🔥 Binance Coin Wiki - BNB rate, cryptocurrency & more!
Since opening in July 2017, Binance has quickly grown to be the largest Cryptocurrency exchange the world developed. Did you know that Binance has its own cryptocurrency called BNB Coin? We will show you all the details about the BNB Coin and explain how BNB Coins are used.
What you need to know about Binance!
Before getting into the ins and outs of BNB coin, there are a few basic points that you need to know about the Binance Exchange need to know. Binance is the world's largest cryptocurrency exchange and is a favorite among cryptocurrency investors. In contrast to Coinbase and many other exchanges, however, Binance does not currently support regular currency deposits. Instead, it is a pure crypto exchange.
Over five million cryptocurrency investors use Binance. The exchange can process around 1,4 million orders per second. As of this writing, the Binance exchange processes around $ 1,2 billion in trading volume every day.
In late April 2018 it was reported that Binance was more profitable than Deutsche Bank. Between January and March 2018, the exchange managed to generate a staggering $ 200 million in profits.
How is Binance monetized? Every time a Binance customer trades a cryptocurrency or make a withdrawal, Binance will charge you a small fee. With millions of customers, that adds up.
The interesting thing here is that Binance actually charges one of the lowest fees of any cryptocurrency exchange. In addition, fees can be reduced significantly by using BNB coins.
What is the BNB Coin?
The BNB-Coin is a digital token that is issued by the Binance exchange. The token is actually based on the Ethereum blockchain and is therefore an ERC20 token. This means that BNB coins are in popular Ethereum wallets like MyEtherWallet can be kept.
In contrast to Cryptocurrencies like bitcoin the BNB-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 BNB coin used?
It's no secret that cryptocurrency exchanges make a lot of money by charging fees. Fees are usually charged when depositing into an exchange, trading or withdrawing to a wallet.
The good news for Binance customers is that they can get up to 85% off all fees. Every time a fee is paid, you have the option to pay with the Binance coin instead. In this way you can automatically use the discounts of the BNB coin users.
1. How can you save fees by using BNB-Coins?
Binance started a new discount program in July 2018. The first and easiest way to get a discount on your Binance fees is to pay them directly with BNB coin. You can automatically pay BNB fees with BNB coins by going over your account area and activating the 'Using BNB to pay fees' option.
Binance discounts decrease over time:
- 1 year: 25% discount.
- 2 year: 25% discount.
- 3 year: 12,5% discount.
- 4 year: 6,75% discount.
- 5 year: no discount.
This means that for the first year you will get a 25% discount when you use BNB Coins to pay fees.
Binance Coin & The VIP Program
The Binance VIP program has only been active since July 2018. This gives the exchange users the opportunity to receive a discount of up to 85% on the trading fees. How does the program work?
There are two criteria that determine your VIP level on the Binance exchange. The first is your BNB coin balance. The second is the amount of trading volume that you have turned over in the last 30 days. To qualify for a higher VIP level, you must meet both criteria for the VIP level.
From the above VIP analysis, you can see that a discount of 80% on the manufacturer fees and 60% on the participant fees is possible
(However, it is very unlikely that you will convert 30 Bitcoin in 150.000 days. Also, 11.000 BNB coins are quite expensive. The Binance coin is currently at $ 11,93 per coin and to buy 11.000 of them you need $ 131.230 numbers).
With the Binance VIP program, you can still take advantage of the 25% fee discount by using your BNB coins to pay fees. Both discounts are stacked on top of each other. This way you can get a maximum discount of 85%.
2. The Binance Community Coin of the Month competition
Since Binance is the largest crypto exchange in the world, it is widely considered to be the holy grail of listings. Almost every Cryptocurrencyever listed on Binance has seen a sharp rise in price. For this reason, ICO founders are trying to get their coins public. In June 2018, Binance introduced the "Community Coin of the Month" competition.
How does the Binance Coin of the Month competition work?
Unfortunately, this function is no longer active at the moment, but if you come back online it will work as follows:
First, you need to nominate your cryptocurrency for the Binance vote. Unfortunately, only members of the core team of a coin can apply.
If your cryptocurrency has been successfully nominated for a vote, you can go to the Binance Coin Of The Month voting page and cast your vote. The rules of the game are as follows:
- The coin with the most votes is listed on Binance.
- All votes must be made within the specified period (usually four days).
- Voters can only cast their votes once.
- Several candidates can be elected. The Voting costs are 0,1 BNB coins per candidate.
- A voter receives their votes multiplied by the number of BNB coins they own (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 BNB coins, he casts 300 votes for the coins. Essentially, the more BNB coins you have, the more voting rights you have.
- Decimal BNB coins are always rounded down. That means if you had a 2,9 BNB coin you would only get 2 voting rights.
3. Buying and selling cryptocurrencies with the BNB Coin
The third way to use BNB Coins is through trading.
Binance only offers four different trading pairs and the BNB-Coin is one of them. The other three trading pairs available on the exchange are:
Over 75 different cryptocurrencies can be traded with BNB coins. These are actually more cryptocurrencies than most exchanges even offer.
4. Participation in the token sale with LaunchPad
The fourth and final way users can use BNB Coins is through Binance's LaunchPad product. This enables cryptocurrency projects to raise additional funds by selling their tokens to investors.
If there are many investment opportunities through LaunchPad, it means that the demand for Binance Coins should increase.
What is the BNB Coin Burn?
The fee discounts for using Binance Coins fall annually. This means that the BNB coin should technically depreciate in value as fee discounts shrink. However, this only applies if the coin supply remains the same.
To combat this, Binance has pledged to spend 20% of its profits every quarter to buy back BNB coins and destroy them forever. This happens until they have bought back 50% of all Binance coins (100 million).
This means that after every BNB coin fire, the coin supply decreases and this mechanism should support the price of the coin. The last coin burning took place on July 18, 2018. Usually the price of BNB coins increases before a coin burn begins. This makes it an important event to be watched by every Binance coin holder.
The stock market has already proven to be the largest Cryptocurrency exchange established in the world. But who exactly is behind this phenomenal growth? There is no doubt that Binance's top team are exceptionally talented. For example, her chief architect, James Hofbauer, co-founded BijieTech and gained extensive experience in Big Data analysis in Silicon Valley. However, the star and captain of the Binance ship is undoubtedly CEO Changpeng Zhao.
Although we are extremely impressed with the Binance team and their lists of advisers (including NEO CEO Da Hongfei), we decided to focus on Mr. Zhao for reasons of space.
CEO & Founder - Changpeng Zhao
Changpeng's entrepreneurial path has its roots back in childhood. As a teenager, he moved to Canada from China with his family. The family's money was exceptionally tight and the family struggled every day to make ends meet.
What did Changpeng do? Mr. Zhao worked at McDonald's during the day and at a gas station at night. These teenage years shaped Mr. Zhao forever and his legendary entrepreneurial drive and determination can be traced back to turning burgers at McDonald's.
Mr. Zhao took education very seriously: he studied computer science at McGill University. Here 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's no doubt that working at Bloomberg was a pretty solid career option.
After four years, Mr. Zhao decided to found Fusion systems. This company developed financial trading solutions. Changpeng discovered that he had a penchant for poker, which led him to learn about Bitcoin. Mr. Zhao then acted in his business at Fusion Systems for the cryptocurrency industry. He even worked as the chief developer at Blockchain.info before taking on the role of CTO at OKCoin. At OKCoin, Zhao learned how to get one Cryptocurrency trade performs. Then he founded Binance.
The future of the Binance coin
Binance CEO Changpeng Zhao has already publicly voiced some of his thoughts on the future of the stock market. Since Binance is a centralized exchange, Mr. Zhao is keen to get Binance in a decentralized exchange to transform.
How are fees for the new decentralized Binance exchange paid? We bet it will be done through the use of BNB coins.
Binance has also recognized that the cryptocurrency space is ripe, that fund managers can play an important role in generating returns for crypto investors. Binance already has launched a fund and seeks collaboration with other fund managers who have experience managing pools of assets in excess of $ 100 million.
Binance already has a fund "Community influenceThis project is also known as Binance Labs and is a $ 1 billion fund that is used exclusively to support crypto and blockchain startups. The funds in this incubator are of course on a BNB coin basis.
The use of BNB coins is even increasing. The coin will play a central role in crypto startup funding and crypto fund management. If this is taken into account alongside the regular BNB coin burns, a new decentralized exchange and the potential for Binance LaunchPad, then the future of the BNB coin looks very promising.
The BNB ICO
The Binance ICO took place on July 14, 2017. 100 million BNB coins were sold at a price of just 10 cents each. Although Binance Coins are currently trading for around half of their all-time high of $ 24,46, it has still rewarded ICO investors with over 100x returns.
Should you invest in BNB coins?
- The BNB-Coin has four compelling use cases: discounted trading fees, coin release voting on the exchange, trading use and participation in LaunchPad fundraising opportunities.
- 20% of the exchange's quarterly profit will be used to buy back BNB coins. These are then destroyed forever in a BNB coin burn. This reduction in supply should increase the price of the coin if demand remains constant.
- It is planned that the BNB-Coins will be used even more in the future. For example in the new decentralized exchange that Binance is building.
- Cryptocurrency exchanges are one of the most profitable companies in the world right now. You can use your BNB coins in person to save money on the exchange.
- Binance is creating its own blockchain to ensure that forex transactions are even more secure. When this is complete, the BNB coin will be moved to this new blockchain and will be one of the most secure cryptocurrencies in the world. This should have a positive effect on the coin price.
- The main use of the coins is to lower fees. However, the fee savings drop to zero in the fifth year. This means that in 10 years the main purpose of the coin could be completely obsolete.
- BNB "coin burnings" will not happen forever. Binance has only committed to buy back and destroy 100 million BNB coins. The question is, what happens when all coin destructions are complete? If the demand for BNB coins cannot support the price, then the price will have to go down.
- Although Binance is an extremely popular exchange right now, its success has shown that new cryptocurrency exchanges are coming out of nowhere. New competition will come out and could become more popular than Binance.
How can you buy BNB coins?
Conclusion: is the Binance Coin worth it?
Cryptocurrency exchanges are one of the most profitable companies in the world. With BNB Coin invest in the cryptocurrency the world's largest crypto exchange. There are currently many useful ways to use BNB coins and there will be more in the future.
What can happen if cryptocurrency prices go up? New investors are won for the market. Which exchange are these new investors likely to use? Most likely Binance. This stream of new investors is likely to come across BNB coins and see the benefits of the coin. This demand should clearly benefit the BNB coin price.
Bitcoin-News.one Team is very excited about the future of the BNB Coin.