On November 19 the price dropped to $531 but then recovered to go back to $639. Just like other assets, the BNB token couldn’t maintain a high price level for a long time, and after one week the price started to decline. On October 28 the price started to grow from $448 and reached $650 by November 8, missing its all-time high just by a little bit. In October 2021, when most of the altcoins were going bullish, the BNB coin was also gaining value. For example, in the first quarterly burn of 2022 over 1.8 billion BNB tokens were burned.
There is a formula based on BNB price and the total number of blocks so far validated in the chain. But most of the burning is done on a quarterly basis. The tokens are burnt all the time, or precisely, a certain part of the transaction is burnt whenever a new block is validated. The total supply of the BNB token is 200 million, and more tokens can not be minted. For example, first-year users of the Binance exchange can benefit from 50% off the fees. For paying fees with BNB the users get discounts, the size of which depends on the time spent using BNB for the transaction fees. Users can pay the trading fee, exchange fee, listing fee, etc. Anyone who has BNB tokens can take a part in the IEO, thus provoking the demand for the Binance coin.Īs a cryptocurrency, BNB is used to be a trading asset and also to be used to reduce fees. The exchange leads the initial sale of tokens by those projects. The system is more centralized than Ethereum, though it’s faster and cheaper.īinance also launched its own start-up Binance Launchpad, which publishes numerous projects looking for investors. The Binance Smart Chain utilizes a Proof-of-Stake Consensus mechanism. According to the plan, only half of the initially issued volume will remain. To regulate it, every three months the company puts 20% of its income aside for the subsequent redemption of coins and their burning. The project team considered that the BNB token will be the object of inflation while creating the White Paper. 50% of the money went to advertising and brand promotion, 35% was allocated for platform development, modernization and security, and the remaining 15% was left for the reserve fund. ICO helped to raise $15 million with investments coming mainly from contributors from China.
The ICO had terms according to which the 50% of the tokens were distributed among the investors, the team got 40%, and the venture investors received 10%. Initially, the BNB token was released under the ERC-20 standard and was not available for mining, but on Apthe mainnet of the Binance Smart Chain was launched and all the tokens were moved there in 5 days. The coin was released in June 2017 during the Initial Coin Offering, which had the goal of attracting investors to the upcoming Binance Exchange launch. The entire ecosystem is designed in a way to support a variety of utilities like trading fees, exchanges, fees, listings, etc. By May 2020 the token became the fourth largest one by market capitalization. It is used to pay fees on the exchange and trade in over 50 cryptocurrency pairs.
Binance Coin is a native token of the Binance exchange.
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