Engaging in the cryptocurrency market offers a high level of appeal and diversity. Numerous digital currencies, such as Binance Coin, abbreviated as BNB, along with many others, each have a story and adventure to tell, defining an enjoyable and intriguing journey for traders and enthusiasts in this market. FFMag website exerts its utmost effort to introduce these currencies to its audience.
Introduction to Binance Coin
This digital currency was introduced through an Initial Coin Offering (ICO) by the prominent exchange Binance, abbreviated as Binance Coin, shortly after its inception experienced significant and rapid growth, quickly rising to the ranks of major and high-value cryptocurrencies. The purpose of this currency was to raise capital for the further development and expansion of the exchange, as well as to facilitate easier payment of transaction fees.
BNB, as the token generated by Binance, initially operated under the ERC-20 standard on the Ethereum blockchain network. After some time, it transitioned to the proprietary Binance Chain network, and over time, its value saw a remarkable upward trajectory, while its areas of application and use also expanded.
Binance Exchange has established itself as the largest digital currency exchange in the world since January 2018, enabling over 1.4 million transactions per second.
The Story of Binance Coin Formation and Growth
The beginning of the history of this digital currency can be traced back to July 2017 when its initial offering was conducted through the Ethereum network. However, after two years, in 2019, the powerful Binance exchange launched its mainnet under the name Binance Chain, thus bringing this currency under its own umbrella. The reason for naming the network after the country China is attributed to its founder, Changpeng Zhao, known as CZ, who is recognized as the wealthiest individual in the cryptocurrency world.
Although the exchange’s initial operations also took place in China, the country’s regulations imposed very challenging and stringent conditions on digital currencies and related transactions. As a result, Changpeng Zhao was forced to continue its operations in Japan, where, unlike China, there was a keen interest in the new concept of cryptocurrencies and technology penetrating financial markets.
Binance Exchange Activities
As one of the most popular and successful exchanges active globally, Binance offers a wide range of services to its members and users. Some of these services include:
- Providing favorable conditions for buying and selling digital currencies
- Facilitating various types of transactions such as futures and options
- Enabling activities related to financial markets
Given its highly successful performance and leadership in this field, the introduction of its native currency immediately received widespread acclaim.
Initial BNB Price
With the initial offering of this currency, conducted as part of an ICO, BNB tokens were distributed among participants, including some investors, the founding team, and of course, a portion was made available for public sale. The initial price was set at around $0.1, but before the year ended, it reached the $25 mark, generating hope for many enthusiasts looking to invest in the cryptocurrency market.
The initial distribution of token sales can be outlined as follows:
- 40% went to the founding team, which amounted to 80 million tokens.
- 10% was acquired by some investors, which accounted for about 20 million tokens.
- 50% was offered in public sale at a price of 15 cents per token, totaling 100 million tokens, which created exceptional conditions.
The total sales revenue amounted to $15 million in Bitcoin and Ethereum for Binance tokens, of which 35% was used for platform upgrades and Binance ecosystem development, and 50% was allocated for branding, training new employees, and new marketing initiatives. The remaining 15% was reserved for unforeseen circumstances and emergencies.
Read More: Introducing the Top 20 Cryptocurrencies
When I knew nothing about Binance Coin
I vividly remember the time when I was completely unfamiliar with this fascinating and dynamic world. I hadn’t even heard of this exchange, let alone knowing about cryptocurrencies. One of the most frequently heard words was “Binance,” which left me utterly puzzled. What exactly was it? A cryptocurrency? A specialized technology or platform? An exchange? It was challenging to connect the dots between these concepts. The reason being, I had no idea that an exchange could be the foundation of certain digital currencies.
Eventually, when I found myself struggling to grasp its essence, I simply found solace in the mellifluous sound of the word itself, never anticipating that one day I would have to write about its introduction for you.
Getting to Know the Founder of Binance
Binance Coin, as the offspring of an exchange with the same name, is the result of the efforts of a 45-year-old billionaire of Chinese-Canadian descent. Armed with a Bachelor’s degree in Information Technology, he delved into entrepreneurship and has a track record of managing several companies, including Blocks, Equinox, and Steel Coin.
He founded his exchange in China in 2017 and soon realized that the country’s regulations did not permit him the extensive and free activity he envisioned for his new system. Consequently, he relocated to Japan, where he achieved heights of success that have made him a prominent figure in the crypto market to this day. His name, along with his efficient team, has become intertwined with the cryptocurrency market, earning him substantial wealth. CZ is the owner of one of the most famous and reputable digital currencies globally, known as a popular choice for many investors.
Applications of Binance Coin
This article on FFMag seeks to elucidate various aspects of BNB, including its important applications. While some functionalities apply to all digital currencies and primarily revolve around trading or transacting, we delve into explaining its practical roles.
Deal Making and Trading
If you intend to engage in trading on any of the exchanges, you can easily count on this cryptocurrency and conduct your transactions with it, depending on the conditions and limitations specified.
Payment of Exchange Transaction Fees
For your activities and transactions on the Binance exchange, you can benefit from this token, and if you are among its users, you will also enjoy a discount.
For Credit Card Payments
By utilizing this cryptocurrency, you can allocate payment routes to crypto-related credit card accounts.
Choice for Business Transactions
Economic actors, merchants, and traders can also use this virtual currency to diversify and facilitate payment conditions for their customers and counterparties.
Online Payment for Various Websites
Some online payments, such as certain purchases, reservations for various venues like hotels, and others alike, can be made with this currency.
Investment
With the capabilities of Binance Coin, one can invest in various platforms and use them to purchase shares, ETFs, and other issued assets.
With the expansion of digital currencies, better and more extensive applications are emerging for them, and the possibility of their use is increasing.
Conclusion
The domain of digital currencies is vast, with numerous cryptocurrencies observable in the crypto market. One of the most famous among them is Binance Coin, which was launched and introduced by the large Binance exchange in 2017 and quickly embarked on a journey of growth and advancement. Currently, it holds a prominent position among the top and most popular cryptocurrencies. The FFMag website has provided explanations about the applications of BNB. Like other cryptocurrencies, it can be used in various fields, with the most important being conducting various transactions.
Also Read: What is Ethereum?
By David Taha