Binance coin (BNB) is a cryptocurrency of the Binance platform that is designed exclusively for cryptocurrency trading. The name ‘Binance’ is a mixture of the words ‘binary’ and ‘finance’. This, the startup name shows that the exchange is meant only for cryptocurrencies against each other (with no possibility of fiat currency trading).
Creatively made and driven by the community, this coin is basically a pure cryptocurrency exchange that plans to create a decentralized exchange for all blockchain users. However, Binance (BNB) is also designed to offer special features and give power to the decentralized exchange, which puts it on the list of leading cryptocurrencies.
The main purpose of the BNB coin was to allow traders to receive significant discounts on trading fees when using BNB to pay for them – with recurring discounts in regards to listing fees, withdrawal fees, exchange fees, and other fees. (BNB) had a limited supply of 200 million but the Malta-based exchange later said that it would leave just 100 million BNB in circulation.
Binance Coin (BNB) has managed to outperform all of the top 20 cryptocurrencies by an incredible rate and has become a part of the top 10 cryptocurrencies for the first time ever. One of the factors for this increase is possibly the decreasing circulating supply, its performance during the bear market and its decentralization. Of course, there is a multi-billion dollar business standing behind it. Binance burns the circulating supply of the coin every quarter. BNB was initially issued as a way to finance the exchange but after Binance become one of the best exchanges out there, it used the 20 percent of the profits to buy back the BNB and decrease the supply of the asset.
The BNB coin is quickly gaining popularity so we better watch it closely!