other use cases beyond the exchange. The value of Binance Coin has fluctuated greatly since its creation, but it remains one of the most valuable and widely used cryptocurrencies in the world.