Binance Token (BNB) is a cryptocurrency created by cryptocurrency exchange Binance. It’s main function is as a form of value transfer on Binance Chain, trading pair on Binance DEX and as a utility token on Binance exchange.
Learn more about BNB and Binance as well with our video- What is Binance (BNB) in a nutshell.
BNB was launched through an Initial Coin Offering (ICO) on 14th July 2017 as an ERC-20 token before the Exchange was launched.
A total of 15 Million USD dollars were raised during the event.
Investors were compensated with BNB tokens during the ICO. At the time, each token was exchanging hands at US$0.10. The token’s price has since tremendously appreciated and is now one of the top 10 cryptocurrencies with the highest market capitalisation according to CoinMarketCap.
The token initially ran on the Ethereum network but was later swapped 1:1 with BEP2 BNB tokens. This is so the tokens can instead run on their own Binance Chain.
Uses for BNB on Binance Exchange
1. Exchange Fees: Binance tokens can be used to reduce trading fees. Currently, Binance has a 0.1% trade fee and 50% of this fee can be paid in BNB. You are eligible for a 25% discount when paying for trading fees using the token.
2. GAS: Binance will eventually feature advanced features that require GAS. The tokens can be used as GAS to power these advanced features.
3. Binance Launchpad: BNB is used to participating in the Binance Launchpad. This is an Initial Exchange Offering platform where cryptocurrency projects will publicly issue tokens on the exchange to participants.
4. Binance DEX: The Binance DEX (Decentralised Exchange) runs on the Exchange’s Binance Chain.
5. Staking: Binance eventually wants to develop a decentralised exchange. The tokens will be used on the Exchange to stake transactions.
Learn more with our Binance Exchange review.
Other uses for BNB
BNB can be used in other areas. For example:
1. Paying for goods and services: The token can also be used to pay for goods and services at different establishments. For instance, Binance invested in TravelbyBit to enable users to pay for services at entire Brisbane Airport. TravelbyBit is an Australian startup that enables establishments to accept cryptocurrencies for goods or services. (https://woodlees.com) Currently, the startup has over 150 establishments.
2. Accessing loans and cash: Holders of the Binance exchange token can withdraw cash from crypto ATMs. Additionally, they can access loans on the Nexo platform.
3. Accessing services on social media platforms: For example, it can act as a gift token on Uplive, a live streaming platform.
4. Trading and holding: The token can be traded just as a normal altcoin. Additionally, some people hold and speculate on the token in the hopes of profiting when the price appreciates.