Binance Coin (BNB) cryptocurrency review | Trader Reviews

12-11-2021

Binance Coin (BNB) is a token developed by the Binance crypto exchange based on Ethereum. An altcoin is used in the Binance Chain and Binance Smart Chain blockchains.

Year of issue 2017
Capitalization  $ 102 354 325 036
Issue volume 166 801 148
Token standard ERC-20 (BEP-2)

A brief history of BNB

To launch the altcoin, an ICO was held between June 26 and July 3, 2017. Initially, the cryptocurrency exchange issued a cryptocurrency of the ERC-20 standard, with a total issue of 200 million tokens. Later, the altcoin was moved to a separate blockchain. The token standard was then changed to BEP-2. This happened in 2019 when the exchange introduced the release of the Binance Chain. A parallel blockchain project, Binance Smart Chain (BSC), was launched in 2020. 

Token Purpose

BNB was originally created to reduce trading fees. The token allows customers of the Binance exchange to use the platform’s services at a discount. BNB owners also have access to the advanced features of the platform, which will be applied to the new decentralized crypto exchange. 

Now Binance Coin is used not only for exchange but also for payment:

  • airline and hotel reservations;
  • credit card purchases;
  • commissions on the exchange;
  • participation in Launchpad token sales.

BNB altcoin can also be used in trading. Many market players make money from the fluctuations of cryptocurrency. In addition, some investors keep the coins in their wallets in the hope that they will rise in value soon.  You can store tokens in your personal account on the Binance exchange. Traders also use Trust Wallet, which is considered one of the most convenient and secure systems designed for smartphones. 

Features of BNB 

The benefits of BNB are especially tangible for customers of the Binance cryptocurrency exchange, who receive discounts on transactions. Since the launch of BSC, the token has had new features. BNB in its native blockchain performs the same options as ETH in the Ethereum network. For example, these coins are needed to pay rewards from the DeFi-protocol, process transactions, and pay fees. The latter in the BSC network is lower than on the Ethereum blockchain. 

BNB cryptocurrency can be considered a deflationary asset. Binance cryptocurrency exchange periodically burns tokens to reduce their supply. This reduces the number of coins available for purchase, which leads to an increase in the exchange rate. The situation is complicated by the lack of production of a new issue. This can lead to a very limited number of tokens available over time. 

Binance Coin rates

Conclusion

Traders in their reviews note the usefulness of the BNB token and its demand. The disadvantages of Binance Coin can be attributed to the centralized management. The development of the BSC blockchain depends on the exchange itself. If this platform ceases to exist for any reason in the future, it will have a negative impact on the BNB token.

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