A Brief History of Binance Coin (BNB)

    Tanya Sharma
    Tanya Sharma

    Updated on January 10, 2023 02:20 PM

    Published on December 08, 2022 07:09 PM

    Binance Coin (BNB) is a cryptocurrency that can be used to trade on and pay fees on the cryptocurrency exchange Binance, which is the largest crypto exchange as of January 2018 processing more than 1.4 million transactions per second.

    A Brief History of Binance Coin (BNB)
    Source: StormGain

    The Binance Coin (BNB) is a digital asset that trades under the BNB sign and is individually listed on the Binance exchange platform. Established in 2017, blockchain is a scientific algorithm and resilient technology. The entire ecosystem is structured to support a range of utilities such as trading fees, exchange fees, listing costs, and so on.

    BNB's popularity stems from a variety of variables, the most important of which is that it maintains 1 billion trade volumes around the clock. Binance's future appears to promise profitable opportunities. To bring stability and avoid unexpected market movements, BNB will be burned in a phased procedure.

    The fundamental goal of Binance Exchange Founder Changpeng Zhao and Co-Founder Roger Wang initiating this project was to alleviate different trading issues that existed in the cryptocurrency market.

    BNB's founders strategically implemented their long-term strategy, and the company now competes with numerous other cryptocurrency exchanges. Binance Loans provides a variety of alternatives for supported crypto assets based on market conditions and internal risk management.

    What is Binance Coin (BNB)? 

    Binance coin, which trades under the sign BNB was originally built on the Ethereum network, BNB is now the native currency of Binance's blockchain, the Binance chain.

    Each quarter, Binance spends one-fifth of its revenues to repurchase and "burn," or permanently destroy, the Binance coins it has in its treasury. BNB was developed in 2017 as a utility token for reduced trading fees, but its usage has now grown to include paying for transaction fees (on the Binance Chain), booking travel, enjoying entertainment, using online services, and accessing financial services.

    BNB ranked fifth in terms of market capitalization as of May 28, 2022, behind only Bitcoin, Ethereum, USD Tether, and USD Coin.

    The value of BNB fluctuates as it is used and traded, just like other digital assets available on the market. BNB can be held by users in suitable wallets off of cryptocurrency exchanges and sent directly to others for payments or other purposes.

    Technically speaking, the Binance layer-1 blockchain is combined to create the BNB Chain (previously the Binance Smart Chain and the Binance Chain). Binance's decentralized exchange (DEX), Binance DEX, was built on the newly formed BNB chain, which was designed by Binance for the blockchain's best performance when it comes to trading on-chain.

    Additionally, BNB chain transactions are powered by the "Build and Build"-themed blockchain gas token (previously known as Binance Coin).

    The BNB beacon chain and BNB Smart Chain make up the BNB chain. The former is concentrated on the governance of the BNB Chain, which enables BNB holders to take part in staking and voting. The latter is a consensus layer that is compatible with the Ethereum Virtual Machine and contains hubs for many chains.

    History of BNB: From a reward token in 2017 to an ecosystem in 2019.

    BNB was first introduced as an addition to the trading platform, which is the most popular cryptocurrency exchange in the world. It initially operated as an ERC-20 token on the Ethereum blockchain network, providing owners with benefits including lower trading fees, affiliate bonuses, or a lottery ticket system (dubbed "Launchpad") that allowed users to participate in fresh, Binance-selected cryptocurrency projects.

    But in 2019, BNB transitioned away from the Ethereum network and onto Binance's blockchain, known as Binance Smart Chain or BSC (called BNB Chain since February 2022). Here, BNB began to support a chain that first did not focus on hosting decentralized applications but instead focused on having a fast transaction speed and the capacity to handle massive volumes of traffic.

    It was released in July 2017 as part of an initial coin offering (ICO) and has a strict cap of 200 million BNB tokens. It offered 20% of its BNB tokens, or 20 million, to angel investors, 40% of its tokens, or 80 million, to the founding team, and the remaining 50%, or 100 million, to the various ICO participants.

    BNB Burning

    One-third of the cash raised during the ICO process went toward building the Binance platform and making required improvements to the Binance ecosystem, while the remaining two-thirds were allocated to branding and marketing for Binance.

    Even though 100 million Binance tokens were initially made available during the ICO, the current supply is less. To permanently destroy the Binance coins it has in its treasury, or "burn," one-fifth of quarterly revenues are used by Binance to repurchase them.

    These burning incidents have been periodically carried out by Binance. On April 15, 2021, Binance burned 1,099,888 BNB in total, amounting to $595,314,380 in the USD value of tokens. This was the most recent BNB burn. It is the highest quarterly BNB burn Binance has ever experienced in terms of money. BNB is now available in a total supply of 169,432,937 as opposed to 170,532,825 before.

    BNB elements : DeFi and NFTs

    However, BSC made tremendous progress in 2021, in part because of Ethereum's high gas prices, heavy traffic, and increased interest in both Decentralized Finance (Defi) and NFTs.

    Binance Smart Chain subsequently emerged as a competitive Ethereum alternative, much like Cardano, Solana, and Terra. For instance, in early 2022, the total value locked (TVL) of BNB's blockchain within DeFi was third only to that of Terra and Ethereum.

    GameFi, or "play-to-earn" blockchain games driven by cryptocurrency, is another sector where Binance's blockchain and token have a huge impact. The blockchain that powers BNB is also used by some of the more well-known and well-liked NFT games, such as Alien Worlds and Axie Infinity.

    Binance and governance

    After starting its business in 2017, Binance developed and become one of the industry's biggest players. However, Binance encountered significant regulatory issues in 2021. Several nations, including the Cayman Islands, Japan, Malta, the Netherlands, Malaysia, the United Kingdom, and Thailand took regulatory action against Binance in 2021.

    Binance, for instance, was told to stop all U.K.-regulated operations in June 2021 by the United Kingdom Financial Conduct Authority because it lacked the required registration, authorization, or license. The next month, Binance was charged with operating as an unlicensed virtual asset service provider (VASP) as part of Malaysian authorities' response.

    Before its headwinds in 2021, Binance said in 2019 that US consumers will no longer be accepted on its main exchange. Nevertheless, Binance launched a site called Binance.US that year that was accessible to US users.

    Binance has announced that it plans to create more offices across the world and apply for licenses in each country where it operates in response to heightened regulatory scrutiny. Along with expanding its personnel and compliance skills, Binance is also phasing out or limiting the number of high-risk products.

    BNB price history from Sep 2017 - Dec 06, 2022 (in U.S. dollars)

    Late in 2021, the price of the native coin from BNB Chain (formerly BSC) increased by 50%, but it decreased significantly in 2022. A single BNB coin, for instance, was worth more than 288.59 dollars on December 6, 2022, a significant decrease from the all-time high of 600 dollars in November 2021.

    Despite this, Binance Coin was among the ten most expensive cryptocurrencies in 2022. It is noteworthy that the price increase for BNB in November 2021 will happen at the same time as a price increase for Ethereum (ETH), the cryptocurrency from which BNB first emerged in 2017 before becoming independent years later.

    Source: Statista

    Binance Coin (BNB) Price Predictions 2022 - 2030

    Bitnation's BNB market predictions are based on different machine-based algorithms that examine technical indicators such as the relative strength index (RSI), moving average convergence divergence (MACD), moving average (MA), average true range (ATR), and Bollinger bands (BB).

    The crypto industry is notoriously unpredictable; forecasting future BNB price points is impossible, and many other things influence the price. As a result, our website's predictions should not be regarded as financial advice, and you should conduct your study. Before making any investment decisions, consult with your financial advisor.

    BNB Price Prediction 2022

    As the market begins to recover from the crypto winter, it is anticipated that BNB will reach a maximum price of $510.86. The predicted minimum price is $340.57, with an average price of $425.72.

    BNB Price Prediction 2023

    As BNB continues to reach new highs, Bitnation's algorithm predicts that in 2023, BNB will reach a maximum price of $794.67, with an average price of $709.53 for the year. In the event of a bear market, the lowest price BNB can reach in 2023 is $624.39.

    BNB Price Prediction 2024

    BNB is predicted to grow rapidly in 2024 as crypto gets traction in a variety of commercial areas. As a result, the price might rise to $1,078.48, with an average of $993.34. The minimal price for BNB might be $908.20.

    BNB Price Prediction 2025

    With the continuous capital expansion in the crypto market, BNB might reach a high of $1,362.30 in 2025, with an average price of $1,277.15. Analysts predict a minimum price of $1,192.01 if a sell-off occurs.

    BNB Price Prediction 2026

    Given the global growth of BNB, the currency might reach a maximum price of $1,646.11 by 2026, with an expected average price of $1,560.96. In addition, the lowest price for the same year maybe $1,475.82.

    BNB Price Prediction 2027

    BNB acceptance will continue to surge in 2027, as regulators begin to recognize that crypto is here to stay. BNB may achieve a maximum price of $1,929.92 by 2027, followed by a minimum price of $1,759.63. In 2027, the average price is predicted to be $1,844.78.

    BNB Price Prediction 2029

    According to market expectations, BNB will continue to rise toward $2,497.54 in 2029. If BNB fails to gain this support, it might average around $2,412.40 and bottom out at $2,327.25.

     BNB Price Prediction 2030

    This year will be remembered for BNB; crypto experts predict that in 2030, BNB will hit a new ATH of $2,781.35, with a new minimum price of $2,611.07. In the worst-case scenario, BNB will be worth $2,696.21 in 2030.

    Disclaimer: This data is predicted by Bitnation and the information should not be regarded as financial advice or any investment decisions.

    Source: Bitnation.Co

    Benefits of Binance Coin (BNB)

    Similar to other developing cryptocurrencies, the Binance Coin has several applications outside of the Binance exchange, including

    Trading: Depending on the limitations imposed by the exchange, Binance Coin may be exchanged for other cryptocurrencies on a variety of exchanges.

    Binance Exchange transaction fees: BNB can be used to pay for transactions on the Binance Exchange, and users get a discount for doing so.

    Credit card payments: BNB can be used as payment for cryptocurrency credit card bills on

    Processing payments: BNB can be made available by retailers to customers, giving them more payment options.

    Booking travel arrangements: On some websites, BNB can be used to make hotel and flight reservations.

    Entertainment: BNB has a variety of uses in the entertainment sector, from paying for virtual gifts to purchasing lottery tickets.

    Investment: Using Binance Coin, investors can invest in stocks, ETFs, and other assets on several platforms.

    Transfers and loans: On some platforms, BNB can be used as security for loans. Additionally, some apps let users pay friends and family and split bills using Binance Coin.

    Binance Coin (BNB) FAQs

    What Is BNB Currency?

    A cryptocurrency called BNB Coin is primarily used to cover transaction and trading fees on the Binance market.

    What Is the Purpose of the BNB Coin?

    Beyond the Binance exchange, Binance Coin can be used for a variety of purposes, such as:

    Make credit card purchase.

    Pay for the travel expenses.

    Purchase virtual presents.

    Make payments.

    Create investments.

    Make transfers and loans.

    Give to a charity.

    What Does Convert to BNB Mean?

    Any quantity of coins or tokens that are so little they are frequently ignored is referred to as "dust" in the cryptocurrency world. They are essentially minuscule leftovers from trades. Trades can be converted from dust to BNB on Binance.

    How Do BNB Markets Work?

    The location where BNB is bought and sold is referred to as the BNB market. On the secondary market, most BNB purchases are made. BNB can be purchased and sold by traders on and other cryptocurrency exchanges.

    Is Binance Illegal in the US?

    In the US, Binance is not prohibited. However, according to a May 13, 2021, Bloomberg report, the Internal Revenue Service and Justice Department are looking into Binance Holdings. According to the article, tax and laundering investigators have reportedly questioned people who know Binance's operations.