BNB (formerly called Binance Coin) is the official cryptocurrency of Binance, the world's largest cryptocurrency exchange by trading volume. It was launched in 2017 as a token on the Ethereum network (ERC-20 standard) and later migrated to the platform's own Binance Chain blockchain.
### 🔹 Basic information about $BNB:
- Full name: Binance Coin
- Code: BNB
- Release date: July 2017
Developer: Binance (founded by Changpeng Zhao "CZ")
- Coin type: Utility Token (a token with multiple uses within the Binance ecosystem)
- Blockchain: Currently running on BSC (Binance Smart Chain), a parallel network to Binance Chain that supports smart contracts.
### 🔹 Token Supply:
- Max issuance: 200 million BNB (but Binance performs periodic burns to reduce the supply).
Burning Mechanism: Binance burns a portion of its profits to buy and destroy BNB, reducing the supply and supporting the price.
- Current Total Supply: ~$153M BNB (as of 2024).
### 🔹 BNB's main uses:
1. Reduced trading fees on Binance:
BNB can be used to pay trading fees on the platform with a discount of up to 25%.
2. Payment for services:
- Used to book flight tickets via TravelbyBit, and pay in some stores.
3. Running DApps on BSC:
- BNB is the native currency for running decentralized applications (DApps) on Binance Smart Chain such as PancakeSwap.
4. Participation in Initial Coin Offerings (IEOs):
Many new projects on Binance Launchpad require BNB to participate.
5. Trading and investment:
- Included in trading pairs with Bitcoin, USDT, and others.
### 🔹 BNB Features:
✅ Support for the large Binance platform (the largest crypto exchange in the world).
✅ Multiple uses (fees, investment, smart contracts).
✅ Periodic burning reduces supply and supports long-term value.
✅ Low fees and high speed on BSC compared to Ethereum.
### 🔹 Risks of investing in BNB:
⚠ Binance Centralization: Its value depends on the success of the platform and may be affected by regulatory issues.
⚠ Competing with other networks like Ethereum and Solana.
⚠ Market volatility like any other cryptocurrency.
### 🔹 BNB Future:
Binance is developing Web3 and DeFi via BSC.
- BNB may be used in payments and decentralized financial services.
The burning policy continues to reduce supply and increase scarcity.
📌 Note: BNB is considered a relatively more stable coin compared to meme coins like SHIB or DOGE, but it remains vulnerable to market volatility.