Binance

Binance Coin, or BNB, is the native token of Binance, one of the world’s largest cryptocurrency exchanges. Initially, it was launched as ERC-20 in the Ethereum blockchain in 2017. However, it migrated to its own network and blockchain in 2019 and rebranded as BNB.

 

Since then, it has become a crucial part of the Binance ecosystem. It is used to power Binance operations and applications built on the BNB blockchain, such as PancakeSwap, Biswap, Autoshark Finance, and others.

 

To keep the value of BNB stable, a real-time burning mechanism is used by Binance, where they send coins to a dead crypto wallet, reducing the circulating supply.

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If you’re looking to trade BNB, here are some factors to look out for to make the most of market volatility:

 

• BNB is committed to a quarterly burning of BNB coins until it reduces the total circulating supply from 200 million to 100 million. Burning increases the price as it decreases the supply.


• BNB is highly sensitive to issues concerning its parent company Binance. The Binance-FTX fallout reduced the price by half in value, almost USD 200, in just two weeks.


• Public perception of cryptocurrencies influences the price of BNB. General excitement in the market tends to create price increases, while loss of trust can send it tumbling down.