Binance Coin- The Exchange Crypto
- Tanishq Wadhwani
- May 7, 2021
- 3 min read
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The exchange token Binance coin (BNB) is a bit of an odd one out in the list. While it’s commonly derided for being a centralized cryptocurrency due to its link to Binance, no one can deny that it has a clear use case. Binance is one of the largest cryptocurrency exchanges right now in the world based on trading volumes, and BNB is the exchange’s token. It can be used to lower your transaction fees, and nowadays serves as the native token of the Binance Chain and the Binance Smart Chain (BSC), both of which are seeing strong growth too.
Launched in July 2017 , Binance is one of the biggest cryptocurrency exchanges globally. By aiming to bring cryptocurrency exchanges to the forefront of financial activity globally. The idea behind Binance’s name is to show this new paradigm in global finance — Binary Finance, or Binance.
Aside from being the largest cryptocurrency exchange globally, Binance has launched a whole ecosystem of functionalities for its users. The Binance network includes the Binance Chain, Academy, Trusted Wallet and Research projects, which all employ the powers of blockchain technology to bring new-age finance to the world. Binance Coin is an integral part of the successful functioning of many of the Binance sub-projects.
Binance Coin is a utility cryptocurrency that operates as a payment method for the fees associated with trading on the Binance Exchange. Those who use the token as a means of payment for the exchange can trade at a discount. BNB can be used to pay Binance’s 0.1% per trade fee in addition to its withdrawal fee, which is charged when users move their cryptocurrencies from the exchange to a private wallet. BNB can also be traded for other cryptocurrencies. Binance Coin’s blockchain is also the platform that Binance’s decentralized exchange operates on.
Binance Coin was initially an ERC-20 token that operated on the Ethereum blockchain. It eventually had its own mainnet launch. The network uses a proof-of-stake consensus model. As of January 2021, Binance has a $6.8 billion market capitalization with one BNB having a value of $44.26.
Changpeng Zhao is the founder and CEO of Binance. In 2001, Zhao joined Bloomberg as head of tradebook futures development. He spent four years with the company and later joined Fusion Systems as a partner.
Since 2013, Changpeng Zhao has been actively involved with blockchain technology and cryptocurrencies. He became head of development at Blockchain, and in 2015 he founded BijieTech. In 2017, Zhao officially launched Binance, and he has been the CEO of the company ever since.
He Yi is a co-founder and chief marketing officer at Binance. She started her career as a TV anchor and presenter on China Travel TV in 2012. Later, in 2014, Yi co-founded OKCoin, which was the largest fiat-to-crypto exchange in China at the time. In 2017, she joined forces with Changpeng Zhao, and together they created the largest crypto exchange globally — Binance.
Binance is a unique ecosystem of decentralized, blockchain-based networks. The company has grown to be the leading crypto exchange in a number of countries, and their side organizations are attracting significant interest as well.
One of the biggest competitive advantages Binance has is its drive for development. While the company started only as a crypto exchange back in 2017, today, Binance has spread its services among numerous different spheres. According to the company website, its mission is to become the infrastructure services provider for the entire blockchain ecosystem.
Since launching the Binance Coin, the exchange has also benefited from increased investor interest in the token. BNB went through a significant price increase at the beginning of 2021, which has put it on the map of enterprise investors.
Over the years, BNB has become one of the biggest and most popular coins in the world. At the time of writing this article, the Binance Coin price stands at $634, which is significant considering its only purpose is to facilitate trades on the Binance platform. However, Binance Coin can also be used to trade with other cryptocurrencies and is accepted in most major crypto exchanges around the world.
Is it a true cryptocurrency? Perhaps not. But for those looking to invest, there is clear value in crypto that almost everyone getting into cryptocurrency can profit from, and that will be heavily pushed by the largest exchange in the world.
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