Lets learn about the history, development, usefulness and some curious facts about Binance Coin backed by the Binance company.
Crypto exchanges are the most important part of the digital currency ecosystem, since they operate as a means to securely trade cryptocurrencies through digital platforms.
However, the rise of tokenization led to several of these companies launching their own tokens as a strategy to further promote their operations, while growing their ecosystem by enabling new lines to capture income and offer other services based on the use of such digital currencies.
In this new article we examine cryptocurrencies in depth, we review the history and evolution of Binance Coin, the digital currency launched by the Binance team, which is located within the group of 15 assets within this sector with largest market capitalization today.
Name: Binance Coin
Official name in CryptoMarkets: Binance Coin ( BNB )
Function: Currency for payments / Exchange mechanism
Creators: Binance Team
Responsible company: Binance
Release date: September 2017
Type of issue: Finite (176,406,561 BNB as of January 6, 2021)
Total current: More than 144,406,561 BNB (06/01/2021)
Token type: Started as an ERC-20 / Later a BEP2 (Native to the Binance network)
Network type: Open
History and Origin of Binance Coin
Binance Coin is launched and sponsored by Binance , the exchange that capitalizes the largest volume of cryptocurrency related operations worldwide.
The idea behind the creation of this digital currency is associated with the intention of the Binance team to facilitate cryptocurrency trade operations and strengthen its idea for the creation of a much broader ecosystem, which had its own currency serving as a payment option for products and services. It is also listed as one of the means to invest in pre-sale campaigns for new cryptocurrencies ( ICOs ) offered through the Binance Launchpad service .
According to roadmap information published on the exchange’s official website, Binance Coin appears as the fundamental asset for the Blockchain designed by the company, since it serves as a means for users to carry out operations through the network. It also provides utilities for commercial purposes and its price is governed by the free market, depending on supply and demand.
The BNB token is one of the two coins launched by Binance, the other coin is a stablecoin called Binance USD (BUSD) whose value would be associated with that of the US dollar.
Binance BnB Coin was Initially an ERC-20 token
Since the plans for the creation of Binance Coin were closely linked to the creation of its network and while the team was working on it, Binance Coin was launched as an ERC-20 token that would operate on the Ethereum network .
The token was offered in a pre-sale campaign ( ICO ) during the month of July 2017, and managed to capitalize around USD $ 15 million among private investors selling each BNB for USD $ 0.1. Unlike many other commercial proposals that were made under this modality, after commercializing some 20 million tokens, the project did officially go on the market and proved to be quite successful within the community, being precisely one of the digital currencies with the best growth in a very short period of time.
The money raised in this pre-sale campaign was used to further develop the operations of the exchange, boost the brand and support marketing efforts. This led to an expansion of the Binance ecosystem and improvements in trading activities, especially by integrating the possibility of accessing discounts when using the token to trade other digital currencies.
Binance Coin was launched in 2017 through an ICO offering 20 million coins for investors, 80 for various participation projects, and another 100 million for interested retail investors. The money raised through the ICO of BNB was injected into the exchange to develop and promote the brand as well as in marketing. A part of the investment, in addition, was also used to carry out important improvements in the trading platform of Binance.
Launch of Binance Chain
Subsequently, in April 2019, Binance finally announced the launch of Binance Chain, its own Blockchain network designed by the operating company, which would be directly used to promote trading activities as well as infrastructure for many other use cases sponsored by the company. and by the community concerned.
At that time, Binance began to migrate the BNB tokens that ran on Ethereum and exchanged them for BEP2 assets, a format used for native currencies of the new Blockchain. In this way, the interested parties sent their original funds to addresses specially authorized by the company and later the team would transform them to the new Bnb Token.
Since then, other aspects of usage have been enabled for the BNB token beyond the employees, among which the following stand out:
- Commission payments on trading activities within the exchange , capitalizing a 50% discount during the first year of operations.
- Use of the token within certain solutions for payments with fiat money, such as VISA cards .
- Use of digital currency as a payment mechanism for products and services on platforms associated with Binance.
About the token BNB
Regarding its commercial evolution, the cryptocurrency began operations in exchanges from the end of July 2017 after the conclusion of its ICO, trading at about USD $ 0.1 per unit at the time of launch.
The digital currency registers its first important peak between mid and late January 2018, reaching USD $ 20 per token, it gained more than 18,000% in just six months after launch. Already by mid-April 2019, it again exceeds this barrier and came close to $40 at the end of June of that same year.
Since then, its value has remained oscillating below USD $ 20 until August 2020, where it finally surpasses this resistance and headed again towards all-time-highs, by capitalizing almost USD $ 43 at the beginning of January of this year. It will possibly go on rising keeping up with the optimism (After the correction of May collapse) seen by the cryptocurrency ecosystem in general.
Milestones and highlights about BNB
BNB has certain interesting aspects to highlight such as:
- “There were” 200 million tokens: This applies because the Binance management team has been carrying out scheduled “burns” of tokens under its ownership, which seeks to significantly reduce the existing supply of BNB circulating in the market, in order to increase organically its value over time.
- It can be exchanged for all digital currencies: On the Binance trading platform , hand in hand with Bitcoin, Binance Coin is the only digital asset that can be exchanged for any of the currencies listed there. This is designed with the intention of the currency becoming the center of the financial ecosystem managed by the company.
- BNB payments to staff: According to information published in various job offers arranged by the company, the Binance team even uses the BNB token to pay its employees for services provided for the company. Some sources report that this is a way in which the company can enter into commercial agreements with workers in latitudes and jurisdictions where it does not have a direct presence.
Social media and website
Facebook: https://www.facebook.com/binance – Official account with more than 172,600 followers.
Youtube: https://www.youtube.com/binanceyoutube – Channel with more than 37,500 subscribers.
Instagram: https://www.instagram.com/binance/ More than 167 thousand followers.
Web page: https://binance.com/
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