Binance Coin (BNB) is a crypto asset that is again really rising in the last week of February 2021. In the past week, BNB assets rose 119%! So, for those of you who don't know what Binance coin is or are trying to invest in BNB, see this interesting article to the end
Binance coin (BNB) is a crypto asset issued by the Binance Exchange, and traded under the symbol BNB. The BNB coin is an ERC-20 token type that runs on the Ethereum blockchain. Well, this BNB has a total supply of 200 million BNB tokens. Binance exchange itself is the number one crypto exchange when viewed from the volume of transactions and the number of active users.
At the beginning of its development, the BNB coin was intended only to support their exchange operations. This is because, BNB has many utilities that include payment for trading fees, exchange fees, listing fees, and other fees that are listed on the Binance exchange.
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quoted from Investopedia, in the first year of its launch, Binance provided a 50% discount for traders who trade via BNB, and the discount will continue to decrease for the next five years from 2017 to 2022 from 50%, 25%, 12 , 5%, 6.25 ,and entering its fifth year the deduction is no longer valid.The popularity of Binance coin is not only due to the discount it gives traders when trading with this coin on the Binance exchange. instead, BNB can be used to invest in ICOs listed through the Binance Cryptocurrency Launchpad which will later be listed on the Binance exchange.
In addition, BNB coins are increasingly in demand because they have collaborated with various platforms such as cryptocurrency buying and selling services, video streaming, payments, and mobile applications. You can also get BNB coins through the Pintu cryptocurrency trading application.
To keep its value competitive, Binance performs a burn process ** every four months. Binance will buy 50% of the tokens that are already on the market. If the total BNB supply is 200 million, it means that Binance will buy back 50% of its tokens, which is 100 million BNB tokens.
BNB token buybacks come from 20% of Binance's profits. in which, the 100 million BNB tokens that Binance plans to buy will gradually be burned and destroyed.
In mid-April 2018, Binance announced that it had completed burning 2,220,314 BNB tokens (approximately $ 30 million). the purpose of this burning is to reduce the rate of inflation. The BNB value will increase if the supply decreases and the demand is stable or continues to increase. The destruction or burning of the BNB tokens increasing according to the scheduled shows the profitability of the Binance exchange.