Binance Coin

Binance Coin, also BNB, is a cryptocurrency owned, issued, and operated solely by the Binance Exchange platform. The main application of this coin is to appear as currency in exchange for making payments, investments, and other transactions. 

Its utility rose after its origin in 2017. It became a part of the largest cryptocurrency exchange platform. BNB served as a medium of exchange for maximum transactions for various purposes. However, in recent years, the exchange has tried to burn Binance coins to create a stable algorithm. 

Binance Coin is a popular cryptocurrency on the Binance Exchange platform. It empowers the BNB chain ecosystem. Earlier, BNB worked on the Ethereum network, but lately, it launched its blockchain technology. BNB Beacon Chain and BNB Smart Chain are the two blockchains. These ecosystems enable transactions to occur as fast as 1.4 transactions per second. 

The BNB coin is a crypto asset that has a similar role to a stock on the financial market. Traders buy and sell these coins, which causes their price to fluctuate on the coin chart. Individuals purchase and store these coins in their crypto (Binance) wallet. Therefore, as the need for these coins arises, they can quickly sell or use them for their purpose. Some firms offer transactions through BNB. Moreover, they could use it for entertainment, travel, and dining purposes. Besides, individuals aiming to withdraw these coins can do what is needed from the crypto ATM (Automated Teller Machine). 

At the launch in 2017, 200 million Binance coins were released through ICO (initial coin offering). These coins were further distributed to different investors. Almost 50% of BNB was used for marketing, and the rest (1/3rd) was for developing the crypto platform. Let us look at them:

• Angel Investors = 10% (20 million coins)
• Founders = 40% (80 million coins)
• Public = 50% (100 million coins)

However, there is a tradition of burning BNB coins in exchange. The platform uses one-fifth of the reserves (profits) to burn Binance coins quarterly. In 2021, almost 1 million BNBs were burnt. And this process will continue until it reaches 100 million BNB. Till 2022, there have been 15 successful destructions of Binance coins.

Although the foundation of Binance coin was in 2017, the first ICO happened on June 26 till July 3, 2017. It lasted for 11 days on the Binance exchange. Two hundred million tokens were supplied, which were later distributed. However, it does not entitle them to any profits on them. Nor does it represent any investment on the platform. At that time, BNB was released on the Ethereum (issued as ERC 20 token) ecosystem. The issue price on the BNB chart was 1 ETH, equal to 2700 BNB. 

Later, between 2019-2020, the exchange launched two blockchain technologies, Beacon Chain (BEP-2) and Binance Smart Chain (BEP 20). BEP 2 is also the native coin of the Binance chain. It was launched on April 18, 2019.  

To mine BNB, traders can use the Binance Pool app or website. However, there are various methods to perform mining. It includes cloud, pool, solo, or hardware mining. Miners can perform hardware mining (through ASIC mining or GPU setup on a computer) to mine BNB coins. Also, they can use software for the same purpose. Or else delegate work to pools or engage in this work. However, the process differs slightly. 

The miners should first mine any other crypto coin and convert it into the BNB. For example, individuals can log in to the Binance pool app and mine Ether coins. Later, they can convert to BNB. 

Let us look at the examples to comprehend the concept better.

Example #1

Suppose Kevin wants to buy some crypto coins or tokens from the exchange. As a part of his investment portfolio, he considers purchases from exchanges like Binance. He opened an account on the crypto platform and added some money to the wallet. Kevin bought 100 tokens using the same wallet at the BNB price. Later, he used the BNB coins to buy some plane tickets. Out of the rest, Kevin sold them at higher prices by analyzing the Binance coin chart.

Example #2

The streaming industry is poised for exponential growth, with the live-streaming market currently valued at $160.55 billion and projected to reach $247 billion by 2027. This surge in value has sparked significant interest among cryptocurrency holders, particularly those invested in Binance Coin and Polkadot. DeeStream, a Web3 streaming platform leveraging blockchain technology, has emerged as a gateway for crypto investors to enter the live-streaming market. Offering unique benefits and a decentralized governance model, DeeStream has attracted considerable attention from both BNB and Polkadot holders. With DeeStream's ongoing presale stages, crypto enthusiasts are eager to secure their stake in this transformative platform, recognizing its potential to revolutionize the streaming sector while addressing the limitations of traditional platforms like YouTube and Twitch.

Let us look at the pros and cons of Binance coin for a better understanding of these tokens: