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Beginner’s Guide to BNB Coin: Token For the Binance Cryptocurrency Exchange

Anyone who is part of the cryptocurrency world is familiar with Binance, one of the most popular cryptocurrency trading platforms. The BNB token, also known as the Binance Coin, is the platform’s cryptocurrency. BNB was a key part of providing funding for Binance via the ICO, and it now serves numerous important functions. The BNB token keeps to the ERC20 token standard and runs on the Ethereum blockchain natively.

What Should You Know About Binance?


1 What Should You Know About Binance?2 BNB Coin Price3 What Is the BNB Burning?4 How Does BNB Burning Affect Price?5 What Functions Does BNB Serve?6 What Kind of Discount Do You Get for Paying Binance Fees with BNB?7 What Is Binance Chain, and What Role Does BNB Play in It?8 Conclusion9 Useful Links

Before you take a closer look at the BNB token, you need to have at least a basic understanding of the Binance platform. If you do not, you should know that this is among the most popular of all cryptocurrency exchanges. The exchange is relatively young, launching in the middle of 2017, but it already has a strongly positive reputation and is extremely popular. At the time of writing, the 24-hour volume for BNB was 1,472,557.47 and that of BTC was 176,076.88.

Binance is capable of processing as many as 1.4 million orders per second, keeping up with a growing demand, and has support for nearly all devices, including a web platform. This high processing rate is due to Binance’s proprietary trading engine that resolves the problems of other exchanges not being able to keep up with demand. Binance also stands out from competition with its high liquidity and low trading fees, even without taking the discount for using BNB into account.

BNB Coin Price

At the time of writing, the Binance Coin was valued at $14.010. Considering Binance lists its issue price at $0.1553, this represents an increase in value of 8,921.25 percent. Binance issuance occurred on July 8, 2017, so this dramatic rise has occurred in less than a year. Also at the time of writing, the market cap was $1,597,718,473 with a maximum supply of 194,972,068 BNB and a circulating supply of 114,041,290 BNB. When established, the total supply was 200 million BNB tokens.

What Is the BNB Burning?

One of the key parts of the BNB token is the plans for buying back the tokens and burning them. This process is outlined in the Binance white paper. For those who just want a quick summary, Binance will use 20 percent of the profits from every quarter to buy back and then burn BNB. It will continue this process until the supply of BNB is 50 percent of the original amount, with 100 million BNB remaining. Every buyback transaction conducted by Binance to burn BNB will be announced via the blockchain for transparency.

Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB

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