Binance Coin Wiki ▷ What is NBB? Crypto currency & more!
Since its opening in July 2017, Binance has quickly become the world's largest crypto currency exchange. Did you know that Binance has its own crypto currency called BNB Coin? We will show you all the details of NBB Coin and explain how NBB Coins are used.
What you need to know about Binance
Before you get to the ins and outs of the NBB coin, there are a few basic aspects you need to know about the Binance Exchange. Binance is the world's largest crypto currency exchange and is a favourite among crypto currency investors. However, unlike Coinbase and many other exchanges, Binance does not currently support regular currency deposits. Instead, it is a pure crypto-exchange.
Over five million crypto-currency investors use Binance. The exchange can process around 1.4 million orders per second. At present, the Binance exchange processes around USD 1.2 billion in trading volume daily.
At the end of April 2018 it was reported that Binance was more profitable than Deutsche Bank. Between January and March 2018, the stock market managed to generate a breathtaking $200 million in profits.
How is Binance monetized? Every time a Binance customer trades a crypto currency or makes a withdrawal, Binance charges you a small fee. With millions of customers this adds up.
The interesting thing is that Binance actually charges one of the lowest fees of any crypto currency exchange. In addition, fees can be significantly reduced by using NBB-Coins.
What is the BNB Coin?
The NBB-Coin is a digital token issued by the Binance Exchange. The token is actually based on the Ethereum block chain and is therefore an ERC20 token. This means that NBB-Coins can be stored in popular Ethereum-Wallets such as MyEtherWallet.
Unlike crypto currencies such as Bitcoin, the NBB coin is actually a utility token. This means that the coin can be used on a company's platform, in this case Binance.
How is the NBB Coin used?
It is no secret that crypto currency exchanges make a lot of money by charging fees. Fees are usually charged when depositing money into an exchange, trading or withdrawing money from a wallet.
The good news for Binance customers is that they receive a discount of up to 85% on all fees. Every time a fee is paid, you have the option of paying with the Binance coin instead. In this way, you can automatically benefit from the discounts offered by NBB Coin users.
#1 How can you save on fees by using NBB-Coins?
Binance launched a new discount programme in July 2018. The first and easiest way to get a discount on your Binance fees is to pay them directly with NBB-Coin. You can pay NBB fees automatically with NBB-Coins by going to your account area and activating the option 'Using NBB to pay fees'.
Binance discounts decrease over time:
- 1st year: 25% discount.
- 2nd year: 25% discount.
- 3rd year: 12.5% discount.
- 4th year: 6.75% discount.
- 5th year: no discount.
This means that in the first year when you use NBB coins to pay fees, you receive a 25% discount.
Binance Coin & The VIP Program
The Binance VIP programme has only been active since July 2018. This gives exchange users the opportunity to receive a discount of up to 85% on trading fees. How does the programme work?
There are two criteria that determine your VIP level on the Binance exchange. The first is your NBB coin balance. The second is the amount of trading volume you have traded in the last 30 days. To qualify for a higher VIP level, you must meet both criteria for the VIP level.
From the VIP consideration above you can see that a discount of 80% on the manufacturer fees and 60% on the participation fees is possible
(However, it is very unlikely to convert 150,000 Bitcoin in trading volume within 30 days. Besides, 11,000 NBB coins are quite expensive. The BNB coin is currently at $11.93 per coin and to buy 11,000 of them you have to pay $131,230)
With the Binance VIP programme, you can still take advantage of the 25% fee discount by using your NBB Coins to pay fees. Both discounts are stacked on top of each other. In this way, you can achieve a maximum discount of 85%.
#2 The Binance Community Coin of the Month Competition
As Binance is the largest crypto stock exchange in the world, it is widely regarded as the holy grail of stock exchange quotations. Almost every crypto currency that has ever been listed on Binance has experienced a sharp rise in price. This is why ICO founders try to get their coins listed on the stock exchange. In June 2018, Binance introduced the "Community Coin of the Month" competition accordingly.
How does the Binance Coin of the Month competition work?
This function is no longer active at the moment, but should you come back online it works as follows:
First you must nominate your crypto currency for the binance reconciliation. Unfortunately, only members of the core team of a coin can apply.
If your crypto currency has been successfully nominated for a vote, you can go to the voting page Binance Coin Of The Month and cast your vote. The rules of the game are as follows:
- The coin with the most votes will be listed at Binance.
- All votes must be taken within the specified time limit (usually four days).
- Voters can only cast their votes once.
- Several candidates can be elected. The cost of the vote is 0.1 NBB coin per candidate.
- A voter receives his votes multiplied by the number of NBB coins he owns (up to a maximum multiple of 500). This means that if an investor wants to vote for "cryptoX Coin" and has a balance of 300 NBB-Coins, he gives 300 votes for the coins. Essentially, the more NBB coins you have, the more voting rights you have.
- Decimal NBB-coins are always rounded down. This means that if you had a 2.9 NBB coin, you would only receive 2 voting rights.
#3 Buying and selling crypto currencies with the NBB coin
The third way to use NBB Coins is through trading.
Binance offers only four different trading pairs and the NBB coin is one of them. The other three trading pairs available on the exchange are
Over 75 different crypto currencies can be traded with NBB coins. These are actually more crypto-currencies than most exchanges offer.
#4 Participation in token sales with LaunchPad
The fourth and final way for users to use NBB coins is via the LaunchPad product from Binance. This allows crypto-currency projects to raise additional funds by selling their tokens to investors.
If there are many investment opportunities through LaunchPad, this means that the demand for binance coins should increase.
What is the BNB Coin Burn?
The fee discounts for the use of Binance-Coins fall annually. This means that technically speaking, the NBB coin should lose value as the fee discounts shrink. However, this only applies if the coin supply remains the same.
To combat this, Binance has committed to spend 20% of its profits each quarter to buy back NBB coins and destroy them forever. This will continue until they have bought back 50% of all Binance coins (100 million).
This means that after each NBB coin brand, the supply of coins decreases and this mechanism should support the price of the coin. The last coin burning took place on 18 July 2018. Normally, the price of NBB coins increases before a coin burning starts. This makes it an important event observed by every binance coin holder.
The exchange has already established itself as the largest crypto currency exchange in the world. But who exactly is behind this phenomenal growth? There is no doubt that the top team at Binance is exceptionally talented. For example, its chief architect James Hofbauer co-founded BijieTech and gained extensive experience in Silicon Valley in Big Data analysis. But the star and captain of the Binance ship is undoubtedly CEO Changpeng Zhao.
Although we are extremely impressed with the Binance team and their list of advisors (including NEO CEO Da Hongfei), we decided to focus on Mr. Zhao due to space constraints.
CEO & founder - Changpeng Zhao
Changpeng's entrepreneurial path has its roots in his childhood. As a teenager he moved with his family from China to Canada. Money in the family was exceptionally scarce and the family had to fight every day to make ends meet.
What has Changpeng done? During the day Mr. Zhao worked at McDonald's and at night he worked at a gas station. These teenage years shaped Mr. Zhao forever and his legendary entrepreneurial drive and determination can be traced back to spinning burgers at McDonald's.
Mr. Zhao took education very seriously: he studied computer science at McGill University. This is where his passion for financial markets grew. After graduating in 2001, Changpeng followed his passion and took a position as Head of Tradebook Futures at Bloomberg. There is no doubt that working at Bloomberg was a pretty solid career option.
After four years, Mr. Zhao decided to establish Fusion systems. This company developed financial trading solutions.
Changpeng discovered that he had a fondness for poker, which led him to learn about Bitcoin.
Mr. Zhao then traded in his business at Fusion Systems for the crypto currency industry. He even worked as Chief Developer at Blockchain.info before taking over the role of CTO at OKCoin. At OKCoin, Zhao learned how to perform a crypto currency trade. He then founded Binance.
The future of the Binance Coin
Binance CEO Changpeng Zhao has already publicly expressed some of his thoughts on the future of the stock market. Since Binance is a centralized exchange, Mr. Zhao is keen to transform Binance into a decentralized exchange.
How are fees for the new decentralized Binance exchange paid? We bet that it will be done by using NBB-Coins.
Binance has also recognised that the crypto-currency area is mature, that fund managers can play an important role in generating returns for crypto investors. Binance has already launched a fund and is seeking to work with other fund managers who have experience in managing pools of assets in excess of $100 million.
Binance has already established a"Community Influence" fund. This project is also known as Binance Labs and is a $1 billion fund dedicated exclusively to supporting crypto and block chain startups. The funds in this incubator are of course on NBB-Coin basis.
The use of NBB coins is even increasing. The coin will play a central role in crypto start-up financing and crypto fund management. If this is taken into account in addition to the regular NBB coin burns, a new decentralized stock exchange and the potential for Binance LaunchPad, the future of the NBB coin seems very promising.
The NBB ICO
The Binance ICO took place on 14 July 2017. 100 million BNB coins were sold at a price of only 10 cents each. Although Binance Coins are currently trading for about half of their all-time high of $24.46, it has still rewarded ICO investors with over 100x returns.
Should you invest in NBB coins?
- NBB-Coin has four compelling use cases: reduced trading fees, coin release reconciliations on the exchange, trading use and participation in LaunchPad fundraising opportunities.
- 20% of the quarterly profit of the exchange is used to buy back NBB coins. These are then destroyed forever in a NBB coin incineration. This reduction in supply should increase the price of the coin if demand remains constant.
- It is planned that the NBB coins will be used even more in the future. For example, in the new decentralised stock exchange that Binance is building.
- Crypto currency exchanges are currently one of the most profitable companies in the world. You can use your NBB coins personally to save money on the exchange.
- Binance creates its own block chain to ensure that foreign exchange transactions become even more secure. When this is completed, the NBB coin will be moved into this new block chain and will be one of the most secure crypto currencies in the world. This should have a positive effect on the price of coins.
- The main use of the coins is to reduce fees. However, the fee savings fall to zero in the fifth year. This means that in 10 years the main purpose of the coins could be completely obsolete.
- NBB "coin incinerations" will not take place forever. Binance has only committed itself to buy back and destroy 100 million NBB coins. The question is, what happens when all coin destruction is completed? If the demand for NBB-Coins cannot support the price, then the price will have to fall.
- Although Binance is an extremely popular exchange at the moment, its success has shown that new crypto currency exchanges come out of nowhere. New competition will come onto the market and could become more popular than Binance.
How can you buy NBB coins?
Crypto currency exchanges are one of the most profitable companies in the world. With NBB Coin you invest in the crypto currency of the world's largest crypto exchange.
There are currently many useful ways to use NBB coins and there will be more in the future.
What can happen if the prices for crypto currencies rise? New investors are attracted to the market. What exchange are these new investors likely to use? Most likely Binance. This stream of new investors is likely to come across NBB coins and see the benefits of the coin. This demand should significantly benefit the NBB coin price.
The Bitcoin-News.one team is very excited about the future of NBB Coin.