The crypto-coin issued by the Binance exchange is the Binance Coin, which trades with the BNB symbol. The Binance coin runs on the standard ERC 20 Ethereum blockchain, and has a strict limit of up to 200 million BNB tokens.
Looking into Binance in depth
It is expected that the Binance coin will fuel the Binance exchange ‘s operations and its ecosystem. It supports the Binance ecosystem’s multiple utilities, including paying for trade fees, exchange fees, listing fees, and any other Binance exchange fees.
A 50 percent discount on trades through Binance coin is provided by the first year launch bid, and the discount percentage decreases by half each year. That is, the discount for the second year is 25%, the discount for the third year is 12.5%, and the discount for the fourth year is 6.25%, with the discount ending from the fifth year onwards.
Binance coins can also be used to invest in certain ICOs which are listed through the Launchpad programme of Binance. New cryptocurrencies are listed on the Binance exchange, and a seamless marketplace for trading in a variety of established and new virtual tokens is provided by the use of Binance.
The crypto token has also won support from other partnerships that have helped spread its use. This involves a partnership with Uplive, Asia’s premier high-end live video streaming platform, which sells virtual gifts to the 20 million strong user base of Uplive for BNB tokens. The platform, the mobile app, and Monaco’s VISA debit card, the pioneering payments and cryptocurrency platform, also support Binance coin.
Binance also has a repurchase plan under which it will use 20 percent of its profits to buy back BNB tokens and burn / destroy them until BNB tokens are purchased back to a maximum of 50 percent or 100 million. This process will leave in circulation only 100 million BNB tokens, helping it to maintain a substantial value. The Binance team announced in mid April-2018 that the burning of 2,220,314 BNB tokens (approximately $30 million) was completed.
The profitability of the Binance exchange is shown by consistent coin burns with increasing burn percentage as per the scheduled plans.
The coin was launched in July 2017 during an initial coin offering ( ICO). Through the ICO process, it offered 10%, or 20 million, BNB tokens to angel investors, 40 percent, or 80 million, tokens to the founding team, and the remaining 50 percent, or 100 million, to the different participants.
Almost half of the funds raised during the ICO process were intended to be used for the branding and marketing of Binance, while about one-third were used for the construction of the Binance platform and the necessary upgrades to the ecosystem of Binance.
During early April 2018, Binance Coin had a market cap of around $1.4 billion. At present, exchange against fiat currencies is not offered and exchange in BNB is only possible through cryptocoins such as bitcoin or ether tokens.
The native currency of the decentralised Binance exchange will eventually become Binance.