An investment of $1,000 during its Initial Coin Offering (ICO) in July 2017 would have multiplied to a massive $4.5 million as of May 2021, when the coin reached its current all-time high. The token sale offered 100,000,000 units of BNB (50% of the total supply). The issue price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB (around 0.11 USD back then).
- You can either pay the trading fees using the assets you are trading, or you can pay for them with BNB.
- Not just that but methods such as using third-party brokers that accept credit and debit cards can be extremely pricey.
- In 2017, she joined forces with Changpeng Zhao, and together they created the largest crypto exchange globally — Binance.
- We will discuss more on BNB below, whereas BUSD is a stablecoin whose value is pegged to the US dollar currency.
About Binance Coin
However, this is down from a record of we are now accepting bitcoin more than 32.6 million daily transactions reached in December 2023.
It depends on your preferences, risk tolerance, outlook, and investing goals. It’s best to speak with a financial advisor to learn if BNB is appropriate for your portfolio. As of May 2024, the Binance Smart Chain processed as many as 3.5 million daily transactions, more than double Ethereum’s all-time high.
So far, the exchange has undertaken 16 coin burns resulting in the removal of 31,862,964 BNB tokens from circulation. The fewer coins there are in circulation, the higher their perceived value, which will increase their demand and consequently their price. Binance exchange launched in July 2017, but before the launch, the exchange needed to raise necessary funds to run the business. The Binance team, led by its current CEO Changpeng ‘CZ’ Zhao, conducted an initial coin offering to sell BNB tokens to interested investors. The token was launched in July 2017 to be used as a tool for crowdfunding in the Binance ICO.
How to Buy a BNB Token?
Ethereum did a similar thing during their 2014 token sale, but the difference is that with Ethereum, more coins are still getting mined (introduced into circulation) the best cloud migration approach software development even after the token sale. As the dedicated utility token of the Binance exchange, the most straightforward way to acquire BNB coins would be to purchase them through Binance. The original exchange supports the largest variety of trading pairs with BNB, and it also has the best trading rates for the coin.
Binance coin (BNB) is the exchange token of the Binance crypto exchange. It was launched originally on the Ethereum blockchain but later migrated to the Binance Smart Chain, now called BNB Chain.Holders of BNB with Binance accounts can access discounted fees on the exchange. That means demand for the token is linked to demand for the exchange’s services. Therefore, buying BNB can be seen as a bet on the success of the exchange, in a similar way to buying a share in a company, except that owning the token comes with no ownership rights in the exchange.
If this is your first time using Binance to buy crypto, you will be required to add a credit or debit card to your account. The tokens will be deposited into your Trust Wallet account as soon as the transaction is processed. Similar to Ethereum’s ERC-20, Binance Chain also has a token issuance and implementation standard code-named BEP-2. The exchange swapped the ERC-20 BNB tokens to the BEP-2 tokens on the same day the mainnet went live.
Binance Coin Burning
On July 18, 2021, it conducted its 16th quarterly burning, which was worth $390 million in BNB price at the time of burning. However, that was not the most expensive burn — on April 16, 2021, the exchange burned nearly $600 million worth, in BNB price at the time of burning. In the case of Binance, the crypto exchange began the program in late how to buy steemit 2017 and has so far burned over 38 million tokens via its quarterly burn to date. The crypto exchange has in mind to destroy up to 100 million BNB tokens through its quarterly burns, accounting for 50% of its circulating supply. This guide takes a deep dive into the world of Binance Coin (BNB), the native digital asset of the world’s leading cryptocurrency exchange Binance. We discuss its history, benefits, uses, how to buy and how to store the coin.
Now that you have acquired your BNB tokens, you may be looking for a safe place to store them. Normally, we would recommend storing all your long-term digital asset investments in a hardware wallet such as Trezor or Ledger for increased safety. There are several ways to buy BNB, but most of these are unofficial and sometimes risky.
There is an initial maximum supply of 200,000,000 BNB coins, of which 168,137,036 are currently in circulation as of September 2021. Therefore, if you trade a lot on Binance, you should consider getting BNB and using them to pay for your fees. Keep in mind that the deduction for trading fees follows a specific schedule, so make sure to check the current spot trading Fee Schedule. It’s also worth noting that the Binance Futures platform follows a slightly different Fee Schedule. One can also use BNB to invest in certain ICOs listed through Binance’s Launchpad program.
How to Buy Binance Coin
Later on, the company introduced its own blockchain, and the tokens started being issued from the Binance blockchain, secured by the Tendermint byzantine-fault-tolerant (BFT) consensus mechanism. Measures like BEP-95 have upgraded the already deflationary tokenomics to make BNB even more deflationary. Following the proposal, gas fees on Binance Smart Chain have become even lower, as the network burns a part of the fees to decentralize further. Since launching the BNB, the exchange has also benefited from increased investor interest in the coin. BNB went through a significant price increase at the beginning of 2021, which has put it on the map of enterprise investors.
A marketplace for cryptocurrencies where users can buy and sell coins. While ERC-20 tokens rely on the proof-of-stake (PoS) consensus, which allows them to be extremely scalable, and allows for the creation of smart contracts. Unlike PoS, the Binance blockchain does not support smart contract functionalities.