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What is Binance Coin (BNB)?

5 mins read

Binance Coin is a virtual currency issued by the virtual currency exchange Binance, and as of March 2021, it is one of the most popular virtual currencies with a market capitalization ranking of 3rd.

This time, we will explain the features of Binance Coin, past price changes, future outlook, etc. in an easy-to-understand manner.

 

Features of Binance Coin

Binance coins have the following features.

Two main features of Binance Coin

  • Benefits of using it on exchange binance
  • Burning is carried out on a regular basis

 

Benefits of using it on exchange binance

Binance coin is a virtual currency (token) handled by Binance of major exchanges, and by using it in Binance,

  • Transaction fees are discounted
  • You can exchange money
  • The benefits such as are demonstrated.

First of all, Binance has a relatively low original fee of 0.1%, but if you pay with Binance coins, the fee will be further discounted.

Also, when using an exchange, a small amount of virtual currency may sometimes remain, but with Binance, you can exchange small coins of “0.001 BTC or less” for Binance coins.

 

Burning is carried out on a regular basis

Burning is the act of the management side disposing of a part of the virtual currency. By disposing of a part and reducing the total amount, there is an advantage that the rarity value can be increased.

Binance coins have a maximum issuance limit of 200 million, all of which have already been issued.

In Binance, we are supposed to burn Binance coins, which is 20% of the operating profit obtained in the previous quarter, every quarter, and the burn progresses as the operating profit increases, and the rarity of Binance coins increases as the operating profit increases. It is a mechanism that increases the value.

In the end, we will reduce the number of sheets to 100 million, which is half of the number.

 

Binance coin price changes so far

Next, let’s take a look at the price changes of Binance Coin so far.

The chart above is the BNB / USD chart from the listing of Binance Coin in July 2017 to the end of December 2020.

It has formed a large ups and downs wave many times, but from a longer-term perspective we can see that it continues its uptrend.

In addition, the following three points are important in the price transition so far.

 

Future forecasts and outlooks for Binance Coin

At present, the price of Binance Coin has skyrocketed and has entered a temporary adjustment phase, but it is expected to continue to grow in the long run from the next point.

Two points fortune-telling the future of Binance Coin

  • Affected by the exchange’s assessment of Binance
  • Rare value will continue to increase due to burn

 

Affected by the exchange’s assessment of Binance

Binance is a cryptocurrency exchange that boasts the highest trading volume in the industry.

In addition to doing business as an exchange, for example,

Business tie-up with “Crypto Mall”, the world’s largest shopping mall dedicated to virtual currency

Operates Binance DEX, one of DeFi

Operation of “$ 100 Million Grant Fund”, a program to support some DeFi projects

We are actively developing our business.

As you can see from past price changes, exchange Binance and Binance Coin price movements are closely related.

If various Binance business movements are positively received by the market, Binance Coin will continue to attract attention and continue to grow.

 

Rarity value will continue to increase due to burning

As mentioned in the feature section, Binance Coin burns (burns).

Since the quantity has not reached the target of 100 million pieces yet, it is expected that burning will continue in the future, and as a result, the rarity value will increase and the price will be affected.

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