What Is Binance Coin?

The name Binance is formed from a combination of the words Binary & Finance. 

Changpeng Zhao (CZ), is the founder of both Binance Exchange and Binance Coin (BNB). The Binance exchange is by far the largest Cryptocurrency exchange in the world with a daily trading volume of over 34 billion US dollars. Binance was originally founded in China; however has since moved its main operations to both Japan and Taiwan. 

BNB was originally launched via an ICO (Initial Coin Offering) in July 2017, where it raised just $15 million. Since the 1st January 2021, Binance Coin has seen an astronomical price rise from just $38 up to an all-time high of $641.86 on the 1st May: 

What is Binance Coin

What is Binance Coin & How Does Binance Coin Work? 

Binance Coin is used to power the entire Binance ecosystem, its primary functions are to pay for fees including exchange, trading and other fees on the Binance exchange. Additionally, BNB can be used to access and invest in exclusive ICOs offered through the Binance Launchpad. 

Originally when Binance Coin was launched it was part of Ethereum’s ERC-20 platform; however since April 2019 it became a BEP2 token when it joined Binance’s mainnet. 

In addition to the above, BNB has many more applications including:  

  • Payment – customers can pay for goods and services using platforms like Crypto.com’s credit card. 
  • Travel Bookings – Hotel bookings can be paid for using BNB on travel services like Trip.io . 
  • Entertainment – BNB holders can purchase virtual land on Decentraland . 
  • Finance – Users can trade stocks on Naga using Binance Coin. 

What is Binance Coin Burning? 

As part of their original whitepaper, Binance have committed to burn a number of Binance Coins every quarter. Coin burn in relation to Cryptocurrency happens when the creators or owners of a Cryptocurrency send some of the tokens to an address which is no longer accessible as the private key has been intentionally lost or destroyed. 

In order to consistently burn BNB, Binance has committed to use 20% of its profits to buy back BNB before the burn. Binance will continue to burn BNB until the max supply reaches just 100,000,00 BNB. Most recently Binance completed their 15th quarterly burn of 1,099,888 BNB (roughly $595,314,380 equivalent). 

What is Binance Coin

Key Statistics 

Binance Coin (BNB) is currently ranked number 3 in terms of market capitalisation with a total market cap of over $99 billion.  

There is a total supply of 169,432,897 Binance Coins. 

Where Can You Buy Binance Coin? 

As Biance Coin is the native token of the Binance exchange it is only available on Binance and Kucoin. 

 

Binance and Kucoin are both major exchanges and offer a huge variety of cryptocurrencies. 

If you enjoyed our What Is Binance Coin Guide and are now interested in investing in Aave, have a look at our Best Crypto Exchanges page for more information.