Behind The Coin: Binance $BNB

If you are involved with cryptocurrency, chances are you have used or at least know what Binance is. One of (if not the) top tier exchanges for cryptocurrency purchases, trades and transactions, Binance has become a household name with their large inventory of coins, friendly user interface, secure network and transparency through communications with the community online, and while the exchange is what is commonly known to most people, their coin $BNB, and future plans to create their own mainnet blockchain, should have crypto enthusiast excited about the potential growth for this company.

Team:

There are many big names and faces in cryptocurrency, and Binance happens to have one of those as their CEO. Changpeng “CZ” Zhao, founder of Binance, has grown quite popular in the crypto world in a very small time frame. He founded Binance in July of 2017 and since then has created one of the biggest and trusted cryptocurrency exchanges in the world. CZ, a computer science major, developed trading software for Bloomberg’s Tradebook. In 2013 he learned about Bitcoin and started working for various blockchain projects until 2017, when he raised $15 million dollars through Binances token sale to get the company up and running.

Development:

The $BNB coin is currently used for making purchases of coins on the exchange. When you use the Binance coin, you are given a discounted rate on purchaes. Binance has charted their discounted prices below:

bnb1

The $BNB coin runs on the Ethereum network using the ERC-20 token standard. On March 13th, Binance made the announcement that they would be creating their own blockchain, where they will focus on the transferring and trading of blockchain assests. This move will take the $BNB coin off of the ERC-20 standard and moving it to its own native coin on the Binance mainnet. This will be a major step in decentralized exchanges by having a big name like Binance creating a trusted, secured and user friendly experience for traders. The ultimate goal of decentralized currency should be a place where purchases and trades can be made without total dependency on a centralized system. CZ’s approach of having both coexist is smart, both for decentralization, and for his business. This has long been the goal for the creation and development of the $BNB coin, and while its current purpose has been useful for purchases on the exchange, its long term goals of running a decentralized exchange will essentially bring real value to this coin.

Price:

As of this blog, $BNB sits at #16 on the Coin Market Cap with a total supply of 197,192,382 tokens and a circulating supply of 99,014,000 tokens. It’s current price is $11.74, with its all time high reaching $24.46. Each quarter, Binance uses 20% of their profits to buy back $BNB coins and burn them. They will continue this until they have a total supply of 100,000,000 $BNB remaining.

bnbprice

Final Thoughts:

I’m perhaps slightly biased in this article as I am a big fan of CZ. I love the way he has approached the cryptocurrency market and in such a short time frame, accomplished so much. With one of the best UI’s of any exchange, it gives comfort to those who are new to trading and for those with a wealth of experience, it hosts one of the largest supplies of coins to trade from. Security wise, Binance has one of the best track records with preventing hacks and keeping thier users funds safe. Binance has allocated $10 million dollars for future bounty awards against any hacking attempts.

With their future plans to move to Malta, this will enable Binance to offer fiat pairings on their exchange. With quarterly profits already at $200 million dollars, a fiat pairing is sure to increase profits and allow more growth of the exchange and their decentralized blockchain exchange. With so much growth potential from this company, Binance’s $BNB coin is sure not only have a successful 2018, but will have no problems being a coin you can depend on for years to come.

 

Binance Resources:

Binance
Website
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Reddit
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Telegram
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