Binance Coin (BNB) was founded by Changpeng Zhao in 2017 with an initial coin offering (ICO).
BNB tokens were distributed among the Binance team, angel investors, and the public on a 40/10/50 basis respectively. It operated as an ERC-20 token on the Ethereum blockchain before transferring to the Binance Smart Chain.
Binance Coin now plays an integral role in the crypto ecosystem. Read on for more about its purpose and investing in the token.
What is Binance Coin?
Binance Coin can be used to purchase a variety of goods and services where it is accepted, but it is most widely used to pay for transaction fees.
This crypto offers great benefits when you use the Binance Exchange. If you choose to use Binance Coin to pay for transaction fees on the Binance Exchange, you can receive a discount when doing so.
You can use Binance Coin to purchase bookings on certain travel websites. If you have crypto credit cards on Crypto.com, you can use your Binance Coin to pay off these balances.
BNB allows you to invest in ETFs, stocks, and other investments. If you are applying for a loan, you can use Binance Coin as a form of collateral. There are even smartphone apps that let you split just about any bill with a family member or friend and you can use Binance Coin to pay your share.
The Binance Exchange allocates a fifth of their profits each quarter to BNB buybacks, which are then burned. This means Binance Coin becomes gradually more scarce and helps underpin its value.
It's possible to trade BNB on a number of crypto exchanges (not just Binance).