What is BNB crypto, Binance’s token ?
The BNB Binance Coin, which is more often found under the name BNB, is the native token of the famous Binance platform. By developing the Binance Coin, the latter’s goal was to fuel trading operations and develop an entire crypto ecosystem around its own token.
The main interest of this so-called “utility” token is to benefit from the services offered by Binance. Including paying reduced trading fees, buying NFTs and borrowing cryptos among others.
In addition, it is also possible to participate in ICOs (Initial Coin Offering) using BNB through the Binance Launchpad. You can thus participate in the financing of new blockchains.
BNB was created at the same time as the platform, in July 2017. Most of its developers are based in China, such as the famous Changpeng Zhao, CEO and founder of the platform.
How does BNB work ?
When it was created, 200 million Binance Coin tokens were offered for sale on the market. 20 million for the main investors, 80 million more for various contributors to the project and the remaining 100 million for individuals who had taken part in the ICO.
Initially, the BNB relied on the ERC20 token standard of the Ethereum blockchain infrastructure, because they had the particularity of being able to store and retain value. Binance subsequently created and launched its own mainnet: Binance Chain.
ERC20 tokens were replaced by BNB BEP2 tokens as of April 2019.
However, this token cannot be mined using the Proof of Stake or Proof of Work protocol.
Its protocol is rather based on the consensus method of Byzantine Fault Tolerance (BFT). This one benefits from validators who will earn BNB by verifying network blocks. With the maximum supply being approximately 200 million Binance Coin tokens, it is one of the most reliable tokens available on the market.
It is important to clarify that Binance plans to buy back BNB tokens and burn them until there are only 100 million left. This is called “coin burn”. The objective behind this maneuver is simple. This is to increase the rarity of tokens and therefore, to boost their value by reducing the supply.
What is the historical and current price of BNB ?
When it was created in 2017, the BNB remained relatively stable for several years, with a price fluctuating between 5 and 32 euros on average. It is only in 2021 that things really start to change. A meteoric rise in April 2021 takes the token from 31 to over 200 euros.
Prices then continue to move, but the BNB never drops below the 200 euro mark. It then stabilized at 461 euros, an increase of almost 1300% in a single year !
Compared to the two main cryptocurrencies (BTC and ETH), this growth is more than impressive. BTC having “only” increased by 73% and ETH by 455% over the same year.
The success of the token is undoubtedly linked to the success of its issuing platform : Binance. Its popularity rating increases at the rate of the intensification of exchanges on the site.
Currently, Binance Coin remains quite stable and enjoys a large trading volume. At a time when the others are falling, BNB is rising slightly. Its characteristics therefore make it an ideal crypto for day trading (from day-to-day purchase-resale).
Binance Coin prediction
If we were to make a prediction on the price of Binance Coin, we would say that its price will continue to rise. Taking coin burning operations into account, the supply will decrease and the price of the token is bound to rise, with an upside potential relatively close to that of Ethereum.
How and where to buy BNB ?
Binance Coin is offered on different crypto platforms, the most suitable being directly Binance, its parent platform. The site having made a name for itself among the best crypto exchange platforms in the world, you can directly buy your tokens in euros with a credit card.
The exchange platform has gradually become essential, so that on a global scale, its volume of transactions allows it to reach first place.
However, if you are looking for alternatives to Binance, several other platforms can allow you to invest in BNB :
In general, all the best-known brokers and exchanges in the crypto universe will allow you to buy BNB with ease.
Our opinion on BNB
With BNB, Binance has been able to hold its own against more rigid cryptos. Having become one of the 5 most capitalized cryptos, the Binance Coin is now essential. For some, it may be a high-risk investment, but for others, the profitability of the token more than compensates for the risks involved.
The future of BNB crypto Binance Coin
In this regard, many specialists are betting on a meteoric rise in BNB. According to Trading Beasts, it could reach 2204 euros in 2028!
The ecosystem created by Binance being rock solid, its competitive advantage makes BNB a crypto not to be overlooked. Thanks to its low fees – compared to Ethereum and other cryptos – BNB is establishing itself as a wise long-term crypto investment.
Some will argue that BNB remains entirely dependent on the platform, but it brings a lot of interesting features, with very low fees, to democratize crypto.
The Binance environment continues to grow in popularity, so the growth of its token seems obvious. However, it should be kept in mind that the BNB, as low as it is, remains a cryptocurrency like the others. You must take your precautions so as not to invest more than you can afford to lose.