By design, almost every cryptocurrency was created to solve some market problem, improve payments, or in any other way affect our quality of life. There are also projects that serve something completely different. One of them is Binance Coin (BNB), which has been around since its inception to support cryptocurrency exchanges.
A brief history and the technical aspects of Binance Coin (BNB)
Like the exchange that Binance Coin (BNB) represents, the cryptocurrency is a relatively young project. It was created in 2017 for an ICO that aimed to raise funds just for the launch of the Binance exchange. The originator of the venture was Changpeng Zhao, also known on social media as “CZ”. He decided to create a token that would support his idea. The mintage in which BNB was created was 200 million, half of which was distributed through a ICO. The fundraising was successful and raised as much as $15 million. This allowed the launch of the base version of the exchange while it was still running. The token representing the Binance exchange was created based on the ERC20 standard, in the Ethereum ecosystem. In April 2019, Binance Coin transitioned to its own blockchain.
A very interesting feature of the cryptocurrency is that the Binance exchange regularly repurchases it from its buyers from the ICO process and burns it. This means that the currency is highly deflationary in nature, making its market supply constantly decrease. This is a factor that can significantly affect the valuation of the asset.
Owning a Binance Coin brings with it many benefits. For example, you can pay exchange transaction fees with it. In the first year of the token’s existence, its presence in the portfolio resulted in a reduction in the value of transactions by as much as 50%. This discount decreases by half every year until it disappears completely after five years. Binance Coin is also an opportunity to participate as a priority in testing new features of the exchange and influence decisions on the further development of the platform.
Price development of Binance Coin (BNB)
When Binance Coin (BNB) debuted on the market during its ICO fundraising, it cost $0.15. Since then, it has made a real price rally. BNB reached its first key All Time High, on January 11, 2018. At that time, it stood at $26.42. Such a jump indicates a very high rate of return, in a very short period of time. However, after less than a year and a half and a correction of up to 85%, BNB rose to the top again. This time, it took place on June 22, 2019. The price of one token reached $43.15. After another and equally deep correction, the price of BNB entered a very dynamic rally, making Binance Coin, in mid-February 2021, in the TOP3 of cryptocurrencies with the highest market capitalization, reaching then a price of almost $350.
Opportunities for Binance Coin (BNB)
Binance Coin (BNB) has contributed significantly to the rise of one of the most popular cryptocurrency exchanges in the world. You can read about Binance itself in the article titled “Where to Buy Cryptocurrencies (Exchanges)”. Using this coin offers a number of benefits, as well as a very high return on investment. It is hard to say whether Binance Coin can play a key role in the future of blockchain technology. However, it shows how widely and with what fantastic effect, cryptocurrencies can be applied. We think that its existence will in time become an inspiration for many projects of a similar nature.