Binance Coin. Review – cryptoindex.io –
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You can find our previous reviews here:
IOTA. Review. August — 2018
Cardano — review. Future plans.
Ripple — review. Further Perspectives
Litecoin. June’18 overview
The Dow Jones index. From where did it come to us?
Bitcoin Cash. June 2018 overview
Are cryptocurrency indices a new crypto market trend?
EOS. End of May’18 overview
Ethereum. May 2018 overview
Here on our Cryptoindex blog, we will be posting 100 articles about each of the top performing coins selected by our powerful AI algorithm#CIX100coinreview.
Today’s review: Binance Coin
Let’s start with the team that was headed by Changpeng Zhao, which has extensive experience in Bloomberg Tradebooks and Blockchain.info
The origin of the word Binance came from Binary + Finance = Binance. Initially, the project leaders set themselves the task, designed to solve the problems of the developing crypto market:
Security- In view of this, the technology of blockchain generated a huge number of coins, scammers and hackers showed interest in this.
Practicality and convenience- Many users were able to process huge transactions, which were promptly processed by the operator.
Brand- The new market just needed a decent brand, just as Apple came to IT.
Along with the creation of the crypto exchange, the team decided to announce the ICO in the course of which Binance raised $15 million. The launch of the ICO occurred in July 2017, in just a few minutes the investors bought out a significant amount of the coins, approximately 50% of the 200 million tokens. The remaining 40% was reserved for other needs and 10% went to the first investors.
Binance coin (BNB) is the utility of the ERC20 token based on the Ethereum platform. The emission is limited to 200 million coins. The system does not provide for mining in any form, coins can only be purchased . A separate purse for the token is not provided because the standard ERC20 allows you to store it in MEW (MyEthereumWallet). BNB is traded only on the Binance exchange itself with many currency pairs and it can not be bought for fiat (Only exchange for other cryptocurrencies inside the platform is possible)
The main purpose of the token is to maintain the life of the platform. For example, it “teaches” users to pay a commission with the help of BNB. The system is arranged in such a way that in the first year after the BNB issue, traders can get up to 50% of the commission, in the second year 25%, in the third 12.5%, and in the fourth and completely 6.75%. Then the program will be completed.
After listing, the BNB token started at $0.1 and in January it rose to a mark $24.46.
At that time, the capitalization of BNB was $2.5 billion. At this current time (date artcile was published, is $944 millons.
For traders, this is an excellent tool for obtaining discounts on commissions. The company’s policy is aimed at redemption and subsequent burning of tokens which will only contribute to the growth of the value of the token. In the future, developers plan to leave only 100,000 tokens and the rest will be burned.
Initially after the coin was put into circulation, BNB was used in 5 pairs with the most popular cryptocurrencies, as it improved in popularity so did their number. Developers have introduced a voting function to determine which tool is more practical for users, traders and investors.
Binance is a very successful project that has overcome a lot in one year, it is one of the most famous crypto-instruments and has won the title of a worthy brand that values its reputation. The platform is ever changing and the cost of BNB will directly depend on the success of the site.
At the time this article was published, BNB is 0.506% of the total of the CryptoIndex portfolio.
You can always check the current CIX100 composition at our MVP platform: http://cryptoindex.ai/
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