Binance is a resounding name in the cryptocurrency space, where a large part of the followers and enthusiasts of this innovative technology are trading or investing in digital assets. The company behind which CEO Changpeng Zhao (known for his previous work in the high-frequency trading software industry) created the exchange platform in 2017, where anyone can create an account to trade thousands of cryptocurrencies, stake coins, swap them, and farm liquidity.
The team behind the platform created the native BNB currency, known as the platform exchange itself. Even in the bear market, we’re currently confronting, the asset price has fluctuated between $330 and $200, decreasing from the recent highs of $460 that formed during April this year and the major highs of $700 from November’s peak.
How did the BNB Coin emerge?
In 2017, when the platform appeared, the ICO (Initial Coin Offering) of Binance Coin took place with the initial price of 1 ETH for 2,700 BNB. If we do the calculation, at the peak, that would be almost $1,9 Million with the investment of only one Ethereum at the right time. The price enjoyed considerable growth in the last couple of years, given the popularity of technical information related to the Blockchain and the aggressive media coverage of the crypto space in the last bullish cycle. BNB was initially created on the Ethereum network and was then moved to its native Binance Blockchain in 2019, two years after it was created.
Once the original BNB Chain and Binance Smart Chain merged in 2020, the whole BNB ecosystem started to bring real rivalry to Ethereum, their main competitor, because they managed to keep up with new technologies. The cryptocurrency’s price, which was usually rising but was constantly kept under $40, exploded at the start of 2021 when it reached over $300 in February.
What’s the deal with Centralization and Decentralization? Is the trading platform closely related to its Blockchain?
The entire Blockchain space revolves around the idea of decentralizing financial services, which many crypto advocates hope we will reach soon. But database networks can also be centralized, decentralized, or hybrid – and refers to our ability to transfer information directly, from peer-to-peer, without an authority that verifies the transactions. As more checks are eliminated, the transaction time becomes shorter and cheaper.
While the Binance Blockchain network is decentralized and works using the Proof of Stake mechanism, where transactions’ validators have their native currency at stake, there are two exchange platforms: one centralized that provides services to their clients, as well as academic support for users or any other type of crypto enthusiasts, with entire teams behind them.
These essential factors have allowed Binance to grow tremendously in the US and European job markets. Furthermore, they have a trading DEX, which represents a decentralized exchange. In the last example, the exchange of coins takes place between two user wallets with minimal third-party intervention. The DEX is where we directly own the digital assets and can have tight control over them, but at the same time, we have to be very careful with technical details and passwords or passphrases.
What exactly are BNB Coins used for?
In the BNB ecosystem, we’re discussing about an autonomous organization (pretty similar to a DAO), where cryptocurrency owners can use them to vote for different decisions or changes that take place in the network thus, we’re talking about a utility coin that serves the ecosystem it belongs to. Coins are also useful for transactions and paying for goods and services or to pay trading commissions and other forms of taxes applicable on the exchange platform. There also exists the possibility of paying both online and in the real world using the Binance Card. These debit cards can be used with any provider that accepts this type of payment, as well as in video games and donations.
What are the benefits of BNB?
Using the native tokens of Binance, we can participate in ICOs, and other project launches on their launchpad, as well as other exclusive token sales. Other benefits may include all kinds of advantages, like receiving tax discounts for spot and futures trading. A major benefit that will keep the price going up indefinitely is the system of auto-burning that reduces the circulating supply of coins to 100 Million tokens.
Anyone can be an investor. You can buy, sell and hold BNB on IXFI Exchange. On a global scale, crypto remains a relatively young asset class with a growing number of investors. At IXFI, we’re building a community where everyone is welcome. We mean it when we say that anyone can be an investor. Try it yourself: join Your Friendly Crypto Exchange today and see where you fit in.
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