BNB coin is the key asset of the largest crypto exchange in the world with an average daily turnover of $1.5B.
Binance launched its proprietary currency in July 2017 as a ERC20 token on the Ethereum blockchain and raised over $15M in the ICO. By April 2018, Binance ranked as the first crypto house globally (according to CoinMarketCap), wherease BNB revealed solid growth reaching the $30 benchmark and overall market capitalisation of over $4B in 2019.
Applications
Endemic to the Binance Chain, BNB enables transactions on the platform, acts as a means of fee payment on the Binance Exchange (with lucrative discounts), allows users to make in-store payments, serves as collateral for Nexo-based loans and more.
Bonuses on crypto trading
As for the perks on the parent exchange, BNB holders enjoy a substantial rebate. The discount shrinks over time, yet in the first year they are entitled to 50% off the fee followed by 25% off in the second year.
Burning and rate growth
To ensure stability and key inflation at bay, Binance has adopted a burning procedure aiming to destroy certain amounts of BNB every quarter based on the Binance Exchange trading volumes. That is until half of the BNB is burned leaving the remaining 100M coins in circulation. Naturally, with all relevant records on the blockchain. Burning entices heated demand and increased rates for the crypto in question.
What’s next?
Binance is now poised to build a decentralised exchange with BNB at the core. This opens up new opportunities to the coin holders aside from the traditional frills. Let’s keep an eye on Binance and its game-changing developments.
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