Binance Coin (BNB) is a token of the Binance cryptocurrency exchange. BNB was launched in 2017, 11 days prior to the opening of the exchange, with a maximum volume of 200 million coins. In the next few years, BNB entered the top 5 in terms of market capitalization, becoming one of the main cryptocurrencies used by investors and traders.
The main use of BNB is to pay for transaction fees on Binance platforms. However, it can also be used for payments and financial purposes, to book flights and hotels, to pay for online services and much more. Every quarter Binance allocates one-fifth of its profits to purchase and then burn BNB tokens. This process limits the supply and contributes to the rise of BNB.
Popularity of the crypto exchange determines the price of BNB. Lower trading costs, high transaction speed, and steady growth of BNB are attracting new users to Binance Coin. Successful marketing campaigns, such as the ICO of the BitTorrent project (its coins could only be bought for BNB or TRX), help to significantly expand the customer base of the project. However, the rate of the coin depends on the performance of Binance. Technical issues in the platform or pressure from regulators might negatively affect the price of BNB.
BNB price is also affected by the general price trend of cryptocurrencies, which depends on Bitcoin.
When trading BNB/USD, it is important to follow all the news concerning the exchange and its management. For example, the Internal Revenue Service and the US Department of Justice investigate Binance on allegations of money-laundering activities and tax offences. Such news negatively affect the reputation of the crypto exchange and the price of BNB.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
