Binance Coin, or BNB, is the native coin of the Binance chain. It has several uses, from paying for trading fees to booking hotels and more. It is a scarce currency, meaning many people hold it to wait for the price to increase.
Read on to learn more about this cryptocurrency, including information on its uses, stock price history, and some interesting facts you might not know.
History of Binance Coin
Binance Coin is a cryptocurrency traded on Binance’s platform and launched as an ICO, or initial coin offering, at 15 cents apiece.
Binance Coin’s founders intended to design a native crypto asset that people could use to pay trader fees. You can use it to pay Binance’s 0.1% per-trade fee at a discount, in addition to its withdrawal fee. Users can also trade BNB for other cryptocurrencies, such as Ethereum and Litecoin.
You can use this cryptocurrency for many things beyond the Binance exchange, such as:
- Trading: This cryptocurrency can be used to trade for other cryptocurrencies on various exchanges.
- Saving money on the Binance Exchange:Users can take advantage of a discount to pay for transactions on Binance’s exchange. You can pay trading fees using the assets you trade, or you can pay for them with BNB at a discount.
- Paying for credit cards: Users can pay credit card bills on Crypto.com.
- Other online purchases: Users can purchase things such as flights, hotels, entertainment, lottery tickets, and more online.
- In-person purchases: You can also use the Binance Card or Binance Pay to pay for goods and services online and in-store.
- Investment: Several platforms let investors invest in stocks and other assets with BNB.
Exclusive initial trading occurred from June 26th to July 3rd, 2017. The company opened the Binance Exchange to all traders on July 14th, and the cryptocurrency eventually became Binance’s native trading currency.
More companies and merchants are beginning to use BNB as a payment method as time goes on.
Stock Price History
When its creators first introduced Binance Coin in April 2017, it sold for $0.11. Over time, the trend of the stock price has been generally positive with some fluctuations.
As of March 29th, 2021, the stock price is $273.98 (a total increase of over 240,000% over nearly four years.
Binance Coin does not pay dividends. However, you can trade at a discount on Binance’s site if you hold their cryptocurrency. It does not distribute dividends like most stocks.
Overall, it is rare to find a cryptocurrency company that distributes dividends. Instead, you will make money from your Binance Coin if the value goes up after buying it.
You can also get money from this cryptocurrency if you hold onto it while it becomes more scarce through coin burns.
Interesting Facts About Binance Coin
- As part of the ICO in July 2017, 100 million BNB tokens were distributed among the founding team (40%), angel investors (10%), and public sale (50%). They were initially sold at 15 cents per token, raising $15 million.
- Binance is the world’s third most popular cryptocurrency.
- Binance’s market cap is over $50 billion.
- Binance performs quarterly coin burns (the last of which was on October 17th, 2020) to ensure the cryptocurrency supply remains finite.
BNB has many uses, such as paying for travel expenses and buying virtual gifts. Some people choose to hold onto it and wait for the price to increase.
Regardless of what you use it for, BNB is a great currency to hold at a relatively low price.