🤔⭐💫💯🎉 *What is the BNB cryptocurrency project?*
Binance Coin, symbolized as BNB, is a native digital currency of the Binance cryptocurrency trading platform that was created on the Ethereum blockchain using the ERC20 standard. Binance issued a maximum of 200 million BNB. The coin was launched in July 2017, through an initial coin offering (ICO) that allocated 20 million BNB for angel investors, 80 million for project contributors, and the remaining 100 million for various individuals who participated in the ICO. The funds raised from the sale of BNB were used to develop the Binance platform and branding and marketing. A percentage of the investment was also spent on adding necessary upgrades to the Binance cryptocurrency trading platform.
💡 *Why was BNB created?*
BNB was created to empower the Binance cryptocurrency platform and enhance its operations to create a sustainable ecosystem. The coin can be used for multiple purposes including paying listing fees, exchange fees, trading fees, or any other fees that users may incur on the platform. In the first year, Binance offered a trading discount of 50%, which will decrease by half every following year with the discount ending in the fifth year. The coin can also be used for IEO investments listed in Binance's Launchpad section. These new coins will then be listed on the Binance cryptocurrency trading platform, providing them with a fully-featured trading market.
💻 *How does Binance Coin work?*
BNB is built on the Ethereum blockchain according to the ERC20 standard where it can store and retain value. The BNB cryptocurrency cannot be mined as it was pre-mined and distributed through the ICO. BNB is used for discounted trading on the Binance trading platform. The discount rate started at 50% in the first year, but it is scheduled to be halved every year. By the fifth year, there will be no discount affecting the value of BNB. To combat depreciation, Binance has taken to buying back its digital currencies and burning them to reduce supply. The Binance cryptocurrency trading platform plans to eliminate half of the circulating BNB.
🎉 *What are the benefits of Binance Coin?*
1️⃣ *Fast Transactions*: If you use BNB for trading on Binance, you will be able to access the platform's matching engine, which can support up to 1.4 million orders every second. You can always find the trade you want, and using BNB makes it faster and more reliable.
2️⃣ *Security*: Binance already has millions of cryptocurrency users and traders who rely on the platform and trust its security and protection features. Binance uses a multi-cluster, multi-tier system framework and a Secure Asset Fund for Users (SAFU) to keep funds safe.
3️⃣ *Trading Discounts*: BNB offers a 50% discount on trading fees.
4️⃣ *Participation in ICOs / IEOs*: Binance Launchpad also hosts new token sales where BNB can be used to purchase a stake in a new upcoming cryptocurrency for trading on the platform. Previously, many of these new digital currencies were added to the Binance platform.
