Crypto Academy Week 9 - Homework Post for @yohan2on

The Binance coin is a cryptocurrency that can be used to make different transactions and also for payments on the binance cryptocurrency exchange. The Binance coin is the largest cryptocurrency exchange in the world speaking with regards to the statistics of January 2018, thus enabling up to 1.4 million transactions per second.

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The binance coin was launched through an Initial Coin Offering which took place from the 26th of June 2017 to the 3rd of July 2017, which was 11 days be the opening of the binance exchange for trading. In as much as the binance coin was launched through the initial coin offering, it does not provide the investors with a claim on binance profits and does not depict an investment in binance.

@yohan2on

The binance coin was issued initially as an ERC-20 token; the ERC-20 token is a technical standard that is used to issue out tokens and to also implement tokens on the ethereum blockchain. This ERC-20 makes it stress-free to predict with more accuracy and precision the relationship between other tokens and applications.so back to the binance, we said that it was originally issued out as an ERC-20 token that is running on the network of the Ethereum and has a total number of 200 million coins supply. In the initial coin offering 100 million binance coins are offered but because of the periodic burning events the current total supply is now lower in which binance destroys the binance coin (BNB) kept in its treasury. Even though at the start based on the Ethereum network, the ERC-20 BNB tokens were later exchanged with BEP-2 BNB on the ratio of 1:1.

The BEP-2 BNB is the native coin of the Binance Chain, and its launching was declared on the 18th of April in 2019. The BNB controls the Binance System and is the native coin of the Binance Chain. Binance launched the Binance smart chain in September 2020; this is a blockchain network that runs corresponding with the Binance Chain. This goes to say that it is possible for you to now find BNB in three diverse forms, which are the BNB BEP-2 on the Binance Chain, the BNB ERC-20 on the Ethereum network and the BNB BEP-20 on the Binance Smart Chain.

Since we have known what the Binance coin BNB means, we can now proceed to looking at what the BNB is used for.

THE USE OF THE BINANCE COIN (BNB)

The BNB is can be traded for other cryptocurrences on different exchanges; it is reliant on the restriction that is set by the exchange.
The Binance coin (BNB) can be used to serve as collateral for loans on some platforms; they are also certain application that makes it possible for the users to split bills to pay friends and families through the binance coin.

The BNB can also be used to pay Binances 0.1% per transaction fee which will be in addition to its withdrawal charges; this is charged when the investors move their cryptocurrencies from the exchange into a private wallet, even at that it can also be traded for other cryptocurrencies.

The binance coin can be offered as a means of payment for customers by dealers in any business as it offers more flexible methods of payment.
Users of the binance coin can use it to book for hotels and flights on a few selected websites.

THE BINANCE COIN (BNB): THE INITIAL COIN OFFERING (ICO)

The Binance coin was launched with the initial coin offering as at july 2017, being part of the initial coin offering, the Binance coin tokens were shared amongst the participating members, which also includes the binance founding team and the angel investors (angel investors are persons or organizations that provides funds to start up a business with will be in exchange for ownership equity, it is possible that they will provide a one time investment or an ongoing funding to help the business go through certain challenging stages at the early stage, the angel investor is not like banks that will only invest in businesses that are already yielding profits, what they do is that they invest in business men who are taking their very first steps in the business).

The Binance coin token was distributed thus: The public sale had 50% which is 100 million BNB, while the founding team had 40% which is 80 million BNB and the Angel investors were given 10% which is 20 million BNB.
All the BNB tokens worth 100 million that was available for public sale were sold during the initial coin offering for 15 cents for each token, this is to say that binance was able to raise over $15million in both bitcoin and Ethereum. From the said $15million that was raised, 35% of it was given for the upgrade of the binance platform plus the binance exchange system, 50% was for marketing, the branding of binance and also for the education of new innovators, leaving them with 15% that was used as reserve to be used in the case of emergency and other unplanned situations.
The BNB token can also be used to pay off transaction charges that were sustained while exchanging the digital coins. Take for instance, converting litecoin to bitcoin will mean that you must pay some transaction charges. The exceptional management of this exchange platform has successfully helped to bring so many users. Binance has risen to become one of the top 3 in the market.

BINANCE BURNING

Burning denotes the process by which crypto token is permanently removed from the circulation. When Binance launched BNB in 2017, it consistently carried out the burning of a total of 100 million BNB that is half of its supply.
Every quarter, binance will use 20% of its profits to purchase and burn binance coins, thereby completely destroying them.