Binance Coin (BNB) tokens are the native token of the Binance exchange. Since BNB tokens offers discounts to Binance exchange fees. We recommend non-USA customers BNB tokens directly on the Binance exchange.
What is Binance Coin (BNB)?
Binance Coin or ‘BNB’, is a cryptocurrency developed and released by the world’s leading cryptocurrency exchange, Binance.
What does it do?
While Binance is a wildly popular exchange, the company is looking to expand their operations to include a variety of different services. Binance Coin was created to serve this entire ecosystem.
For the time being, the vast majority of users utilize BNB to pay for various fees. While fees can be paid for with other assets, utilizing BNB provides its users with discounts on said fees.
Despite being primarily used as a means to pay fees on the Binance exchange, BNB’s structuring as a cryptocurrency allows for it to facility everyday transactions similar to coins like Bitcoin, Litecoin, and more.
How does Binance Coin (BNB) work?
Binance Coin is structured as an ERC-20 token. This means that it is built using solidity as a coding language, and operates atop the Ethereum blockchain.
The token itself was distributed in a past ICO, and is limited to a total 200 billion BNB. This total will eventually become static at 100 billion BNB, as Binance intends to routinely ‘burn’ tokens on a quarterly basis. To date, Binance has undergone 6 separate burn cycles.
Currently structured atop the Ethereum network, Binance Coin will soon be revamped. The team at Binance has indicated that that BNB will soon transition away from Ethereum network, and on to their own self-titled blockchain, Binance Chain. No exact timeline has been given for this transition.
Binance Coin appears to be free of an underlying ideology. Its existence is solely as a means for Binance to capture a greater percentage of fees associated with the trading, listing, etc, of cryptocurrencies.
Acceptance and Controversies?
Due to the popularity of Binance exchange, Binance Coin has grown along with it. This adoption has resulted in a need for custodial options, with a bevy of wallet services now supporting the asset.
Beyond custodial support, Binance coin has seem modest adoption from various companies affiliated with Binance exchange. These affiliations open up the opportunity for BNB to be used for travel expenses, bill payments, investments, and more.
Throughout its short lifecycle, Binance Coin has remained relatively free of controversy. While there have been instances in which traders suspect market manipulation involving BNB, this is no different than most other cryptocurrencies. Where concern rises, is the potential for BNB to be viewed as a security. If this were found to be the case, there would be serious ramifications for Binance and BNB.
Binance CEO, Changpeng Zhao, has stated that BNB is not a security, and that various regulatory bodies have made this distinction based on its unique attributes.
In North America however, there has been little to no commentary made regarding BNB by actual regulators. Despite how BNB is treated in certain parts of the world, there remains a risk that the regulators such as the SEC will deem the asset a security. The simple fact that the token was sold via ICO, and that Binance directly controls and profits from BNB, puts it at risk.
Furthermore, it is believed that many of its users view holding BNB as an investment, due to the potential for deflation as a result of its quarterly coin burns.
The bottom line is, there has been no official statement one way or another on the regulatory status of BNB within North America.
Who Made It?
Binance Coin was created by developers at Binance Exchange in 2017.
This is the top that offer the ability to buy Binance (BNB) cryptocurrency with a credit card, debit card, or Bitcoin (BTC).
Binance is one of the largest and most well-known cryptocurrency exchanges in the world. The benefits of purchasing Binance (BNB) here are both lower fees than competing exchanges, and increased liquidity enabling you to buy and sell quickly to take advantage of market moving news.
This exchange is best for investors residing in Australia, Canada, Singapore, UK & internationally. USA residents are prohibited from purchasing most tokens.
Read our Binance Review or visit Binance.
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