2017 was when cryptocurrencies started grabbing significant attention from the public during the Initial Coin Offering boom. Many projects created public and private sales to fund their cryptocurrency and blockchain business by selling their coin\tokens.
Conveniently, the Binance exchange was founded at that time and has managed to pick up the fruits of the ICO boom and boost its popularity to become one of the most popular cryptocurrency exchanges to date. Having the rage and the money, Binance has decided to make a unique move, creating its programmable blockchain network and token, making it the first cryptocurrency exchange to do so. That is how BNB was born.
BNB is the native token of the BNB blockchain created by the Binance exchange. BNB stands for Build and Build. It offers a similar feature such as Ethereum, and that is that users can create different kinds of apps powered by cryptocurrencies and blockchain technology.
BNB is the native token of the BNB blockchain created by the Binance exchange. BNB stands for Build and Build. It offers a similar feature such as Ethereum, and that is that users can create different kinds of apps powered by cryptocurrencies and blockchain technology.
BNB was one of the first blockchains that followed in Ethereum’s footsteps, and that is creating a programmable blockchain.
The unique thing about BNB is that the whole network and its crypto are centered on different products offered from the Binance exchange, giving the token holders many benefits when using the same products.
Here are some ways you can use your BNB tokens.
At the time of writing (June 5th, 2024), the BNBs price is $701.33. The current Market Cap ranking is #4, with a market cap of $103.5B.
BNB has hit an all-time high price of $717 in June of 2024, the highest price since May 2021.
The initial maximum supply of the BNB token is 200M. Binance has a quarterly burning of the tokens to reduce the maximum supply to 100M tokens, thus making the token more valuable by increasing scarcity.
The initial token distribution went as follows:
The current circulating supply is 163.2M.
The initial maximum supply of the BNB token is 200M. Binance has a quarterly burning of the tokens to reduce the maximum supply to 100M tokens, thus making the token more valuable by increasing scarcity.
The initial token distribution went as follows:
The current circulating supply is 163.2M.
Changpeng Zhao and He Yi co-founded the Binance exchange. They both have extensive experience in the blockchain and crypto industry, having worked and founded companies before founding Binance in 2017.
2024 goals include BNB Chain Fusion, expanding BSC validators, and introducing PBSS and Parallel EVM 3.0. For opBNB, plans involve increased gas limits, support for EIP 4844, and enhanced fraud protection. BNB Greenfield 2.0 aims for permanent storage and improved security, while AvengerDAO 3.0 focuses on proactive hack detection. Additionally, goals encompass high-frequency DeFi, fully on-chain games, AI integration, and advanced infrastructure enhancements.
BNB and Binance possess one of the most vibrant communities in the crypto space. They are regularly organizing live meetups in the biggest cities in the world, such as Dubai and Kyiv.
They also have a program called Binance Angel Program. Over 300 people (angels) in 70+ cities worldwide help organize different online and offline events.
Finally, they have over 60 official Telegram groups that span many crypto topics and are featured in multiple languages.
When the BNB token was released, Binance raised an investment worth $25M across three funding rounds. Some of the VCs and investors that have contributed are Vertex Ventures Southeast Asia & India, Vertex Ventures, Vertex Ventures China, Black Hole Capital, Funcity Capital, Sequoia Capital, Limitless Crypto Investments, Chris McCann, Fundamental Labs, Plutus21, and others.
Binance has had its fair share of legality problems regarding different markets. Its operations were banned in China during its ICO ban in 2017, and some legal issues in the USA.
On November 21, 2023, Binance admitted guilt on some activities and consented to a payment exceeding $4 billion to resolve the Justice Department’s investigation into various breaches related to the Bank Secrecy Act (BSA), failure to register as a money transmitting business, and the International Emergency Economic Powers Act (IEEPA).
Former Binance CEO Changpeng “CZ” Zhao was sentenced to four months in prison on April 30 2024 in Seattle for violating U.S. money laundering laws, following years of investigations by U.S. authorities. Judge Richard Jones stated there was no evidence Zhao was aware of any illegal activities at Binance, rejecting the DOJ’s recommendation to increase the sentence. The four-month sentence, along with substantial fines, is seen as lenient by U.S. authorities, who have been probing Binance since 2018, involving agencies like the DOJ, SEC, and CFTC. The crackdown included multiple investigations and charges related to money laundering, market manipulation, and unregistered securities sales.
BNB has been in constant growth since its inception in 2017. Here are some numbers to help illustrate that.
BNB is a very popular blockchain with a large number of competitors. Ethereum and OKB are the main competitors, with Solana, and Cronos following closely behind. Ethereum is the first Layer 1 in the world competing with BNB, and OKB is BNB’s biggest competitor when it comes to tokens created by exchanges.
Ethereum is the world’s first programmable blockchain. The main difference between BNB and Ethereum is that BNB is a more centralized network than Ethereum, in a sense that fewer people have a say in how the network’s future will look and how it is governed.
OKB is a cryptocurrency released by the OK Blockchain Foundation and the Maltese crypto exchange OKEx. OKEx, one of the largest exchanges worldwide, ranks third in liquidity and fourth in trading volume, offering a wide range of trading pairs. Unlike Binance, which provides a broad range of global crypto services, OKEx has its own cloud mining service and focuses more on options trading for users.
Here is a table that shows more details of the competition through some numbers.
BNB | Ethereum | OKB | |
|---|---|---|---|
Transactions Per Second | 55-60 | 15 | 5000 |
Time Needed to Confirm a Transaction | <5s | 6 min | 5-6s |
Average Transaction Fee | 0.31$ | 15$ | / |
Market Cap | $103b | $457b | $2.9b |
Circulation Supply | no limit on the MAX number of tokens | no limit on the the number of tokens | 20% in circulation |
Total Number of Wallet Addresses | 453.22m | 212.66m | / |
Total Number of Daily Active Users | 1.07m | 457.4k | / |
Launch Date | 2017 | 2015 | 2018 |
Average Growth Rate | 160.30% | 145.1% | / |
There are obvious risks associated with investing in crypto, just as there are with any other asset class. Because there are so many distinct types of cryptocurrencies, risks may be categorized into two groups: general risks that apply to all cryptocurrencies and coin-specific risks.
We’ve put up a guide that covers general cryptocurrency investing risks and offers tips on how to mitigate them, while risks particular to individual coins are covered in coin guides such as this one.
Since the BNB token is connected with the Binance exchange and related products, the risks to the exchange can also apply to the token itself.
Twitter: https://twitter.com/BNBCHAIN
BNB is a token for the blockchain network with the same name created by the Binance exchange. It is the 4th largest cryptocurrency globally and the second most popular programmable blockchain next to Ethereum.
With an exciting roadmap ahead of them where they focus on improving its technical abilities, we can only sit back and see where it will go from here.
BNB token has a lot of use cases, mostly related to the Binance products. It has attracted many investors raising $25M in three funding rounds. It also has some risks, such as competition and potential security breaches and regulatory attacks, but those are pretty much tied to every crypto exchange token.
