BNB (BNB) currently has a price of €349.84 and is up 0.92% over the last 24 hours. The cryptocurrency is ranked 4 with a market cap of €53.8B. Over the last 24 hours, it saw €1.9B of trading volume. The token has a circulating supply of 153.9M tokens out of a total supply of 153.9M tokens.
BNB is the native token of the BNB Chain, a blockchain network closely related to Binance, one of the world’s largest crypto exchanges.
BNB is a utility token in the cryptocurrency market that serves a specific purpose within a blockchain ecosystem. Binance offers a discount on trading fees for users who elect to pay in BNB. Binance has expanded its utility to include participation in token sales and ICOs on the Binance Launchpad. This allows users to support projects and acquire new tokens using BNB.
Additionally, BNB can be used for travel bookings and merchant payments through the Binance Card, making it more versatile and appealing to a wider audience.
A key element of BNB is that Binance has a regular burn program. Initially under this program, Binance allocated 20% of its quarterly profits to repurchase BNB from the market and subsequently burn it. The exchange removed wording that specified the link to its quarterly profits, but it continues to burn BNB on a regular basis.
This process effectively reduces the total supply of BNB in circulation. The buyback and burn program holds significant implications for BNB. By decreasing the supply of BNB while maintaining or even increasing demand, the program creates scarcity and in the past has helped to drive up the value of the cryptocurrency.
The creation of BNB can be traced back to the inception of Binance itself. The founders and developers of Binance, Changpeng Zhao (CZ) and Yi He, envisioned the need for a decentralized digital asset exchange that could cater to the growing demand for cryptocurrencies. As a result, they launched Binance and introduced BNB as its primary utility token — initially calling it Binance Coin. It started with a token sale that raised $15 million by July 2.
Disclaimer: The “About” content was generated with the use of AI. For feedback and sponsorship enquiries, email [email protected].
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.