The Binance exchange has a native coin that is rapidly becoming known as “the trader’s coin.” As a cryptocurrency exchange, Binance had its in-house coin from the ICO. Traded as BNB, the altcoin has value as a tradable pair, but functions mostly as a facilitating token on the exchange itself. Users holding BNB get discounts that others don’t, and the coin is rising in value on its own merits as well.
Binance is rated one of the top digital exchanges in the world, and many investors are fiercely loyal to the platform. With a good offering on pairs, Binance lists most of the sterling altcoins of the here and now, constantly reviewing its offer.
Although excluding any kind of fiat transaction, being strictly a cryptocurrency exchange, rising numbers at Binance and its competitors show that this model is well received by many investors. The platform minted its own ERC-20 (the BNB coin) and traders tying into the exchange’s token system score a 0.50% reduction on trading fees. This stands for the first year, after which there are still discount offers for coin holders for up to four years.
Perhaps more so than other projects of a similar nature, Binance and thus the BNB token enjoys a large social media following on Facebook and Twitter, with frequent contests that see the top exchange traders compete with each other for best returns of various altcoins.
While at first sight it may appear a complicating protocol for newcomers, the BNB coin is gaining in popularity and understanding. Due largely to the Binance exchange’s publicity, the concept is becoming entrenched among newcomers and hale enthusiasts alike. Many users choose Binance mainly because of the discounts the token affords on the exchange, and savvy observers note, too, that the coin’s scarcity is rising.
How Does BNB Benefit Traders?
Those who benefit the most are users who frequently trade on the platform while holding the BNB token. It’s entirely possible to utilize the exchange without buying into the native coin, yet most users immediately see the value to be gleaned from the discounts offered to dedicated users. Added to that, any casual search will show a history of its true utility and rising value.
Although there are altcoins with greater value and quicker trajectories, the fact that BNB is the coin of a thriving exchange gives many users the balance of movement and surety they seek. By the same token, all puns intended, probably as many traders hold some BNB on the exchange to secure discounts, but are not actively eyeing the altcoin as an investment.
While they are also available elsewhere, most traders follow the logic of buying BNB on the Binance exchange. Of course, storing them on the exchange identifies users as privileged traders that qualify for discounted rates.
The BNB has many applications, primarily as the fuel that drives the hotbed exchange. Groundbreaking cryptocurrency and payments platform, Monaco, has extended its cooperation with Binance to enable a mutual exchange of value. Binance has listed Monaco’s MCO token, and in return, Monaco will support the Binance’s BNB token.
This agreement includes the Monaco Mobile App and the Monaco Visa Card, and Binance also hosts the MCO/BNB trading pair for the benefit of both parties. Various promotional overtures also take place, where the companies publicize one another to their respective user bases.
In a spate of mutual admiration, the partnership seems to be growing all round month on month. Although both are fintech projects (Monaco's stated aim is to be “bringing cryptocurrency to every wallet”), there is an air of association that seems novel for the industry. Both projects are perfect add-ons for one another, and both seem equally valuable and continue to grow.
Many users recognize the CEO, Changpeng Zhao, as an experienced and savvy presence in the arena. He is also the founder of OKCoin, the well-known Bitcoin exchange, and BijiTech as well. A possible reason why the exchange and its coin seem to be enjoying an enviable uptake is that fellow co-founder of OKCoin Yi He is also a top-tier cryptocurrency advisor.
The technical build of the exchange and its token protocols have found a sweet spot with traders who find the package a premier experience. Due to a close relationship with NEO, users can also withdraw NEO and Gas from the exchange at no surcharge, unlike many competitors.
Other benefits, like the fact that the Uplive platform supports BNB so that users can buy virtual gifts, seem to come along regularly on the exchange. This is in contrast to a far more staid approach by many of its peers.
Binance Coin Conclusion
BNB seems emblematic of the “middle way” option for altcoins. Respectable and dynamic, the Binance exchange and its token make up a sleek, professional package. Although the exchange has suffered its fair share of complaints and criticism, customer support is better than average and it appears at a glance that no serious allegations have arisen and remained unresolved.
A total supply of 200 million coins was minted at the outset, yet Binance is using 20 percent of quarterly profits to buy back and burn BNB tokens. They’ll perpetuate this process until a total of 50 percent of issued tokens have been returned in this way. With a quickly growing market cap, the exchange has flown from the start and traders would be hard pressed to find a similar marriage of simplicity and diversity in altcoin trading.
As all of the buy-back transactions will be displayed on the blockchain, the company has more than energy. There is a manifestly solid feel to the project, and most commentators will understand why after a day or two using the platform.
It’s important that investors establish costs at the outset, when setting up on Binance. Those who buy into the BNB altcoin, tied as it is to the fate of the exchange, are mostly HODL types, but the fundamentals are in place as well. Were Binance a bricks-and-mortar establishment, shareholders would point to figures that show uptake, growth and profits. Unlike many of its competitors, Binance is emerging as a polished exchange with a latent energy in its token.