BNB: All You Need to Know
How much is 1 BNB?
How can I buy BNB?
Is BNB a good investment?
These are all questions we’ve seen crypto enthusiasts ask on google and other search engines, and we will try to answer them in this article. We’ll highlight everything you should know about Binance Coin, its future in the cryptocurrency market, and how you can start trading it. 👩🏽🏫
The coin was developed by the founder of the leading global cryptocurrency exchange Binance, Changpen Zhao, as a decentralized digital asset to power the ecosystem of the exchange. BNB now has a market capitalization of $38,727,127,021. 💰
Origin of BNB
BNB was first distributed through an initial coin offering (ICO) on the Ethereum network as a utility token for lower trading fees in July 2017. Since then, its use has expanded to a lot more to include payments for transaction fees (on the Binance Chain), travel bookings, entertainment, online services, and financial services.
In April 2019, BNB moved from Ethereum to Binance’s own network, Binance Chain. 💪🏾
BNB Rapid Fire
- This digital currency initially had a maximum supply of 200 million, but Binance periodically burns some of the tokens available to increase the value of the asset as time goes by.
- BNB’s market cap as of May 1st was over $63 billion ranking behind only Bitcoin, Ethereum, and USD Tether.
- BNB hit an all-time high of $686.31 on May 10, 2021, and had an all-time low of $0.039817697188 on Oct 19, 2017
Binance Coin (BNB) Burning
After every three months, Binance utilizes 20 percent of its total profits to burn or permanently destroy BNB. The latest burning of Binance Coins took place on 15th January 2022 when the platform got rid of 1,099,888 of its tokens available in its treasury.
It’s a reduction process that increases the value of the cryptocurrency over a period of time.
Here are a few frequently asked questions relating to Binance Coin.
1. What is the Life Cycle of BNB?
It has a circulating supply of 163,276,975 and a maximum supply of 165,116,760 BNB coins 🌀
2. Is Binance Coin secure?
Binance Coin is secured through a network of 11 validation nodes. Even though it is secure, this is a highly centralized validation network meaning that all points of validation belong to a single company. 🔒
3. Why Should I own BNB?
BNB can be a great investment in 2022 for all long-term investors. Remember, it’s a highly volatile cryptocurrency that can help you to maximize your profits. So do your own research (DYOR).
P.s this is not financial advice. 😉
If you would like to buy BNB you can do so at www.Bundle.africa or via the mobile apps on iOS and the Google Play Store.
Jargons dictionary 📖
Initial Coin Offering(ICO): An Initial Coin Offering is the way entrepreneurs raise funds for new cryptocurrencies.
Burning: Burning is a crypto term that means taking a certain amount of tokens of an asset out of circulation to increase the value of the existing tokens.
Validation Nodes: A validation node is a special type of building block that is responsible for verifying, voting on, and storing records of transactions on a blockchain network.
Validation Network: a validation network is a series of validation nodes.
Market Capitalization: Market capitalization refers to the total dollar market value of an asset.