Binance Coin: what’s behind the cryptocurrency?
With the most successful cryptocurrency directly behind Bitcoin, Ethereum and Tether: what makes Binance Coin so successful? We’ll show you the background.
The cryptocurrency Binance Coin is the means of payment on the Binance crypto exchange. This means that transactions can be paid for more cheaply, other cryptocurrencies can be exchanged and non-tradable cryptos can be converted into tokens. Every quarter, a certain number of available tokens is redeemed until the lower limit of 100 million Binance Coins is reached.
BNB: cryptocurrency for services
Binance Coin (BNB) was developed in 2017 by the operators of the Binance crypto exchange. The trading platform was started at the same time. The founders launched BNB for use and financing. They used Ethereum and the blockchain for this and issued 200 million tokens. For this they received 15 million US dollars as part of the ICO (Initial Coin Offering). BNB are currently ranked fourth in the top ten.
After starting with Ethereum technology, which is available open source, the makers of BNB developed their own chain. The tokens can be used to pay for transactions on the trading platform. Anyone who uses the crypto currency for this receives discounts. This is also how Ethereum works with ether. This makes the platform more attractive for customers. There are different levels of perks, as reported by Bitcoin Suisse. Customers who hold more BNB get better conditions.
From trading token to means of payment
But that was just the beginning. The Binance Coins received more and more functions. You can now trade the tokens yourself on crypto exchanges. And with success: BNB is in fourth place in the rating, directly behind Bitcoin, Ethereum and Tether. BNB has thus firmly established itself in the crypto world. Because the tokens can do more than just pay for transactions. We introduce you to the most important function.
Have you ever heard of “dust” in connection with cryptocurrencies? The smallest units of cryptos are called “dust”. You don’t always have to buy whole coins (a Bitcoin currently costs around 40,000 euros). Instead, you get fractions of it. If these are too small, however, we speak of dust. You can usually no longer trade this crypto dust. With BNB, however, you can exchange your dust and still recycle it.
Cryptos in their own universe
The exchange of small amounts that cannot be traded into BNB is just one of the additional functions. The tokens are now also accepted outside the platform. You can use them to pay for services from some providers. This includes hotel bookings and flights or streaming music or games as well as financial products. You see, BNB has made the leap into everyday life.
The Binance Coins offer a number of functions. The special thing about it is that Binance is more than a platform. When it was founded, you could trade on it. You can still do that, but Binance now offers many more options. The founders have meanwhile developed further products. One of them is a connection to Ethereum to connect both platforms. Another is a lottery for token owners. There are also other innovations in development.
Conclusion: crypto with interesting features
Overall, BNB is an exciting crypto currency that is not only interesting for the use of Binance. It is also accepted as a means of payment and is therefore very versatile. In addition, new features will continue to be developed. She has been able to convince investors so far, as the placement directly behind the three large cryptos shows.
Sources: Bitcoin Suisse, own research
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