Project Update: Binance Coin (BNB) the Cryptocurrency Behind Binance Exchange

Kane Dane May 25, 2018 Binance Coin, Crypto News

Project update: Binance Coin (BNB) the Cryptocurrency Behind Binance Exchange

Basics

Binance Coin (BNB) is the cryptocurrency supporting one of the biggest cryptocurrency exchanges in the world: Binance.

Binance held the ICO where they used the funds to create the Binance exchange.

Since the release the exchange quickly became one of the biggest and most reliable cryptocurrency exchanges in the world.

The team behind the exchange introduced some interesting use cases for the token.

Tokens and usage

The token has several use cases and grands benefits:

– exchange fees are reduced if paid in BNB
– users holding 500BNB will get double the referral bonus so there is intitiative to hold the tokens
– people can contribute to the ICOs in BNB through the launchpad (next to ETH)
– users can convert dust (small amounts of crypto that can’t be sold) into BNB
– as a market (users can buy other cryptos with BNB)
– Binance has BNB re-purchasing plan where every quarter, they will use 20% of profits to buy back BNB and destroy them
– will be used for decentralised exchange in the future

Recent News

The double of the referral bonus was introduced recently: just few days ago. Users holding 500BNB get the bonus. This affected the price very positevly.

The dust conversion was also introduced recently, just around a month ago.

Binance regurarly does different competitions and giveaways – there’s a CLOAK competition ongoing with IOTA just finished.

Recent listings include Augur, Bytecoin, Loom Network, Cloak and Golem with TrueUSD listing upcoming (less dodgy Tether)

It was recently annouced that Binance is more profitable than the Deutsche Bank last quarter

Roadmap

There is no specific roadmap available but there are certain planned developments:

First of all the BNB bonus will decrease with time which might not be that great for BNB value.

In the future, Binance will build a decentralized exchange, where BNB will be used as one of the key base assets as well as gas to be spent. It is actually unclear when this will happen.

There will obviosly be new listings and new ICOs ran on the platform but the schedule for those is unclear.

Availability and price

BNB is listed on Binance (duh) but also on Bancor Network (tiny volume there though)

Since BNB is treated as a market it is connected to plenty of cryprtos with Bitcoin, Tether and Ethereum listing having the most volume.

Current price as of 25th of May is around $$12.90 with BNB being ranked on 18th place in terms of the market capitalisation and market cap of $1.4B

Around 114M out of 195M of the tokens is in the circulation. Keep in mind however that a lot of tokens will be burned too.

BNB has been increasing nicely until the end of January where it suffered really badly in the recent bear market. The ATH is $24.91 and was achieved during the January bull run. BNB has been outperforming Bitcoin for a while however.

How is it doing?

Binance has been the best exchange for a while and proved many times that is the safest and most reliable while also retaining users through giveaways and comeptition

In terms of the use cases for BNB there are plenty and while the fee reduction will decrease with time so will the amount of tokens which should balance the supply and demand.

On top of that the ICO launchpad should be a big deal if valuable ICOs use Binance.

If you are an active trader or want to take part in ICOs BNB is a must have but even without it it should be a solid and reliable choice.

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Not a financial advice.

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Kane Dane