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What is Binance Coin (BNB) & the importance for the Binance DEX

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The particular cryptocurrency exchange Binance opened in mid-July 2017. Simultaneously, Binance also held its ICO for the Binance Gold coin (BNB) to finance the successful launch of the exchange.

The trade was originally founded in China. But after the regulating climate changed there, Binance moved its servers and headquarters to Japan. Within 2017, the platform achieved massive success within a very short time and within half annually rose to become the largest cryptocurrency exchange by trading quantity.

The creator, Changpeng Zhao (“ CZ” ) , has a vision to provide company services to every single person in the world. Since July 2018 there have been over 10 mil registered users on the platform, over 150 tradable crypto foreign currencies and more than 380 detailed trading pairs.

What is the Binance Coin (BNB)?

The Binance Coin (BNB) was created from the exchange. Binance has issued a total of 200 million BNBs. Half of this was distributed through a public ICO, forty percent went to the Binance group and 10% was sold to angel investors. The particular ICO took place from 14 to twenty-seven July 2017, with all 100 million BNBs sold.

BNB can be used on the crypto currency exchange as a means of payment pertaining to fees. In order to boost the ICO and thus the financing from the project, Binance has carried out to grant discounts in the use of BNBs for the very first four years. Thus, users of the exchange who utilize the BNB receive 50% upon all fees. In the second year it is still 25 %, in the third year 12. 5 % and in the fourth year 6. 75 percent. In addition , BNBs also serve as loyalty programmes. BNB token holders can also receive other rewards within the exchange.

In addition , as part of the whitened paper on the Binance Coin, the company has undertaken to buy back half of all BNBs – 100 million – and then destroy them (“ Binance Coin Burn “ ). This can be a thank you to the early traders who have supported Binance from your very beginning. The purpose behind this really is that as the supply of BNBs decreases, the price of a BNB token will increase. The traders of BNB are rewarded by a rising BNB price.

The commitment is that Binance will purchase back 20% of the company’ s profits in BNBs each quarter and then burn off the BNB until eventually only 50% of all preliminary BNBs are in circulation. The particular so-called “ Binance Coin Burn” is always announced afterwards by Binance. The first “ Coin Burn” took place in October 2017 plus destroyed 986, 000 BNBs. During the second Binance Coin Burn, 1 . 8 million BNBs were burned, while the third burned 2 . two million.

Binance Decentralized Exchange

In March 2018, Binance announced the development of a decentralized cryptocurrency swap where various crypto-currencies can be exchanged without an intermediary. Although there are already a number of decentralized exchanges. However , these have had little success up to now. The Binance Decentralized Swap (Binance DEX) may have a chance to change this by using the prestigious name.

From the user’ s perspective, decentralised exchanges have considerable advantages. Probably the most important stage is that users retain control over their own crypto currencies by means of the private key. In addition , the trade is also anonymous, since there is no Know Your own Customer (KYC). A ban on crypto currencies is not possible through decentralized exchanges, because there is no single point associated with failure. There’ s no central server a federal government can take out. Furthermore, there is no company that can be banned by a government. Furthermore, a DEX is cheaper for users, as there are no charges.

If Binance DEX were to be a similar success to Binance, the Binance Coin (BNB) on DEX could once again assume numerous functions and tasks. The 30% rise in BNB’ s share price within March 2018, when Binance DEX was announced, should also be interpreted in this lighting.

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