There are thousands of cryptocurrency available in the crypto space today. However, not all can be considered reliable for investment in digital assets.
In this series of Know Your Digital Asset (KYDA) series, we will explore cryptocurrencies in which are widely accepted by regulated exchanges and with real-case use.
What is Binance Coin (BNB)?
Binance Coin (BNB) is the native coin for the Binance ecosystem, ranging from different products and services. It was launched in 2017 through an Initial Coin Offering (ICO) with an initial supply of 200 million. However, over time the Binance Quarterly Coin Burn will take place and reduce the total BNB supply to 100 million.
Initially, BNB is running on the Ethereum blockchain as an ERC-20 token. In April 2019, Binance announced the launch of its mainnet and migrating all the BNB to the Binance Chain.
Interestingly, BNB functions increased together with Binance over time, especially when Binance announced acquisitions or partnerships with other companies.
Holders can use BNB for;
- Pay trading fees in Binance Exchange
- Make or receive payments
- Airfare and hotel booking
- Participate in virtual entertainment and economy
- Hodl to receive airdrops
Visit here for the full list of participating merchants and partners.
Binance Exponential Growth
While there are hundreds of exchanges out there, Binance is at a different level of growth. Started in 2017, BNB is currently sitting at $4.1 billion in market capitalization based on the data from CoinGecko.
Apart from that, the rapid growth reflects the steady adoptions and acceptance of cryptocurrencies together with blockchain technology globally. It should show plenty of insights into the coming years for businesses and governments.
For Malaysians, BNB is not an approved digital asset and not available in any local Digital Asset Exchanges (DAX). Additionally, Binance is currently on the Securities Commission Malaysia (SC) alert list for operating a recognized market without authorization from SC.
It is necessary to understand and manage risks in any form of investment. Isn’t it?