Binance Coin - "burn with money" and earn

When the largest cryptocurrency exchange in the world introduces its token, it can be expected to be a success. Hardly anyone thought, however, that Binance Coin so quickly will be in the strict elite of cryptocurrencies and conquer the market.

We continue the cycle of the Forex Club portal, in which we describe the most interesting and popular cryptocurrencies in the world. Today is the time for Binance Coin - the first token created by the cryptocurrency exchange, which, due to internal ease, quickly became an independent product conquering the market.

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200 million tokens, and there will be only fewer

Binance Coin (BNB) is a token that works on the network Ethereum. The representatives of the stock exchange concluded that it is a waste of time and money to work on a completely new one blockchainem, since you can use the proven chain that collects excellent reviews. All the more so as it is supposed to be a utility token that is used for intra-exchange transactions in order to lower the commission. Every Binance client who pays BNB for transactions on the exchange receives a rebate for it. No wonder that the token quickly became popular.

Be sure to read: Binance - We check the cryptocurrency exchange [Review]

It is also difficult to expect a decrease in the value of Binance Coin, because it is almost impossible due to the solutions adopted. BNB was issued in the amount of 200 million pieces. However, the use of the Proof of Burn protocol means that the Binance exchange regularly buys its tokens from the market on a quarterly basis. It allocates 20 percent. profits from transaction fees. All purchased units are "burned", that is, withdrawn from the market forever. Ultimately, the volume of trading is to be half as much, i.e. 100 million BNB tokens. This makes the nature of the cryptocurrency obviously deflationary.

For investors on the cryptocurrency exchange, it is still very profitable to have Binance Coin tokens. Until August 01.08.2018, 50, they had as much as 25 percent for commission payments using this token. lower commission. A year later, it was 12,5 percent. less than standard. In the third year it is 12%, and in the fourth, which will also be the last 6,75 months of the promotion, they will pay XNUMX%. less than when paying in other cryptocurrencies.

USD 15 million during the ICO

BNB tokens went public on July 01.07.2018, 100. 80 million tokens were allocated to investors, 20 million went to the founders of the Binance exchange and developers. Another 100 million to advisors and institutional investors who believed in the project and supported it financially from the very beginning. 0,15 million tokens sold out within three weeks, and they were paid for about $ 15 per item, which contributed to a revenue of about $ XNUMX million.

The so-called the insiders knew perfectly well how good the deal would be. A month after the end of the ICO, the president of the Binance Changpeng Zhao exchange announced that the vast majority of its employees - over 80 percent. of them - the payout is collected in BNB.

Quotations and Binance Coin (BNB)

Binance Coin can be exchanged not only on the Binance exchange. Now it is available on 45 cryptogames from around the world. No wonder, because the daily turnover already exceeds USD 181 million, and as of January 20.01.2020, 2, capitalization is over 650 billion. 9 million USD. In terms of capitalization, Binance Coin is already 2th among all cryptocurrencies in the world, which on that day was exactly 425. XNUMX.

The BNB exchange rate as of January 20.01.2020, 17,05 is USD 15, so it is easy to calculate how good a deal those who bought tokens at 22.06.2019 cents apiece did. We had the peak of trading on June 39,44, 155,5, when BNB was paid USD 100. Therefore, it can be said with full responsibility that the Binance Coin token coped with the downward trend in cryptocurrencies much better than the market average. Due to the planned "burning" of subsequent BNB tranches, it can also be assumed that it will perform better than the market in the coming quarters. Currently, there are XNUMX million units on the market, and ultimately there will be XNUMX million units.