Binance is an ecosystem of decentralized networks based on blockchain technology. As of the second quarter of 2022, the exchange is the biggest cryptocurrency exchange globally and with a daily trading volume of $7.6B.
BNB is the exchange’s cryptocurrency, and users receive discounts when they use it to pay for transaction fees on the exchange. You can trade or exchange it for other digital assets like Ethereum, Litecoin, Bitcoin, and more.
Binance Coin is the digital currency that powers the Binance Chain and the Binance Smart Chain (BSC) ecosystems. It has a wide range of use cases and applications, especially as the number of projects launched on the BSC increases.
Binance exchange users can use the token to trade and pay transaction fees. As of press time, it is the 5th ranked cryptocurrency globally by market cap.
Changpeng Zhao, together with He Yi, a co-founder, and current chief marketing officer, created Binance Coin in July 2017. The coin initially operated on the ERC-20 standard on Ethereum before moving to Binance Smart Chain.
BNB’s progress can be separated into three market cycles—the first, second, and third market cycles.
Binance Coin’s first market cycle is traceable to 17th November 2017, when it began with a low price of $0.50. However, it took BNB just 67 days to reach a unit price per token of just over $25.
Following its bullish trend, BNB hit its all-time high value of $39.59 on June 22nd, 2019. Almost 200 days from the previous date, the popular token then rallied by a massive 861% in the crypto market.
We are currently well and truly into BNB’s third market cycle, and as of press time, the coin is worth $304.94 with a market cap of $49.78B.
BNB is undoubtedly one of the leaders in the cryptocurrency market. Below is a highlight of the token’s profile explaining the important BNB-related numbers.
|Total Supply||163,276,975 BNB|
|Maximum Supply||165,116,760 BNB|
|1-year Price Low||$261.82|
|1-Year Price High||$654.32|
|Markets||Binance, Swapzone.io, FTX|
BNB is an impressive cryptocurrency project that offers holders, investors, and traders several benefits. However, like other crypto projects, it has areas it could improve on. Here are its pros and cons.
As mentioned, Binance began as an ERC-20 token on the Ethereum blockchain before it went on to introduce its own blockchain. The coin is tradeable across several top crypto exchanges globally.
Being the native token on the BSC network, users of leading decentralized exchanges like Pankcake Swap use it to pay network fees. It’s fair to call it a utility token for most projects, and it can be used for a plethora of functions.
In addition to its blockchain functions, there are so many everyday use cases of BNB, and they include the following:
Each quarter since 2017, Binance has spent one-fifth of its revenues/profits on buying and burning the coins held in its treasury.
The exchange will keep burning tokens each quarter until it finishes re-buying and burning 100 million units or half of the original max supply.
Binance Coin is arguably one of the biggest and most reputable cryptocurrencies within the past year, making it one of crypto investors’ favored coins.
From the chart above, the value of the coin has had an eventful past 12 months, beginning the period at $316.33, hitting a 1-year price high of $654.32 and a low of $261.82.
This points to the fact that BNB is incredibly volatile in the short term. While forecasts and technical analysts say investing in BNB is potentially profitable, short-term investment is very risky.
Holders of this asset get access to several bonuses that the Binance ecosystem offers, which include
Digital assets projects face lots of criticism and legal issues, and BNB is no different from the lot. Amongst its challenges, volatility, and decentralization are some of the biggest. Below we highlight some.
As it is with most cryptocurrencies, BNB is a volatile project. Regardless of how much it puts on in bullish rallies, BNB can lose more than 30% of its capitalization, which is why investors find it risky.
Binance has been in the news recently for being under investigation by law enforcement agencies in the United States.
The Department of Justice and The US Internal Revenue Service, are investigating Binance Holdings Ltd on suspicion that people use the platform to evade tax and launder money. The company is cooperating with these agencies.
One of BNB and other major crypto’s biggest problem is that criminal elements usually use them for illegal and devious activities on the darknet. These activities include purchasing illegal artifacts like drugs, stolen properties, weapons, etc.
If you are interested in investing in cryptocurrencies, BNB is a good place to start for long-term investors willing to hold the token.
But if you’re after short-term investments and just looking to scalp, know that it and other crypto assets have high volatility, and you could lose your investments in hours or days.
It might be a good idea to exchange Binance Coin, especially when you can exchange the cryptocurrency at the best rate.
On Swapzone, you can easily convert BNB through a wide range of instant cryptocurrency exchange providers listed, review these supported exchangers, their offers, and the exchange rates they pick.
With lots of cryptocurrencies in the market, it could be hard to keep up. However, BNB is one of the tokens that has posted impressive growth figures since its creation.
It has a strong community and is backed by the Binance Exchange. That being said, if you want to foray into the world of crypto investments, this guide should help you understand the project better.
If you’re willing to be a crypto investor, it can be a good investment for you in 2022. However, remember that all crypto assets are highly volatile, so analyze the market carefully and make informed decisions given your financial goals and needs.
At the time of writing, there are 163,276,974.63 BNB in the market,. It has a max supply of 165,116,760 and an initial maximum supply of 200,000,000 coins.
While there are some unreliable crypto projects in the industry, Binance is currently one of the reliable and most reputable ones.
Learn how to exchange cryptocurrency with the lowest fees or zero fees as well as how to find the best crypto exchange rates and choose the safest cryptocurrency exchange provider.