Coin of the Week: BNB
Binance was launched in July 2017 and is based on daily trading volume, the world's biggest cryptocurrency exchange.
Globally, Binance wants to bring cryptocurrency exchanges to the forefront of financial activity. Binance's name relates to this new paradigm of global finance - Binary Finance, or Binance.
Binance is not only the largest cryptocurrency exchange globally, it also offers a wide array of functions to its users. Binance is known for bringing new-age finance to the world through projects such as Binance Chain, Binance Smart Chain, Binance Academy, Trust Wallet, and Research. Binance Coin plays a critical role in many of the project's sub-projects.
Binance Founders: Who Are They?
Binance's founder and CEO is Changpeng Zhao. Before founding Binance, Zhao served as head of tradebook futures development at Bloomberg. After four years with the company, he joined Fusion Systems as a partner.
He has been working on blockchain technology and cryptocurrencies since 2013. In 2015, he founded BijieTech after becoming head of development at Blockchain. Binance was officially launched by Zhao in 2017, and Zhao has been the company's CEO since then.
Yi He is the co-founder and chief marketing officer of Binance. The then television anchor and presenter started her career with China Travel TV in 2012. At the time, Yi co-founded OKCoin, which was the biggest fiat-to-crypto exchange in China. Together, she and Changpeng Zhao built Binance, the largest crypto exchange in the world.
Binance: What Makes It Unique?
Blockchain-based networks are at the heart of Binance's ecosystem. They have developed into one of the largest crypto exchanges in several countries, and their side businesses have attracted a lot of attention.
Binance's drive for development is its biggest competitive advantage. The company started in 2017 only as a crypto exchange, but today Binance has a diverse set of services. On its website, the company claims its mission is to become an infrastructure service provider for the entire blockchain ecosystem.
As a result of the release of Binance Coin, investor interest in the token has also risen. BNB experienced a price increase that put it on the map of enterprise investors at the beginning of 2021.
Circulating Binance (BNB) coins: How many are there?
As of September 2021, there are 168,137,036 BNB coins in circulation out of an initial supply of 200,000,000.
In order to reduce the total Binance Coin supply by half, Binance conducts quarterly burnings of the Binance Coin. The 16th quarterly burning was conducted on July 18, 2021, worth $390 million at the time of burning in Binance Coin price. However, it wasn't the most expensive burn - on April 16, 2021, the exchange burned nearly $600 million worth, based on the price of Binance Coin at the time of burning.
Binance's whitepaper indicates that half of the maximum supply of BNB tokens were allocated to the initial coin offering (ICO) and public sale of the token. Binance raised $15 million in funding during the ICO, with the Binance Coin price at $0.10 during the ICO. At the current price of Binance Coin, that represents almost a 4200X return on investment (ROI). Around 80,000,000 BNB coins, or another 40% of the total supply, were distributed among the founding members and team. Another 10% of the maximum supply was distributed among angel investors.
How Is the Binance Network Secured?
Binance coin began as a traditional ERC-20 token on the Ethereum blockchain. Eventually, the company introduced its own blockchain, and coins began to be issued by Tendermint's byzantine-fault-tolerant consensus (BFT) system.
Tokens based on the ERC-20 standard relies on the Proof-of-Stake consensus, which makes them very scalable, and allows for the creation of smart contracts. Smart contracts are not supported by Binance's blockchain, unlike PoS. A Bitcoin blockchain uses a proof-of-work consensus, which is far more limited and consumes more electricity and computing power.
Where Can You Buy Binance (BNB)?
By Warren Manuel
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*Curated from different sources.