What is BNB (BNB)?
BNB (BNB), previously also known as Binance Coin (BNB), is a cryptocurrency coin created and issued by the cryptocurrency exchange Binance. Initially created on the Ethereum blockchain as an ERC-20 token in July 2017, BNB was migrated over to BNB Smart Chain in February 2019 and became the native coin of the Binance Chain.
BNB can be used to pay for fees when trading on Binance, and usually at a discounted rate. Due to the primary utility, BNB has seen massive growth in interest throughout the years . Several rounds of token burn events have appreciated BNB price and pushed it up as one of the top-10 cryptocurrencies by market capitalization.
What is Binance?
Binance is the cryptocurrency exchange founded by Changpeng Zhao and He Yi in July 2017. Binance started with an Initial Coin Offering (ICO) and has since grown into one of the largest global cryptocurrency exchanges, both in terms of volume traded and market share by web traffic. The Binance exchange is separated into the Spot market, Futures market, as well as the decentralized exchange, Binance DEX.
What can you use BNB for?
BNB was initially created as part of the Binance exchange through its ICO. In its whitepaper, Binance states that BNB was designed to be used to pay discounted fees on the Binance platform and also function as the native token powering the Binance Chain.
In addition to the initial use cases, BNB has added other cases both on and outside of the Binance platforms. Here’s an overview of BNB use cases:
Reduced Trading Fees - When trading fees on Binance are paid using BNB, users are entitled to a 25% discount in fees.
Binance Account Tier - Users with account balances in BNB and 30 days accumulated trading volume above certain thresholds are given VIP tiers with additional fee discounts and perks.
Dust Conversion - Users can convert non-tradeable amounts of various cryptocurrencies called dust in their Binance account into BNB.
