Review on Binance Coin by Davis Marvel O'cho
Binance Coin
The primary purpose of the Binance token is to be used as a medium of exchange on the exchange platform. It is the BNB. His main interests are:
1. Discounts: users who keep BNB and use it for trading fees receive discounts. In 2018, the discount rate was 25%, for 12.5% in 2019 and finally 6.25% in 2020.
2. The BNB token is limited to 200 million units produced. BNB is used as gas for payments made on Binance's decentralized exchange (a bit like ETH for Ethereum).
The BNB token experienced growth of 22,000% in the six months following its creation. Better than Bitcoin or Ethereum. This mechanism is a real incentive for users to own BNB. Thus, the Binance Coin is presented as a cryptocurrency with real utility, with real use, as it is little done on the market. Each quarter, Binance burns a certain Binance Coin. This is to reduce the amount of your token in circulation.
Pros
- Dramatically reduced trading costs thanks to the BNB holding company
- New use cases are regularly imagined for BNBs such as use as a means of payment,
- The price of BNB could be raised mechanically over time, as they are regularly destroyed (up to 100 million units).
Cons
- The future of BNBs is linked to that of Binance.
