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About Binance (BNB)

BNB, formerly known as Binance Coin, is a digital currency that powers the BNB Chain — an open-source, community-driven, and decentralized ecosystem. It trades with the ticker symbol BNB and stands for Build N’ Build. It was launched in July 2017 via an Initial Coin Offering (ICO) by Changpeng Zhao, Binance’s CEO, and He Yi, Binance’s Co-Founder and CMO.

As the native token for the Binance crypto exchange, its primary use cases are to pay for transactions on the BNB Chain as well as serve as incentives on Binance’s centralized crypto exchange. Traders using BNB are given discounts when trading on Binance. Furthermore, the coin is unique because it’s a vital part of most of Binance’s sub-projects. Moreover, BNB went through a notable price increase in 2021 that put it on the map, attracting increased investor interest.

Initially, BNB ran on the Ethereum blockchain until April 2019 when the tokens were moved to the newly launched Binance Chain. In February 2022, the Binance Chain and Binance Smart Chain (BSC) later evolved to become the BNB Chain.

BNB has a maximum supply of 165,116,760 tokens. However, Binance has a coin-burning process that occurs every quarter and is meant to remove 100 million BNB coins from circulation in total. The exchange recently completed its 21st quarterly auto-burn where over two million coins were burned.

Price history

Binance initially created the BNB coins to enable it to raise funds through an ICO. The BNB price at the time of the ICO was 15 cents. Binance offered 100 million BNB coins for sale and raised funds worth nearly $15 million at the time in BTC and ETH.

The month after the ICO, the BNB price dropped to an all-time low of $0.09. As seen in the BNB price chart below, the price fluctuations in the years that followed were very small until 2021, when the price experienced a significant boost. On May 10, 2021, the BNB ATH occurred at $690.93.

*Source: *CoinMarketCap

The BNB price today (at the time of writing this article) is $271.66, according to data on CoinMarketCap. The** **BNB price prediction for 2022 is estimated to be between $293.97 and $304.81. Changelly predicts that the BNB price will rise to an average high of $447.17 in 2023 and $695.34 in 2024. The upward trend is expected to continue with BNB’s price rising to a new all-time high of $10,090.03 by 2031.

How does BNB work?

The BNB Chain operates on a Proof-of-Stake Authority (PoSA) consensus mechanism. Participants stake BNB to become network validators and earn a reward from transaction fees for their contribution. BNB Chain restricts validators to a small number, 41 to be exact. This is what makes it cheaper and faster, unlike its Ethereum counterpart. At the same time, BNB Chain is also more centralized.

BNB token holders on the Binance exchange can get discounts on futures, margin, and spot trading fees when they pay using the coin. Additionally, BNB is used as a governance token, allowing its holders to contribute to the project’s decision-making process. The BNB Chain has an unusual feature that enables BNB users to reclaim lost tokens in special circumstances.

FAQs

Does BNB have a future?

BNB has maintained a high ranking among the top cryptocurrencies by market cap, possibly indicating high user demand. It is also faster and cheaper when used to carry out transactions and is the native token for the Binance crypto exchange, which is the leading crypto exchange globally. Therefore, the coin may have a future because of the benefits it gives users.

Is BNB worth buying?

BNB’s future price predictions look promising, and it might therefore be a good alternative investment to consider. Bear in mind that BNB has implemented a regular coin burn mechanism, creating some deflationary force acting on its supply. Also be aware, that BNB is issued by a centralized company, bringing it close to a security. Readers should do their own research (also referred to as DYOR in the space), to make sure they know what they are investing in.

What was BNB's starting price?

BNB’s starting price during its ICO was $0.15.

Related

Popular criticisms

Besides price volatility, a popular criticism of the coin is its dependence on the Binance exchange. Its reputation is, therefore, directly linked to the exchange and vice versa. Binance has also been under investigation by various law enforcement authorities in the US because of suspicions that people are using the platform for money laundering and tax evasion. Such regulatory scrutiny could also affect the BNB coin.

Comparisons to other projects

The BNB Chain is an Ethereum competitor since it allows developers to build decentralized applications (DApps) and projects can mint and issue tokens. BNB Chain has the second-highest number of DeFi protocols after Ethereum, potentially making it a strong contender of the top Ethereum killers.

Development timelines

In the first three quarters of 2022, the BNB Chain was upgraded to support faster and low-cost transactions. It also became more decentralized after the number of validators increased from 21 to 41. Between Q4 2022 and Q1 2023, the BNB Chain will introduce an improved blockchain storage system that can support lighter DApps.