How To Buy Binance Coin – Forbes Advisor Australia

Binance Coin (BNB) is the native cryptocurrency of the BNB Smart Chain and has ties to crypto exchange giant Binance. Initially launched via an Initial Coin Offering (ICO) in July 2017, BNB was introduced to facilitate affordable trading fees on the Binance platform. Over time, its utility has expanded beyond just fee discounts, growing with Binance’s evolution into a comprehensive crypto ecosystem far beyond Binance’s centralised exchange.

The origins of Binance Coin are intertwined with the history of the Binance exchange itself. With an ICO price of $0.15 per token, BNB quickly became integral to Binance’s platform, offering users reduced trading fees for holding and staking the token. The funds raised from the ICO were pivotal in developing and branding the exchange. Binance Coin underwent significant technical evolution, transitioning from an ERC-20 token on the Ethereum blockchain to its native blockchain, initially called Binance Chain, in 2019.

This move aimed to optimise trading performance and support the decentralised exchange Binance DEX. The chain has developed to become one of the most popular blockchains due to its low fees and fast transactions, and it has progressively distanced itself from the Binance exchange to become its own entity entirely.

Despite this, BNB’s utility extends across various services within the Binance ecosystem, from reducing trading fees to staking on the exchange. It is also used for transaction fees and governance on the BNB Smart Chain. Additionally, Binance employs a unique strategy of periodically “burning” BNB, reducing its total supply to positively influence its value. These quarterly burns aim to remove 100 million BNB, or half of the token supply, from the circulating supply, enhancing scarcity and potential value.

As of March 7, 2024, BNB is trading at $US430, a gain of over 286,566% from the initial ICO.