ELI5 What is Binance Coin (BNB)?

ELI5 What is Binance Coin (BNB)?

Binance Coin was designed as the official currency to settle fees and other transactions within the Binance ecosystem.

Since it is an Ethereum ERC20 token, it can be traded at any Ethereum-compatible exchange.

Because of Binance’s popularity, BNB became a crypto asset on its own, being traded in high volumes even outside its intended environment.

BNB is currently traded at LBank, Exrates, P2PB2B, Trade Satoshi among other exchages.

Mineable? If so how is it mined?

Binance Coin is a non-mineable cryptocurrency.

In fact it’s an Ethereum-based token and most BNB reserves are held by Binance itself.

BNB Burn Events

Binance holds quarterly burn events where BNB tokens are removed from circulation.

BNB tokens are burned proportionately to Binance’s profits.

Token burning reduces BNB supply, naturally driving the prices up.

It is an incentive mechanism designed to share company profits with users via a decentralized token.

Although not a mining or staking mechanism, it is how BNB drives increasing value to investors.

Maximum Circulating Coins

Total circulating BNB tokens is limited to 200 million BNB

History

BNB was launched in a 2017 ICO, 11 days before Binance exchange.

Binance tokens are, therefore, older than the exchange itself!

The initial price was set a 20k BNB per Bitcoin.

Links

Official Website

Block Explorer Link

What is Binance Coin?

How to Buy, Sell, and Trade Binance Coin (BNB)?

How to Open a Binance Account?

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