This is the official HackerNoon wiki for Binance Coin. As part of our coin price pages, this living wiki displays on
The Binance Coin (BNB) is the cryptocurrency coin that powers the BNB chain ecosystem. It serves as the utility token for the Binance cryptocurrency exchange. This means investors and cryptocurrency traders can use BNB to pay fees and carry out trades on Binance by using BNB.
History
The Binance coin BNB was created in July 2017 by Changpeng Zhao. An initial coin offering(ICO) was carried out in July 2017. BNB tokens were distributed between the general public, angel investors, and the founding team. During the ICO, the public sale was allocated 100 million BNB which was 50% of the available tokens. Angel investors were allocated 20 million BNB which was 10% and the founding team was allocated 80 million BNB which was the remaining 40% that they had available.
All the publically available BNB were sold during the ICO. The ICO made $15 million in Bitcoin and Ethereum during this time.
BNB was first on the market for $0.50 per BNB. This value increased to $25 within 27 days of the official launch. The BNB coin reached an all-time high of $690.59 per BNB in June 2019.
Biggest Claims to Fame
Since Binance is a platform for cryptocurrency exchange, its utility coin BNB is easier to use in everyday transactions like online purchases of things such as crypto credit card bills, online gift cards, travel, and more. Owning BNB also makes it easier to make transactions on Binance. It is also valuable to hold onto BNB as a form of cryptocurrency investment.
Holders of BNB receive significant discounts on trading fees on Binance. Holders of BNB get a discount coupon which reduces the charge on the charged fee. This helps to grow the community as many people buy BNB so they can have access to discounted rates.
BNB can be used on other cryptocurrency exchanges. Though it is a utility coin for Binance, BNB can be easily moved between different exchanges. Binance has made it easy for trade to happen. Since many cryptocurrency coins go through Binance there is a certain ease that comes with cryptocurrency users interacting and exchanging with and using the BNB coin.
Binance redeems 20% of the tokens each quarter using its burndown policy. Their burndown policy uses this 20% that is redeemed to permanently destroy BNB in order to decrease the supply of the cryptocurrency currently in the market.
Biggest Criticism
As one of the biggest cryptocurrency exchange markets available today, Binance has an amount of influence over the value of the cryptocurrency it exchanges.
As a relatively new cryptocurrency coin, the stability of the value of BNB is not guaranteed. The current performance of BNB may increase or reduce at any point. Even though it is associated with Binance, this association does not guarantee that the value of the coin will remain stable.
A decrease in the value of BNB will cause significant damage to Binance. As one of the biggest and most accessible cryptocurrency exchanges, a bad reputation will cause a ripple effect that will reach the common cryptocurrency users, whether or not they hold BNB.
Team
BNB was created by Chengpeng Zhao in July 2017. Chengpeng Zhao is the CEO and founder of Binance, the largest cryptocurrency exchange available in the decentralized finance market today.
This is the official HackerNoon wiki for Binance Coin. As part of our coin price pages, this living wiki displays on