Binance Coin (BNB) is the cryptocurrency generated by the Binance exchange. Its Binance Exchange processed $7.6 billion in cryptocurrency trades in the second quarter of 2022, making it the biggest cryptocurrency platform in the globe. The Binance Coin was formerly an ERC 20 token operating on the Ethereum blockchain, however it has subsequently migrated to the Binance blockchain as its native token. It debuted in the ICO market in July of 2017 and is limited to no more than 200,000,000 BNB coins. Ten percent, or twenty million BNB tokens, were distributed to star traders; forty percent, or eighty million tokens, were distributed to the core team; as well as the remainder fifty percent, or one hundred million coins, were distributed via the ICO.

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Binance, which launched in July 2017, has the highest daily trading volume of any cryptocurrency exchange in the world. Binance's mission is to make cryptocurrency transactions ubiquitous. Binance's name is meant to symbolize a shift in the world financial system toward more decentralized, algorithmic trading systems like Binary Finance, thus the term. Binance is the biggest cryptocurrency exchange in the world, and it has also unveiled a full suite of user-friendly features. Blockchain technology is at the heart of the Binance network's many initiatives, such as Binance Chain, Binance Smart Chain, Binance Academy, Trust Wallet, as well as Investigation. Several of Binance's side initiatives rely on BNB to work as intended.

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What Is Binance Coin Burning?

The ICO saw 100 million Binance coins made available, but there are now many less in circulation. Every three months, Binance takes a fifth of its quarterly earnings and burns'  or buys back and destroys a portion of the Binance Coins that it has on hand. These burning ceremonies have been routinely conducted by Binance. On April 15, 2021, Binance burnt 1,099,888 BNB, the same as $595,314,380 at the time in U.S. dollars. This is the greatest quarterly BNB burn for Binance in terms of U.S. dollars, and it marks the 15th quarter that Binance has burned BNB. There are now 169,432,937 BNB in circulation, down from 170,532,825.

What Makes BNB Unique?

When it comes to blockchain-based, decentralized networks, Binance stands out as one of a kind. There are a handful of nations where the firm is the dominant cryptocurrency exchange, but interest in their subsidiary companies is high too though. Binance's dedication to growth is a key differentiator in the cryptocurrency market. Binance expanded from its original 2017 focus as a cryptocurrency exchange to provide services in a wide variety of industries nowadays. The company's stated goal on its website is to "be the infrastructure node operator for the whole blockchain environment." In BNB, deflationary tokenomics have been enhanced by BEP-95 and other measures. Like the network burning a portion of the charges to even further decentralize, gas prices on BSC have dropped even more in the wake of the suggestion. It was based on Ethereum's widely-used EIP-1559. Binance was able to use this to avoid the protocol flaws that led to losses of over $200 million for Pancake Bunny and multiple hacks of Cream Finance. Customers keep coming back to Binance amid the hacks because of the exchange's inexpensive costs as well as the high number of potentially profitable joke currencies.

Binance Coin Uses and Supports

Founded in 2017, Binance is a cryptocurrency exchange built around a versatility token that offers traders reduced transaction cost. However, since that day, it has found widespread usage across a variety of platforms. You may use it to cover the costs of your trades on Binance.com, Binance DEX, as well as Binance Chain. It could be used to buy virtual goods at websites such as Crypto.com, Monetha, and HTC; to reserve hotel rooms on transportation booking websites such as TravelbyBit, Trip.io, as well as Travala.com; to play games of chance the same as digital card packages as well as jackpots; to pay for services such as BitTorrent, Canva, and Storm; or to get a loan from ETHLend or invest in stocks through Moeda. In addition, Binance Coins may be used to purchase shares in such initial coin offerings (ICOs) featured on the Binance Launchpad. Its Binance exchange is a hub for trading existing and emerging digital assets alike, and is often used to launch fresh cryptocurrencies. Numerous organizations have joined forces to promote the widespread use of the cryptocurrency coin. Uplive, Asia's most popular and elevated video streaming provider, has teamed up with BNB to offer its 20 million users the opportunity to purchase virtual presents using BNB coins. The portal, android application, and VISA debit card of Monaco's first cryptocurrency exchange all accept Binance Coin.

How Many BNB Are There In Circulation?

As of June 2022, 163,276,974.63 BNB coins are in circulation. As part of its quarterly supply management strategy, Binance burns 100,000,000 BNB, or 50% of the overall supply, to reduce the total supply to 50,000,000 BNB. The 16th quarterly burning was performed on July 18, 2021, and was equivalent to $390 million at the time of burning based on the cost of BNB. While it was a costly burn, the exchange lost approximately $600 million at the time's BNB pricing on April 16, 2021. According to the Binance whitepaper, half of the BNB token supply was allocated to the ICO and public sale. The ICO was conducted in July 2017, soon after the exchange started, and raised $15 million, with BNB pricing at $0.10. Today's BNB pricing indicates a 4200X ROI. The founding members and crew received another 40% of the entire supply, or 80,000,000 BNB coins. The remainder of 10% was distributed amongst individual traders.

The Bottomline

If you want to know what Binance Coin (BNB) is all about, you need to know that Binance is nothing just for businesses. It must be stressed that it is an organizational objective.

Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.