It's clear now that the world is starting to pay attention to the idea of blockchain, and its subsequent appetite for cryptocurrency tokens, as we shall learn in our Binance Coin review. This is because the trading volume of cryptocurrency exchanges in January 2021 broke all previous records to surpass a monstrous $900-billion. Over 60% of that trading volume, at a whopping $518-billion worth of cryptocurrency changing hands, were traded on Binance alone.
We can then make the strong assumption that Binance Coin (BNB), being the native in-house cryptocurrency token of Binance, plays an integral part in all the frenzied trading. It's hard to make mention of one without the other.
It's like trying to talk about banks without uttering the word, “Wall Street.” But Binance Coin (BNB) is more than just another cryptocurrency token, as it is the fuel to power an entire empire built by Binance.
They have been continually building up both their brand and their enterprise with new and innovative ideas. Binance is growing and becoming a one-stop-shop for all things blockchain and all things crypto, from decentralized exchanges to corporate-grade cloud solutions and VISA cards.
As we shall learn in our Binance Coin review, BNB tokens are more than just the fuel for this expanding ecosystem, as it has become an integral part of the cryptocurrency markets as a whole.
What Is Binance Coin?
Binance Coin (BNB) is the native cryptocurrency token for Binance's in-house Binance Chain blockchain, and it is also the currency for most transactions occurring across the wider Binance ecosystem. Binance Coin was originally built as an Ethereum-based ERC20 token before Binance moved to its own specialized blockchain.
Initially, it was conceived as a way to promote more trading on the exchange by providing discounts if traders held BNB tokens, but it has since developed in its use-cases.
Binance Coin had its first initial coin offering (ICO) on July 21st, 2017. Back then, a total of 100-million BNB tokens were sold out within just 20 days, thus raising Binance a total of $15-million. The funds were then distributed to help fund Binance's business, with 35% being used for development and upgrades on the platform, 50% used for marketing, and 15% saved for emergency use. Now, it is the 10th-largest cryptocurrency, with a market capitalization value of $7,644,459,218.
At the time of writing this Binance Coin review, one BNB token is worth $49.47, having gained over 9.85% within an impressive 24-hours of trading. Binance Coin's value has seen a steady upwards bullish momentum since the March 2020 crash that impacted the whole of the cryptocurrency market, following the outbreak of the Covid-19 pandemic. BNB has a total supply limit of 200-million tokens overall, including the 100-million sold during the ICO.
Of the remaining tokens, 80-million were allocated to the founding team at Binance, while 20-million were distributed to angel investors. Note that Binance has programmed a burn algorithm that will remove 100-million BNB tokens over time.
The burning occurs every quarter (3 months) and will gradually remove BNB's supply from circulation. At the time of writing this Binance Coin review, they have already completed their 13th quarterly burn.
What Can Binance Coin (BNB) Be Used for?
Now that we've learned what BNB is, we shall be taking a look at how you can use it in the real world, in our Binance Coin review. Initially, Binance Coin was built to function as a currency to be transacted and exchanged within the Binance ecosystem, from its exchange to other solutions catered for businesses and enthusiasts. Here is a shortlist of the functions that were originally intended for Binance Coin:
- Used for attaining discounts on trading fees – Traders that exchange cryptocurrencies on Binance can use Binance Coin tokens held in their account to get a 25% discount on their trading fees. This makes BNB highly sought after given how many people trade on Binance, especially those trading in higher volumes.
- Rights to participate in Binance services – BNB tokens can be used for holders to buy access and take part in other services and initiatives powered by Binance. For example, BNB holders can take part in Launchpad, which is Binance's token launch platform, thus allowing you to buy early into new cryptocurrencies and projects.
- Used as a trading pair – BNB tokens have been used as a quote currency matched to other cryptocurrencies for trading. BNB trading pairs are one of the largest and most well-known on the Binance exchange, alongside other major cryptocurrencies and stablecoins such as Bitcoin, Ethereum, Tether, and so on.
Aside from powering the Binance exchange and its partnered services, Binance Coin (BNB) is also the native currency for the deeper blockchain networks that power Binance's massive enterprise. For our Binance Coin review, we will take a quick look at how BNB is used as the fuel for both the Binance Chain and the Binance Smart Chain:
- Used for gas fees on Binance Chain – As the native currency of the Binance Chain, BNB is used to settle gas fees, just as Ether (ETH) is used on Ethereum. This includes using BNB to settle transaction fees, issuance costs for new assets, minting and burning costs, trading fees, among other processes that occur on the Binance Chain.
- Power new token standards – BNB is used to power and back the value of new token standards that have been built on the Binance Chain, including BEP-2 and BEP-8 ‘mini-token'. BNB is a BEP-2 standard token and is the main currency for use. BEP-8 ‘mini-token' standards are specialized compact and versatile currencies used for smaller and low-resource transactions such as utility tokens, on-chain point system, community tokens, and intellectual property (IP) tokens.
- Used for gas fees on Binance Smart Chain – Binance Smart Chain is a new side-chain built to complement and add more features to the Binance Chain. It is an EVM-compatible side-chain that can build and power smart-contracts alongside having its own oracle solutions and cross-chain interoperability. BNB is the native currency and is used for settling gas fees, such as executing smart-contracts.
Although already a comprehensive list of use-cases, Binance has been able to expand on BNB's usability beyond its own ecosystem and has made moves into the mainstream. They have been adopted for use as a currency for platforms that offer various goods and services, such as booking sites or accessing financial services. Here's a list made for our Binance Coin review to see how BNB tokens can be used with third-party services and platforms.
• Payments solution
BNB has been adopted as a payments currency. Companies such as Pundi X, Monetha, Coinpayments, CoinGate, coinify, and NOWPayments have integrated their point-of-sale systems with vendors and merchants worldwide to be able to accept BNB tokens as payment. Meanwhile, you can also use BNB to pay your Crypto.com credit card bills. This opens up a large avenue for more people to use cryptocurrencies as a usable day-to-day currency.
Binance's BNB tokens have been integrated into a wide variety of travel services and platforms worldwide to make life easier while overseas. TravelbyBit allows you to use BNB to pay with affiliated merchants, such as booking hotels or airfares.
You can use BNB on Trip.io to book at over 450,000 unique hotels and homestays worldwide. Travala lets you use BNB tokens to book from over 1.65-million different properties globally and even allows you to buy homes.
BNB tokens have been widely accepted into the entertainment industry as an acceptable and convenient medium of payment. Games such as Decentraland, VIBE, Axie Infinity, and Splinterlands can use BNB tokens so you could purchase in-game items, like card packs or virtual land.
You can bet on lotteries with BNB on BNB-Lotto, or use BNB to buy gifts online using ADAMANT Messenger, or Loom Network, or Gifto. MachiX even lets you use BNB to buy the copyright to music.
BNB is already used within Binance to pay for the company's employees, so it makes sense to adopt it even wider to pay for other services. You can use BNB tokens to pay for dedicated servers on PureVPN, create a new cloud server on CenterServ, or hire freelancers online using Canya. Other platforms like DENT, BitTorrent, and MyWish can use BNB tokens for buying new content or services on their applications, as well.
Owing to its focus as a monetary currency, BNB has a lot of use in the wider financial industry, too. You can use BNB as collateral to take out loans on Nexo and ETHLend. Bitcoin Suisse, NAGA, and Moeda accepts BNB as a currency for you to make investments, and to trade globally against major fiat currencies, stocks, commodities, and ETFs. Or, you might want to use BNB on LNDR to settle debts and manage expenses.
What Is BNB's Future Roadmap?
Binance has a large and expansive business, not only in powering a large portion of the world's cryptocurrency markets but also in supporting and building the foundation for new blockchain applications. They have already made a wide array of acquisitions within the blockchain space, such as WazirX and CoinMarketCap.
Their future will be underpinned by its role as a provider of various solutions to increase mainstream adoption, such as decentralized finance and enterprise-grade applications.
From our Binance Coin review so far, we can easily say that what is good for Binance will eventually lead to organic growth for its native Binance Coin (BNB) tokens. Binance is planning to continue rolling out its brokerage terminal service, helping to support both spot and futures trading, and connecting it with Binance, the world's most liquid exchange.
This brokerage system is able to service a wide variety of businesses, such as asset management, trading bots, algorithmic models, payments solutions, and more.
They have built a new enterprise-grade cloud service provider, opening up the ability for new blockchain businesses to build on top of Binance's capable solutions. It is able to let you issue your own tokens, have your own shares, with robust security, and have access to Binance's speedy matching engine. Binance DEX is a new decentralized platform that allows you to use both Binance Chain and Smart Chain to build dApps and DeFi services powered by BNB.
Binance Labs and Binance Launchpad are continually working to help give a platform for new and aspiring projects to grow. Major startups such as BitTorrent, Cred, Republic, and more have been incubated on Binance Labs.
Meanwhile, BNB is powering ahead with helping new tokens be launched on Launchpad, allowing new cryptocurrencies to be issued with ease. Binance has also been extending its charity arm, using its might and exposure in the cryptocurrency space to raise money and awareness.
As we've seen already, BNB tokens have been rapidly growing in usability as a viable form of payment, accepted in payments merchants, and being able to book accommodation across the world.
Binance will soon launch a VISA-powered card, where you can use a variety of cryptocurrencies – such as BNB – with over 60-million merchants worldwide. You can easily tap and pay on vendors, with other benefits such as zero fees and being eligible for up to 8% cash back on certain purchases.
Binance Coin Review – Conclusion
As we conclude our Binance Coin review, we can see that BNB's continued growth, adoption, and price appreciation will depend greatly on the continued prosperity and development happening across the rest of the Binance empire.
However, it has also made headway into more mainstream applications apart from those powered by Binance, such as being used as a form of payment, which will be crucial towards leading for mass adoption of cryptocurrencies.
Combined with the deflationary economics programmed into Binance Coin, its increasing scarcity makes for a very attractive and valuable token in any portfolio.
BNB's wide breadth of ability and already swelling support from the rest of the community is telling that the world is ready for cryptocurrencies and that cryptocurrencies are ready for the world. If our Binance Coin review is anything to go by, it looks like there's a lot of hope and promise for its future.
Binance Coin Review
Ease of Use
- Wide-range of usability, including being able to use with many third-party services.
- Deflationary economic model will increase its scarcity, and value in the long-term
- Allows for network participants on Binance to better monetize and take advantage of its blockchain.
- Regulatory concerns for Binance, having moved from multiple jurisdictions to avoid regulations.