Binance Coin – Crypto currency with its own platform

Binance Coin- is the crypto currency of the “Binance” trading platform. Binance is a Chinese crypto exchange on which only crypto currencies can be exchanged for other crypto currencies.

The term “Binance” is made up of “binary” and “finance”, which makes it clear that only digital means of payment are traded on the exchange. At the beginning of the year, the run on Binance was so great that its website was unable to accept new registrations for several days. The purpose of this development is to create a token that can be used to pay fees on the platform.

Binance Coin – What is this crypto currency for the Bitcoin trader?

The abbreviation for the Binance Coin is BNB. It is a token that can be used on the Binance exchange to be exchanged for other crypto currencies by the Bitcoin trader. Additional applications include the payment of trading, transaction and listing fees. The crypto currency is based on Ethereum’s ERC 20 Token Standard and used by Bitcoin trader.

For some time, 200 million BNB coins will be in circulation, later reduced to 100 million. Half of the 200 million coins were sold at the ICO. The ICO is the “Initial Coin Offering”, the first issue of coins in large quantities. A good 40 % remained with the developers of the coin and 10 % went to Angel investors. These are investors who bought a large number of coins all at once.

If one pays fees on the exchange stock exchange with the crypto currency, a discount results

In the first year of use the discount is 50 % on all fees, in the following year it is 25 %, in the third year again half as much, 12.5 % discount and in the fourth year 6.75 %. From the fifth year onwards there is no longer any discount on the payment of fees via NBB. The fees are paid for transactions and are calculated at 0.1% of the trade amount. This is the real purpose of the crypto currency, similar to the GAS of Neo-Coin.

In the course of time the marketplace wants to buy back 100 million coins. The tokens are to be devalued, which will increase the value of the remaining coins. Since the coins cannot be mined and no new coins are generated, the figure will remain at 100 million.