Binance Coin (BNB) are tokens of the Binance exchange, the owners of which are entitled to discounts and access to premium functionality on this site. That is, this is a kind of marketing technique to attract attention to the exchange.
Binance Coin (BNB) is a digital coin issued as an additional tool for carrying out activities within the exchange. BNB runs natively on the Ethereum blockchain and follows the ERC20 token standard. The token emission is limited to a total volume of 200 million. Binance plans to use a portion of the profits each quarter to buy back and burn BNB until half of the total supply of BNB coins created is destroyed.
Currently, the most prominent use case for BNB remains paying exchange trading fees. Binance offers both a standard 0.1 percent fee for transactions and a 0.05 percent fee if paid in local currency equivalent. For BNB tokens, you can purchase and exchange pairs of more than 2 hundred different tokens on the exchange. When BNB is used to pay fees, there is a system of significant discounts: 1st year: 50%, 2nd year: 25%, etc. Every year spent on the exchange reduces the user's discount by half.
In the future, Binance plans to create a decentralized exchange with expanded functionality, where BNB will be used as one of the key underlying assets. In March of this year, the Binance team announced the creation of the Binance Chain blockchain service, which should solve the problems of scalability and high commission fees. In addition, work has been completed on other components that will make up the Binance ecosystem: Binance Labs (a technology incubator for blockchain projects), Binance Info (an information service). In this new format, BNB will become the “fuel” for the entire system, and its value will increase significantly. In the updated platform, BNB will be used to conduct transactions and pay all exchange commissions.
All announced changes contribute to the active growth of the popularity of the coin among traders on the Binance platform.
The initial cost of the Binance Coin offer was $0.1. But already at the end of the first quarter, the cryptocurrency entered the TOP 20 of the world ranking.
At the time of writing, BNB is trading at $14.23, the market capitalization at the time of writing was $1,618,792,182, and this brought Binance Coin to the TOP 10 of the world ranking.
The process of burning BNB tokens results in a constant decrease in their number and, accordingly, increases their cost.. At the end of the first quarter, 986 thousand BNB tokens were withdrawn from use, a public record was made of this in the blockchain.
Also, the growing popularity of the platform and the growth of the user audience contributes to an increase in demand for BNB. All these factors make it possible to talk about the long-term prospects of owning BNB tokens.
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