BNB BNB Price

What is BNB (BNB)?

BNB, originally known as Binance Coin, is a cryptocurrency created by the Binance exchange, one of the largest cryptocurrency exchanges in the world. Launched in July 2017, BNB was initially an ERC-20 token on the Ethereum blockchain but later transitioned to Binance Chain as its native asset. The primary purpose of BNB is to facilitate trading on the Binance platform, allowing users to pay for transaction fees and participate in token sales on Binance Launchpad. As of 2024, BNB has a market capitalization that consistently ranks it among the top cryptocurrencies, making it a significant player in the crypto space.

Who are the Founders of BNB?

BNB was founded by Changpeng Zhao, commonly known as CZ, who is also the CEO of Binance. Zhao, a software developer and entrepreneur, has a background in finance and technology, having previously worked at Blockchain.info and as a co-founder of Fusion Systems, a high-frequency trading company. Alongside Zhao, the Binance team includes other notable figures like He Yi, who is the co-founder and CMO of Binance. The rapid growth of Binance and BNB can be attributed to their innovative approach to cryptocurrency trading and community engagement.

How does BNB Work?

BNB operates on the Binance Chain and serves multiple purposes within the Binance ecosystem. Users can utilize BNB for trading fee discounts on the Binance exchange, where using BNB can reduce transaction fees by up to 25%. Additionally, BNB plays a crucial role in token sales on Binance Launchpad, allowing users to purchase new tokens with BNB. The token follows a deflationary model, with Binance committing to buy back and burn a portion of BNB every quarter until 50% of the total supply (200 million BNB) is burned. This mechanism aims to increase scarcity and potentially enhance the value of the remaining tokens. Furthermore, BNB has expanded its use cases beyond Binance, being accepted for payments, trading, and even in decentralized finance (DeFi) applications, including yield farming and staking.

Top Use Cases of BNB

1. Trading Fee Discounts: Users can pay trading fees on Binance with BNB at a discounted rate, making trading more cost-effective.

2. Token Sales: BNB is used to participate in token sales on Binance Launchpad, allowing investors to access new cryptocurrencies.

3. Payment Options: Many merchants accept BNB as a payment method for goods and services, increasing its utility.

4. DeFi Applications: BNB is utilized in various DeFi platforms for yield farming, staking, and liquidity provision.

5. Travel and Entertainment: BNB can be used to book travel services through partnerships with platforms like Travala, as well as for online entertainment and gaming.

6. Charity Donations: BNB can be donated to various charitable causes through Binance Charity, enhancing its social impact.

How to Keep your BNB Safe?

Keeping BNB safe involves several best practices:

• Use Hardware Wallets: Store your BNB in a hardware wallet, such as Ledger or Trezor, to protect it from online threats.
• Enable Two-Factor Authentication (2FA): Always enable 2FA on your Binance account and any other platforms where you hold BNB to add an extra layer of security.
• Keep Software Updated: Regularly update your wallet software and ensure your devices are protected with the latest security patches.
• Be Cautious of Phishing Scams: Avoid clicking on suspicious links or providing personal information to unknown sources. Always access exchanges through their official websites.
• Backup Your Wallet: Maintain secure backups of your wallet’s private keys or recovery phrases in multiple locations to prevent loss of access to your funds.