Cryptocurrency Category: Tokens
What is BNB?
BNB, or Binance Coin, is a cryptocurrency created by Binance.
It has several use cases:
You can use it to pay for trading fees on Binance;
It can be used in token sales hosted on Binance Launchpad;
More and more vendors are accepting it as a payment method;
And soon, it will be used to power Binance’s upcoming Decentralized Exchange;
So where did it start?
Binance Coin was launched in an Initial Coin Offering (or ICO) from June 26th to July 3rd, 2017, 11 days before Binance Exchange opened for trading.
The issue price was 1 ETH for 2,700 BNB, or 1 BTC for 20,000 BNB — so you can see how it’s grown since then!
It was issued as an ERC-20 token, running on the Ethereum network, with a total supply of 200 million coins. 100 million were offered in the ICO.
But did you know? Half of the total BNB in existence will eventually be destroyed! Check out our video on coin burns to find out why.
So why use BNB
We’ve already mentioned many of BNB’s use cases: let’s take a look at how it helps with trading fees.
You pay a trading fee for every trade you make on Binance.
You can either pay those fees using the assets you’re trading, or you can pay with BNB to get a discount!
That discount will be reduced every year until Binance’s fifth year.
Year 1: 50% discount
Year 2: 25% discount
Year 3: 12% discount
Year 4: 6.75% discount
Year 5: no discount
But BNB still has a lot more in store for the future.
Stay tuned for more news about upcoming features!