Binance Coin is the cryptocurrency fuelled by Binance, a cryptocurrency exchange that provides a platform for the trading of cryptocurrency – cryptocurrency trading.
Uses of Binance Coin include payment for exchange fees stemming from trading fees and withdrawal fees charged by Binance exchange. Binance Coins can also be used to invest in ICOs launched on Binance Launchpad.
Additional uses of Binance Coin include the ability to purchase virtual gifts and use Binance Coin with Monaco mobile app or Monaco Visa card.
Unlike a vast majority of cryptocurrencies, Binance has a Binance Coin buy-back and destroy scheme, where Binance will use 20% of its quarterly profits to buy back a total 50% of all BNB coins over time, equivalent to 100 million coins, to leave 100 million Binance Coins in circulation.
Binance was founded in September 2015 by Binance CEO Changpeng Zhao, with 200 million Binance Coins issued at launch.
Binance has a blockchain ecosystem comprised of Exchange, Labs, Launchpad and Info, and is also considered to be one of the world’s largest cryptocurrency exchanges.
Binance Labs: A social impact fund and initiative to incubate, invest and empower blockchain and cryptocurrency entrepreneurs, projects and communities.
- Incubation of entrepreneurs and projects.
- Make direct investments.
- Collaborate with industry partners and participate as LP.
- Support entrepreneurs in:
- Go-to-market strategy and BD.
- Token models and distribution.
- Technical Review.
- Talent Recruiting.
Binance Launchpad: Allows initial coin offerings to go straight to market that is not only a positive for the more viable projects and start-ups that Binance is willing to approve for Launchpad, but also increases the number of tokens/coins available on the Binance exchange.
With Binance carrying out the research ahead of approving an initial coin offering for the Binance Launchpad, investors are able to invest into an ICO using either Ether or Binance Coin.
Binance Info: Provides underlying information on each individual coins, including price volumes, prices, market caps, circulation supplies, in addition to news feeds relating to the respective coins and white papers.
Binance Exchange: Binance offers a centralized exchange platform and a decentralized exchange driven by a public blockchain called Binance Chain, with Binance Coin native to its blockchain having previously been an ERC20 token run on the Ethereum network. The centralized and decentralized exchanges co-exist and complement one another. Binance Chain focuses on trading and transferring blockchain assets.
On the Binance exchange, discount rates to exchange fees are offered to those you pay for fees using Binance Coins. In year 1 of Binance coin release, the discount rate is 50% and then has a yearly half-life through to year 5, where no further discounts are offered.
Some distinct differences and characteristics of Binance Coin include:
- There are a finite number Binance Coins that will reduce by 50% over time, with Binance’s buy-back and destroy scheme.
- Binance Coins are used for covering exchange fees and to invest in initial coin offerings on Binance Launchpad.
- Binance Chain offers a decentralized exchange that runs parallel to the older and more established centralized exchange.
- There are no physical Binance Coins, only virtual and also known as BNB Tokens.
