Everything You Need to Know About BNB

In 2017, BNB was introduced through an Initial Coin Offering (ICO) at an issue of 1 ETH for 2700 BNB or 1 BTC for 20000 BNB. BNB is the native coin of BNB Smart Chain (former Binance Smart Chain) and BNB Beacon Chain (former Binance Chain). As per the BNB Academy website, though BNB was introduced via ICO, it does not provide a claim in the profit of Binance to a BNB owner, or it does not show it as an investment made in Binance.

Though most of the top cryptocurrency prices, including Bitcoin and Ethereum, have dipped in recent days, BNB still remains in green. BNB price has increased by 9% in the last seven days. As per records, BNB’s price is 24.4% more within one year than what it was on the same day the previous year. Presently, BNB is available in three forms – BNB BEP-2 on BNB Beacon Chain, BNB BEP-20 on BNB Smart Chain, and BNB ERC-20 on the Ethereum network.

According to the official Binance website, BNB is one of the most popular utility tokens. You can trade BNB just like any other cryptocurrency. You can also use BNB across various applications and use cases. Based on the daily trading volumes, Binance is also one of the biggest global crypto exchanges. BNB plays an integral role in facilitating the functioning of several projects in the Binance Chain ecosystem.

As per the Binance Academy website, BNB has the following use cases in the BNB Chain ecosystem:

  • You can pay reduced trading fees using BNB via Binance Exchange.
  • You can use BNB to pay the trading fees on Binance Decentralised Exchange (DEX).
  • You can use BNB to pay transaction fees on BNB Smart Chain and BNB Beacon Chain,
  • As a Binance Card of Binance Pay user, you can use BNB to pay for goods and services, applicable for online and offline in-store purchases.
  • You can use BNB to book your hotels and flights on the Travala.com website.
  • With BNB, you can take part in token sales hosted on the Binance Launchpad.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

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