Killer Whale Crypto
August 25, 2021, 1:32 AM UTC
This article takes a close look at Binance Coin and the Binance Exchange.
Binance (BNB) Coin Review
The world’s fourth-largest cryptocurrency and the largest cryptocurrency exchange, has humble origins on its way to crypto dominance. In this piece, we review how Binance Coin (BNB) grew in popularity and market cap.
Binance was founded by developed Changpeng Zhao in 2017 and is based out of the Cayman Islands (originally headquartered out of China but moved due to China’s increasing cryptocurrency regulation) and is not only the fourth-largest cryptocurrency by market cap but is also the largest cryptocurrency exchange in the world. Originally, Binance Coin started as an ERC-20 token but now operates on its own blockchain: The Binance chain.
During its July 2017 initial coin offering (ICO), Binance Coin was sold at 15 cents. Binance offered 50% of the coin to the participants within the ICO process, 40% of the coin to the Binance founding team, and the remaining 10% of the coin was to be distributed to angel investors. In the end, Binance raised $15 million in Bitcoin & Ethereum, respectively. The Binance team then used 35% of the funds to upgrade the platform. Another 50% was allocated towards Binance marketing, branding and education. The remaining 15% was then put into a reserve for emergency situations.
What makes Binance coin valuable is its scarcity. Not only will there ever only be 168 million Binance coins available but Binance also performs a quarterly coin burning. Binance performs a coin burning every quarter, repurchasing coins to permanently destroy or “burn” them. As of April, Binance has gone about burning a total of 1,099,888 Binance coins, or the equivalent of $595,314,380. Binance does this practice to ensure that the Binance coin supply not only remains finite but also to maintain cryptocurrency scarcity and value.
The cryptocurrency was created as a type of utility token, but it grew to do much more than that.
Brining Binance Balance
Binance coin is used for paying transaction fees on the Binance Chain, Binance DEX as well as Binance.com. As the cryptocurrency and its usage grows, so does Binance’s utilization on several platforms; including, but not limited to sites like Crypto.com to booking travel arrangements on Trip.io. Binance coin has grown so much in the recent years that it has even gained the support from companies such as Uplive: Asia’s premier video streaming service. Along with the 20-million strong user base, Uplive sells virtual gifts in exchange for Binance coins. With the capabilities to do things from making credit card payments to making loans & investments, sufficed to say there is only a growing fan base of Binance coin.
Binance & beyond
With Binance’s recent appointment of CEO Richard Teng, things are looking up for the cryptocurrency. While Binance boasts one of the world’s largest cryptocurrency exchanges, Binance coin has jumped well over 12% this month. Binance also offers its users a 25% discount with brokerage fees when trading on the platform.
With the new leadership at Binance, there is a large amount of optimism surrounding the cryptocurrency and while there is no shortage of negative news surrounding the exchange, Binance seems incredibly driven to provide a transparent, compliant, and safe trading platform for its users to thrive upon. The cryptocurrency platform has gone about deploying CipherTrace, the world’s first ever Blockchain “forensics team” that aids in protecting financial institutions from virtual laundering risks and crypto-related attacks. The industry has experienced its fair share of hacks and fraud. With CipherTrace teaming up with Binance, the world’s largest digital asset exchange looks to revolutionize the safety and security within the cryptocurrency industry.
Binance coin has grown immensely in its four years and the cryptocurrency is exploding in popularity and market cap. With new leadership and new guidelines, the direction Binance coin is heading towards is worth taking notice!