What is BNB?

BNB, or Binance Coin, is a cryptocurrency created by the Binance exchange. It was launched in 2017 as an ERC-20 token on the Ethereum blockchain, and later transitioned to its own native blockchain, Binance Chain, in 2019.

BNB was created with a dual purpose: as a means of payment for fees on the Binance exchange, and as a utility token for the Binance ecosystem. When used to pay for trading fees on the Binance exchange, users can receive a discount, making Binance more competitive with other cryptocurrency exchanges that charge higher fees. Additionally, Binance has plans to expand the use cases for BNB beyond just trading fees, such as being used as a currency for paying for goods and services in the Binance ecosystem.

Another important use case for BNB is as a base currency on the Binance exchange. This means that Binance users can trade a variety of other cryptocurrencies against BNB, providing additional liquidity and stability to the Binance market.

In terms of investment potential, Binance has committed to using 20% of its quarterly profits to buy back and “burn” BNB tokens, reducing the overall supply of BNB and potentially increasing demand for the token. This, combined with its growing use cases and the increasing popularity of the Binance exchange, make BNB an attractive option for those looking to invest in the cryptocurrency market.

Overall, Binance Coin is a utility token that provides benefits for users of the Binance exchange and the Binance ecosystem. Its use as a base currency on the exchange, combined with its growing use cases, make it an attractive investment opportunity for those interested in the cryptocurrency market.