Mar 30
Cryptocurrency Story — Binance Coin (BNB)
Most overseas coin exchanges have their own personal coins.
Today, I would like to talk about BNB coins, which have become 3,500 times more valuable in three years.
Let’s begin!
What is BNB?
BNB Coin is a coin issued by Binance, the world’s largest cryptocurrency exchange.
The total supply is 200 million, of which 100 million were released first through initial coin supply (ICO).
Initially, it was first released as a token called ERC-20 operated by Ethereum network, but now it has moved to the Binance chain by launching its own blockchain platform, Binance Chain.
The initial price was:
1ETH=2700BNB
1BTC=20000BNB
(It’s very cheap, isn’t it?😂)
However, as the first 100 million units were released through ICOs, they are regularly incinerated for the value of scarcity and currently have less than 100 million units.
Scarcity of BNB
When half of BNB is scheduled to be incinerated in the end, why was it created in the first place?
It has been issued for the purpose of being used within the Binance Exchange; however, BNB actually existed even before the Binance exchange started trading! The reason is because of the payment of fees on the Binance Exchange.
If you want to make a transaction on the Binance Exchange, of course you have to pay a usage fee, although the discount rate decreases over the years.
The discount for the first year is 50% free, so if you’re starting a coin for the first time, you’ll feel less pressure about the fee.
Since the fee can be paid in BNB, wouldn’t it be like killing two birds with one stone to the trader?
It can also be used for token sales hosted by Binance’s Launchpad and to vote for listing on the Binance Exchange!
In fact, the price of coins varies depending on the amount issued.
So the fact that Binance incinerates about half of BNB coins and finally leaves only half of them increases BNB’s value by allowing buyers to have scarcity value.
We looked into BNB Coin, a Binance coin that has grown rapidly today and is now number one. How was it?
If you have any questions or want coin-related information, please feel free to come to our community and let us know :)
See you in the next episode!
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