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Binance Coin (BNB) — Binance Exchange Token
The history of BNB begins with its creator, Changpeng Zhao. This Chinese programmer has gained vast experience in companies such as the Tokyo Stock Exchange, Bloomberg, Blockchain.info and even OKCoin. The BNB Coin cryptocurrency was released through an ICO that took place in July 2017. As a result, they raised $15 million.
Binance Coin was created as an ERC20 token and originally ran on the Ethereum blockchain. But in 2019, the coin "moved" to its own blockchain. The ERC-20 standard is still accepted by the Binance exchange.
On the Binance platform, BNB Coin performs three functions:
- Acts as a trading asset.
- Used to reduce commission.
- Suitable for paying for goods on platforms that accept Binance Coin.
Based on the Binance blockchain, there is a decentralized exchange Binance DEX, where you can trade tokens.
Features of Binance Coin
Binance Coin cryptocurrency is rightfully considered one of the most promising coins. And not in vain, because it has its own very significant advantages:
- When sending Binance Coin, there is an additional Memo field. Memo is the ID of the payment. This can be both long and short character sets. It is unique, and with its help the exchange determines the sender and the recipient.
- High liquidity — Binance Coin is traded in pairs with more than 400 coins, making it one of the most liquid coins;
- Decrease in supply — the quarterly “burning” of coins, which the Binance team has carried out according to the plan, has a positive effect on the growth of the price of Binance Coin in the long term;
- Good reputation — the exchange and its founder Changpeng Zhao have a very good reputation, and this is one of the important conditions for the success and longevity of any project;
- Ability to use to pay for services — in the fall of 2018, Binance wrote in its blog that the Binance Coin cryptocurrency is accepted at 150 sites.
Disadvantages of Binance Coin
A large concentration of coins in the hands of the founders — during the ICO, the organizers left 40% of the coins "for themselves", which creates the danger of manipulating the course for the company's personal purposes.
"Burning" BNB Coin
Like all coins, BNB Coin cryptocurrency is subject to inflation, but the creators took this point into account even at the stage of creating the WhitePaper. According to one of the points of the "white paper" every three months, the Binance exchange "sets aside" 20% of its income for the subsequent redemption of coins and their "burning". As a result, only 100 million BNB will remain, i.e. half of the originally issued volume.
After each "approach" of destroying coins, the price of Binance Coin increased every time, except for the onset of a serious "bear" market after the "hype" January 2018 and the "crypto freeze" in the summer of 2018.
Mine Binance Coin
You will not be able to mine BNB as the Binance blockchain uses the BFT (Byzantine Fault Tolerance) mechanism. It contains validators that retain full control over the issue and distribute it at their discretion, as well as check blocks.
Binance Coin Blockchain Speed
Our exchanger requires 1 block confirmation. This operation takes place in a few seconds.