Sat. Jun 22nd, 2024

The cryptocurrency with the BNB ticker became successful mostly due to the fact that it was created by the developers of Binance crypto exchange. Unlike many other altcoins, Binance Coin could be used on one of the most popular crypto exchanges in the world immediately after its creation, which led it to success. Because of this, the Binance cryptocurrency quickly began to grow in price and in 4 years from the moment of its creation it is thousand times more valuable. Simultaneously with the increase in value, the list of possible application scenarios has also expanded.

BNB creation history 

Binance Coin was one of the first internal tokens to empower traders, in 2017 most altcoins had other purposes. Often, developers used to pick a problem, describe how they would solve it using the blockchain, and then go to the ICO and simply collect the money. At that time, it was enough to mention cryptocurrency blockchain to attract attention.

Changpeng Zhao took a different approach. Instead of solving abstract problems, he decided to create a cryptocurrency that would become a source of additional benefits for traders working on the Binance crypto exchange. The future has shown that his idea has worked 100%. Zhao was not going to solve the problem of poverty in underdeveloped countries with the help of BNB, nor was he going to compete with payment systems. Instead, he offered traders a discount on trading fees if they held BNB tokens. This turned out to be enough, BNB was bought, held, used for commission discounts.

A total of 200 million coins were issued, half of which remained in the ownership of the team and business angels (80/20 ratio). Another half of tokens were put into turnaround. Today, the Binance Coin cryptocurrency has gone beyond the limits of an ordinary internal exchanges cryptocurrency. It is one of the key elements of the Binance ecosystem, BNB tokens are used to access all Binance products.

BNB is so popular, among many other factors, due to the performance of the Binance crypto exchange. Binance holds the leadership in terms of trading turnover. In addition, the developers of the cryptocurrency have expanded the list of possible applications of tokens. There is also a category of holders, who bet on long-term growth and consider Binance Coin to be an analogue of the company shares.

How to obtain Binance Coin?

Classic mining options are not provided. You can’t build a farm with several ASICs or GPUs and mine BNB cryptocurrency. Although there are other ways to work with this altcoin: The easiest way is to buy the coin on the exchange. The vast majority of the trading turnover is on the Binance exchange, also BNB tokens are traded on FTX, Gate io, KuCoin, Bithumb, Coinbase, etc. However, it is true that the volumes are paltry on these exchanges, so there is no point in leaving Binance.. 

Binance has a separate section dedicated to this granimator. BNB is traded on par with Bitcoin and dozens of altcoins. There is no lack of liquidity, so even large orders are completed very quickly when working at market price.

Binance coin application scenarios

At the start, the main incentive to buy and hold BNB was a solid discount on commissions. In the first year the trading commission could be reduced by 50%, from the 5th year this discount is zeroed, but the Binance exchange extended the discount of 25% until the middle of 2022 to celebrate the 4-year anniversary of the exchange.

 Other Binance coin use cases:

  • Trading and earning on coin rate fluctuations; 
  • This is a highly liquid asset, there is no problem with volatility;
  • Long term investment;
  • Despite the current quotes, the coin has the potential for further growth; 
  • Payment for goods and services online. 

There is already a number of projects that allow, for example, booking hotels and flights using BNB instead of fiat currency.

According to the same scheme, you can use the altcoin for:

  • purchases of virtual items in games;
  • purchasing gift cards, certificates;
  • Issuing loans and earning interest; 
  • Participation in lotteries, BNB can be used to buy a lottery ticket; 
  • Launching smart contracts; 
  • Paying Transaction Fees on Binance Blockchains; 
  • Participation in charity through Binance Charity. 

Participation in Binance Liquid Swap – earning by providing liquidity. In a simplified way, the scheme can be represented as follows: the owner of BNB tokens freezes them to provide liquidity, for which they receive a certain share of the commission paid by other traders. After unfreezing their share of cryptocurrency, they receive it and a certain income. Participation in token seals held through Binance Launchpad. There are already several dozens of projects that have successfully launched from this platform.

Сценариев масса, в будущем могут появиться новые варианты применения Бинанс коин. Но и текущих направлений достаточно для поддержания спроса на монету. 

There are a lot of scenarios already, in the future there may be new options for using Binance Coin. But the current options are enough to keep high demand for the coin.

By the way, if you don’t have a BNB wallet yet, then follow the link, here you can easily create a new wallet and start storing your coins there.

Buyback program by Binance

Some companies are constantly buying back their own shares. They do this, among other things, to increase the value of their securities. Binance operates according to the same logic, the intention to regularly “burn” some of the coins was reported in the White Paper, since then the developers have not departed from this idea. Binance spends 20% of its profits on a quarterly basis to buy back BNB tokens. These coins are then “burnt”, meaning no one will be able to access them in the future.

Developers will carry out this program until 50% of all issued coins are gone. As a result, 100 million BNB tokens will remain on the market. In reality there will be somewhat less of them, since access to some of the wallets will be lost by users. The number of destroyed tokens at a time depends on the rate of the crypt and on the profit of Binance itself. For example, in the first time such a procedure was performed, 986,000 BNB were burnt, and in the 12th token burn, 3.477438 million coins were already destroyed.

Announcement of this event is made in advance. A link to the corresponding transaction is also published, you can check that the coins have actually been burnt. Neither developers nor ordinary crypto-enthusiasts will be able to access these coins.

Pros and cons of BNB

Начнем с преимуществ этой крипты:

Let’s start with pros of this cryptocurrency:

  • A team of well-known developers;
  • Tons of application scenarios;
  • Discounts on commissions on the largest crypto exchange in the world; 
  • Two blockchains, one of which supports smart contracts; 
  • Very fast transactions;
  • Due to the “burning” of BNB, their value will grow in the future; 
  • BNB is one of the central elements of the developed Binance ecosystem.

There are also some cons, but it is hardly worth calling them critical:

  • BNB is firmly tied to Binance. If something happens to the exchange, then Binance Coin will collapse too; 
  • There are risks associated with regulation. China and the U.S. can significantly affect the crypto exchange, and therefore cryptocurrency;
  • Fee discounts decrease over time, which reduces the attractiveness of the crypto. 
  • Speculative component. Speculators create excessive volatility, which does not benefit the crypto;

Two of the four disadvantages can be attributed to almost any cryptocurrency. There are no critical vulnerabilities in BNB.

Binance coin prospects

Binance Coin cryptocurrency has already gone beyond a service token with a narrow specialization. Today, BNB is the core of the Binance ecosystem, which is what makes this coin so popular among investors and traders. The future of the crypto does not depend on Binance itself, but rather on what will happen to the crypto market as a whole. For their part, the developers have already implemented most of what they have planned. There is a platform for launching new projects, there are 2 blockchains with smart contracts support, other services have been launched. Unless crypto winter comes, BNB may well update its historical highs.

The logic is very simple: 

  • More and more projects which use this altcoin appear;
  • The amount of BNB tokens is limited;
  • The number of coins regularly decreases due to  burning of some tokens;
  • With increasing demand and limited supply, the growth of any asset is guaranteed.

Problems may begin only with the decline of interest in crypto in general or aggressive actions against Binance from the U.S., China and other states. Both scenarios look unlikely for now.


Binances cryptocurrency remains one of the best altcoins. A few years after the launch, it can be said that Changpeng Zhao’s plan has definitely worked. At first, he attracted traders and investors with large commission discounts, and then expanded the functionality of BNB and made it the basis of the Binance ecosystem. As a result, the internal Binance token has become not only an object of interest for traders, but also a good investment tool. Demand for BNB is not decreasing, so there is a possibility of further growth of this coin in the future.

By admin