The history of Binance Coin is closely linked to that of the platform that bears the same name. In fact, the BNB token offers many advantages to its “hodlers” (coin holders) when operating in said market.
Although Binance is an extremely popular platform in the cryptocurrency sphere, it is interesting to discover how it has managed to consolidate itself over the years in this environment, establishing itself as one of the most prestigious and best-valued markets.
The entrance on stage
The history of Binance Coin dates back to 2017 when the company opted for an ICO to raise funds to finance its development. To be precise, this campaign spanned from June 26 to July 3 with the sale of 100 million tokens, equivalent to 50% of the total supply. The price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB, around 11 cents at the time.
Initially, it was a standard ERC-20 token, that is, it operated deployed on the Ethereum blockchain network. However, among the platform’s plans was to have its own blockchain, Binance Chain.
An increasingly popular platform
The Binance platform was launched to the public at the ideal time, that is, during the cryptocurrency boom in the summer of 2017, a fever that would continue until the end of that same year. At that time, the demand for digital assets by users was enormous and the platforms dedicated to trading cryptocurrencies could not cope with the arrival of new clients.
This allowed Binance to carve out a piece of the pie, which probably would not have happened if market conditions had stagnated, essentially because users would most likely have continued to trade the usual markets rather than jump in and try a new platform.
However, investors quickly realized that Binance was a very comfortable platform, intuitive, visually pleasing, easy to use and with very low transaction fees of 0.1%. Additionally, owning BNB tokens further reduced these costs per transaction, which propelled the company to the top positions, unseating its competitors.
A discount on commissions that is reduced annually by half
The BNB token provided a great advantage, reduced commissions when trading on Binance. This is probably what allowed the coin to quickly gain popularity and appreciate in value in such a way.
In fact, the token went on the market on July 25, 2017, at about 11 cents, and was already trading above a dollar since August 14, surpassing $10 on December 27, 2017. Therefore, the unit value of each BNB token multiplied by 100 in just 5 months. Two weeks later, it peaked at almost $25 – on January 12, 2018.
During the following months, the price of the token remained stable, later reaching a maximum of almost $40 on June 28, 2019, finally surpassing $50 on February 2, 2021, and $100 on February 9.
Initially, the transaction fee discount provided by Binance Coin was planned as follows:
- 50% the first year;
- 25% the second year;
- 12.5% the third year;
- 6.25% the fourth year;
However, Binance decided to reverse this decision and announced that the commission reduction would be 25% for an indefinite period, which allowed the token to maintain its usefulness and therefore the interest of users.
Binance DEX Launch
After developing its own blockchain, Binance Chain, the company decided to launch its own decentralized platform (DEX) on April 23, 2019, simply named Binance DEX.
Most decentralized markets work on the Ethereum blockchain and require the use of ETH, but in the case that concerns us, it is necessary to use Binance Coin to be able to operate in said market, which once again, provides greater utility to the BNB token.
Unfortunately, until early 2021, Binance DEX was not widely embraced by the crypto enthusiast community, as some users balked at the overly centralized nature of this platform. However, given the astronomical increase in transaction fees on the Ethereum network during January 2021, Binance’s decentralized platform is starting to gain popularity and this has been noticeable in the price of the BNB token, which has skyrocketed throughout the year. throughout the month of February of this year 2021.
BNB token burning
Binance has committed to allocating 25% of its profits to buy back BNB tokens at market price on a quarterly basis and burn them, i.e. destroy them, to reduce the total available supply. As a result, the scarcity of said currency increases, which results in a rebound in its price.
Below is a summary of the different token burning operations already carried out on the platform:
|Number of burning||Date||Amount of BNB burned||% of circulating supply||Value (in million $)||BNB Price|
|one||Third-quarter of 2017||986,000||0.49%||1.5||$1.50|
|two||Fourth-quarter of 2017||1,821,586||0.91%||40||$21.96|
|3||First-quarter of 2018||2,220,314||1.11%||30||$13.52|
|4||Second-quarter of 2018||2,528,767||1.26%||33.2||$12.93|
|5||Third-quarter of 2018||1,643,986||0.82%||16.2||$10.34|
|6||Fourth-quarter of 2018||1,623,818||0.81%||10||$5.83|
|7||First-quarter of 2019||829,888||0.41%||15.6||$18.79|
|8||Second-quarter of 2019||808,888||0.43%||23,838||$29.47|
|9||Third-quarter of 2019||2,061,888||1.10%||36.7||$17.79|
|10||Fourth-quarter of 2019||2,216,888||1.11%||38||$17.50|
|eleven||First-quarter of 2020||3,373,988||1.69%||52,466||$15.55|
|12||Second-quarter of 2020||3,477,388||1.74%||60.5||$17.40|
|13||Third-quarter of 2020||2,253,888||1.13%||68||$30.20|
|14||Fourth-quarter of 2020||3,619,888||1.81%||165,791||$45.80|
The platform commits to burning tokens until the total supply reaches 100 million tokens, i.e. half of the initial maximum supply. Currently (February 2021), the platform has burned around 30% of the tokens, so there are still quite a few tokens to be removed from the supply.
Despite the short time that has passed since Binance was launched to the public, it already has quite a rich past, and today, it is arguably one of the best platforms for trading cryptocurrencies. In fact, it has achieved such hegemony thanks to the utility provided by its BNB token and the excellent management of the company.
In view of the development of the cryptocurrency industry and the growing popularity of Binance, we can be sure that the history of the platform will continue to include new milestones in the future, and that the management team will continue to innovate to offer its clients new related functions. with cryptocurrencies.
If you want to learn more about the BNB token, remember that we have several different guides on this coin. Do not hesitate to consult our exclusive page where you can obtain precise information on certain particular aspects of the project.