Binance Coin (BNB)

BNB was initially developed as an ERC-20 token on the Ethereum platform. However, in April 2019, Binance Coin built its own blockchain, named Binance Chain, and switched BNB to it. When compared to the Ethereum network, the Binance Coin Chain provides faster transactions and reduced fees.

BNB has multiple use cases within the Binance ecosystem. It can be used to pay transaction fees on the Binance Coin exchange, participate in token sales on the Binance Launchpad, and pay for various services and fees within the Binance ecosystem. BNB also powers the Binance Coin DEX (decentralised exchange) and serves as a utility token within the Binance Smart Chain, supporting smart contract functionality.

Who are the Founders of Binance Coin?

Changpeng Zhao, also known as CZ, is a serial entrepreneur with a long history of successful enterprises. He founded Binance coin in July 2017 and grew it to become the world's largest digital asset exchange by trading volume in just 180 days. CZ has built Binance Coin into the premier blockchain ecosystem, which includes Binance Exchange, Labs, Launchpad, Academy, Research, Trust Wallet, Charity, NFT, and more. CZ spent his childhood flipping burgers before attending McGill University in Montreal. CZ left his position as head of the Bloomberg Tradebook Futures Research & Development team in 2005 to launch Fusion Systems in Shanghai. Soon after, he learned about Bitcoin and became the Head of Technology at Blockchain.com

He Yi oversees Binance Coin business, marketing, and branding strategies. Yi has overseen the business strategy behind Binance's rise to become the world's largest crypto exchange, pivoting the company from a crypto-to-crypto exchange to a global blockchain ecosystem. She was also an important component of the fundraising campaign that raised the firm's valuation to more than $3 billion.  Yi is recognized as one of the most prominent entrepreneurs in the blockchain business and has contributed to creating a trend of recruiting female executives in the male-dominated tech industry, strengthening the market's trust in women leaders. 

Binance Coin (BNB) Auto Burn

A coin burn is the process of permanently withdrawing cryptocurrencies from circulation in order to limit the total quantity of the coin. In other words, the coins are destroyed and can no longer be utilised for trading or anything else. Coin burning intends to generate a deflationary impact and potentially improve the cryptocurrency's worth to benefit its holders by making the coin scarcer. The purpose of coin-burning events for binance coin (BNB) is to steadily lower its total supply until it falls below 100 million BNB.

The BNB utility token fuels the binance coin (BNB) ecosystem. The entire supply was initially 200,000,000 BNB, but it is gradually reducing due to coin burns. The burning events will continue until half of the whole supply is burned, bringing it down to less than 100,000,000 BNB. Binance coin has executed 23 BNB coin burn operations as of April 2023. In total, 44,833,226.65 BNB coins were destroyed, representing a 22.37% reduction in the initial 200M supply.

Role of Binance Coin (BNB) in the Binance Ecosystem

Transaction costs: On the Binance coin exchange, BNB can be used to pay transaction costs. Users can pay their fees in BNB when trading cryptocurrencies or completing transactions on the Binance platform. Users can enjoy lower fees by using BNB for fees, creating an incentive to store and use the coin.

Governance: Binance Coin (BNB) holders have the capacity to engage in the Binance ecosystem's governance. Binance holds votes for polls on a variety of topics, such as listing new cryptocurrencies on the exchange or making platform changes, on a regular basis. Users can vote on these suggestions and have a say in the decision-making process by holding BNB.

Token Sales: BNB is the only token that can be used to participate in token sales hosted on the Binance Launchpad. Binance coin Launchpad is a platform that allows people to buy tokens from potential blockchain projects and invest in them. To participate in these token sales, users must possess a particular quantity of BNB, generating extra use and demand for BNB.

Staking and Rewards: Binance Coin holders can stake their coins in order to gain rewards inside the Binance ecosystem. Users who participate in staking offer their BNB coins to the network, thereby supporting its security and operations. They obtain staking incentives in the form of more BNB or other cryptocurrencies in exchange. Staking allows BNB holders to generate passive income.

New in Binance Coin (BNB) 

SEC Vs Binance Coin

The Securities and Exchange Commission (SEC) has filed 13 charges against Binance and its founder Changpeng Zhao. The allegations put forth by the SEC claim that Binance coin violated securities laws by engaging in activities that attracted US customers to its unregulated international exchange. The charges specifically revolve around the unregistered offers and sales of Binance's native tokens, namely BNB and BUSD, as well as its crypto-lending products called "Simple Earn" and "BNB Vault."

According to the SEC, Binance acted as a broker-dealer, exchange, and clearing agency without appropriate registration. The agency identified the BUSD token, a stablecoin issued by Paxos, and Binance's BNB token as securities that should have been registered with the SEC. The SEC further alleges that despite Binance's claims of Binance.US operating separately from the main exchange, Zhao and other individuals within Binance coin directed valuable investors to bypass the controls designed to keep them off the platform.

In response to the SEC's complaint, Binance coin expressed disappointment at the SEC's decision to file charges against them. Binance stated that they have actively cooperated with the SEC's investigations, addressing their concerns and providing answers to their questions.

To summarise, the SEC has filed multiple charges against Binance coin and its founder, Changpeng Zhao, accusing the company of violating securities laws by enticing US customers to its unregulated international exchange. The SEC claims that Binance coin operated as a broker-dealer, exchange, and clearing agency without proper registration. The BUSD and BNB tokens were singled out by the SEC as securities that should have been registered with the agency. Binance, while expressing disappointment, stated that they have cooperated with the SEC's investigations and made efforts to address their concerns.