Price BNB Price and Live Chart

Since the fee rebate decreases every year, the value of the BNB token is also expected to decrease over time. To combat this depreciation, Binance also destroys BNB tokens over time, reducing the total supply of BNB from 200 million to 100 million. Contracting the money supply in this way should counteract the effects of the decreasing discount.

According to the Binance whitepaper, exactly half of the maximum supply of BNB coins was allocated towards the initial coin offering (ICO) and public sale of the coin. The ICO was held in July 2017 shortly after the exchange launched, and saw Binance raise $15 million in funding, with BNB price at $0.10 during the ICO. Taking BNB price today, that represents an almost 4200X return on investment (ROI). Another 40% of the total supply, or around 80,000,000 BNB coins, was distributed among the founding members and team. Finally, the remaining 10% of the maximum supply was split among angel investors.

One of the biggest competitive advantages Binance has is its drive for development. While the company started only as a crypto exchange back in 2017, today, Binance has spread its services among numerous different spheres. According to the company website, its mission is to become the infrastructure services provider for the entire blockchain ecosystem.

BNB is an integral part of the successful functioning of many of the Binance sub-projects. Binance exchange launched in July 2017, but before the launch, the exchange needed to raise necessary funds to run the business. The Binance team, led by its current CEO Changpeng ‘CZ’ Zhao, conducted an initial coin offering to sell BNB tokens to interested investors. Fortunately, Binance has a good business model which incentivizes traders to continue using BNB to pay for their trading fees.

Binance is a Chinese company, originally started in Shanghai and now based in Malta. Its founder, Changpeng Zhao, is the former CTO of OKCoin, another prominent Chinese cryptocurrency exchange. While fee payment is the primary purpose of the BNB token, you can also use it to invest in certain ICOs that participate in Binance’s Launchpad program. Once the ICO is over, these new tokens will automatically list on Binance, creating a seamless marketplace between ICO and exchange. Liquidity is the amount and frequency with which assets move around the exchange. In order to quickly find a match and complete an order at a competitive price, there needs to be a lot of activity on the orderbook.

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If you want to know more about coin burns, and why BNBs are being permanently destroyed, check out What Is a Coin Burn?. The first mechanism consists of burning a portion of the tokens spent on transaction fees on the BNB Chain, and the second is its quarterly BNB burning events. Within the crypto industry, a coin burn is a deflationary mechanism that is used to permanently remove coins from circulation.

Binance Smart Chain

On April 30, 2024, Zhao was sentenced to four months in prison and fined $200 million for not complying with U.S. anti-money laundering laws. As of May 11, 2024, Binance is operational and remains a popular cryptocurrency exchange. While ERC-20 tokens rely on the proof-of-stake (PoS) consensus, which allows them to be extremely scalable, and allows for the creation of smart contracts.

1. Once you have successfully added your card, it will be listed on the payment page as a payment method, and you can select it when purchasing your BNB.
2. With the BNB ICO launch, Binance distributed 10% (20 million BNB) of the tokens, at $0.15 each, to so-called angel investors.
3. To the left of that button is a space to fill in the amount of money you wish to spend.
4. In your first year of membership on Binance, fees are discounted 50% when paid in BNB.
5. While you can still choose to pay your fees in the cryptocurrency you’re exchanging, Binance offers a rebate as an incentive to pay fees in BNB.

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Due to a large number of sell orders, the market becomes saturated,  leading to a massive fall in price. Binance Coin (BNB) has been one of the most profitable investments of the last 4 years in the cryptocurrency market, registering returns of over 450,000%. An investment of $1,000 during its Initial Coin Offering (ICO) in July 2017 would have multiplied to a massive $4.5 million as of May 2021, when the coin reached its current all-time high.

At this stage, you will have to back up the private keys to your wallet in the form of random words. Trust Wallet is only available currently as a mobile application on the Apple App Store and Google’s Play Store. Go ahead and download the app from your phone’s supported platform. These are just some of the few ways you can make use of your BNB tokens. More uses are discovered and added regularly, and this makes BNB even more valuable. Bennett is an editor at Coin Central and freelance technology writer specializing in blockchain, software development, and AI writing.

This may be the reason why Bitmex is generating more business in the current bear market. A typical exchange works as a market maker for buy and sell orders. It’s important to note that the exchange itself does not buy and sell your currency when you make an exchange. Instead, the exchange matches you with another user who is willing to buy your asset at the price your asking. This matching of buy/sell orders is the key function of an exchange.

The exchange swapped the ERC-20 BNB tokens to the BEP-2 tokens on the same day the mainnet went live. At the end of the token sale, all 100 million BNB historical cost concept: advantages and disadvantages tokens were sold off at an average of about $0.15, bringing in around $15 million. CoinCentral’s owners, writers, and/or guest post authors may or may not have a vested interest in any of the above projects and businesses. None of the content on CoinCentral is investment advice nor is it a replacement for advice from a certified financial planner. If Binance sees continued success on its current level, it will certainly implement more features and programs.

She’s widely recognized for her ability to grow technology products and gain user adoption. Zhao, He, and the Binance team have grown the company into one of the biggest exchanges in the world in a fairly short period. Binance has done a great job building an intuitive user interface without sacrificing the charts, graphs, and other information you need to make informed investment decisions. Trading is easy and only requires a few clicks to select the currency pair you’d like to trade and create the order.

It’s worth noting that despite BNB tokens existing in various versions, the total token supply is maintained across these platforms. Any transfers between the Binance Chain and the BSC cause a redemption and subsequent burning of an equal number of tokens. Even though the plan was to scrape off the discount rate after the fourth year, it seems the exchange has decided to keep it. Currently, all transaction fees paid using BNB on both the Spot and Margin markets are subject to a 25% discount, while those made in the futures market get a 10% discount.

Binance aims to bring cryptocurrency exchanges to the forefront of financial activity globally. The idea behind Binance’s name is to show this new paradigm in global finance — Binary Finance, or Binance. Binance Coin (BNB) is a utility token mostly useful within the Binance ecosystem. The token was launched in July 2017 to be used as a tool for crowdfunding in the Binance ICO.

There are many uses for Binance Coin, but let’s first start with how and why it was created. Binance burned a total of 1.94 million BNB, equivalent to $670.78 million. Airbnb began in 2008 when 2 designers who had space to share hosted 3 travelers looking for a place to stay. Now, millions of Hosts and guests have created free Airbnb accounts to enjoy each other’s unique view of the world. Measures like BEP-95 have upgraded the already deflationary tokenomics to make BNB even more deflationary.