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What is Binance Coin (BNB)? What can Binance Coin be used for?

May 27, 2021 Henry84





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What is Binance Coin? Why is Binance Coin useful? What can BNB be used for?

BNB (Binance Coin) was issued during an ICO in the summer of 2017, prior to the launch of the cryptocurrency exchange. BNB is the coin of the main cryptocurrency exchange, Binance, created to support the exchange's ecosystem and to provide benefits to users. The tokens do not confer ownership rights, and their holders are not entitled to any profit share.

Initially, it was issued on Ethereum as an ERC-20 token, with a supply of 200 million. During the ICO, 100 million pieces were sold. The current supply is lower, as part of the exchange's profit is quarterly converted into BNB tokens, which are then burned. Thus, the respective amount exits circulation, making the supply more limited.

With the launch of Binance Chain in April 2019, ERC20 tokens were converted at a ratio of 1:1 into BEP2 tokens, which are the native tokens on Binance's own chain.