During the early 2017’s, amidst the initial surge of cryptocurrencies such as Bitcoin and Ethereum, a newcomer equipped with resilient tenacity and determined commitment emerged from the shadow of these giants. This discreet competitor would later transform into a robust enterprise, posing a formidable challenge to the well-established legacy, Coinbase and Binance. That competitive newcomer is none other than BNB or Binance Coin.
The story of BNB is a testament to the old adage that says ‘success doesn’t come easy.’ The road to prominence was paved with challenges, tremendous turmoil and these obstacles have only served to strengthen BNB’s resolve in conquering the volatile world of cryptocurrencies.
BNB, which started as an ERC20 token on the Ethereum blockchain, was introduced through an initial coin offering (ICO) in July 2017, by Changpeng Zhao (CZ), the founder of Binance. Intended to finance the development and growth of the Binance exchange, BNB swiftly rose to prominence, owing to a versatile set of use-cases that added value to the platform’s users.
Now, what makes BNB’s story stand out isn’t just that they quickly scaled new heights but the ways in which they stayed resilient even in times of thorny challenges. Binance, the parent company, faced a major setback in 2017 when the Chinese government clamped down hard on cryptocurrencies, banning all ICOs. The circumstances led Binance to seek other favourable jurisdictions, ultimately moving its servers and headquarters to more crypto-friendly Japan and Malta.
Nevertheless, Binance continued to rely on its decentralized vision and the functioning of BNB. They instituted a quarterly event, known as the ‘burn,’ in which they would buyback and destroy a certain quantity of BNB using 20% of their profits. Through this process, they aim to eventually destroy 100 million BNB, thereby reducing the overall supply and potentially pushing up the price. Furthermore, the introduction of the Binance Chain in 2019 and the subsequent migration of BNB tokens from Ethereum blockchain made BNB the native coin of Binance’s own blockchain.
Throughout its journey, Binance has faced challenges with regulatory authorities in various countries, hacking attempts, and fierce competition. However, its success lies in its ability to continually evolve and innovate. BNB’s story showcases resilience and the potential of a well-thought-out business model, powered by robust technology, that not only helps survive the challenges but also to thrive amidst adversity.
Recently, the BNB coin has witnessed a meteoric rise, fuelled by the success of Binance Smart Chain (BSC), a blockchain network built for running decentralized applications. The BSC is not only compatible with the Ethereum Virtual Machine but also offers low transaction fees, attracting a flood of new users.
What started as an auxiliary to the Binance exchange has become a powerhouse in the field of cryptocurrencies. Not only is BNB used as a utility token for transaction fees and participation in new token sales, but it also acts as an underlying coin for many DeFi (Decentralised Finance) applications running on the Binance Smart Chain.
The path wasn’t smooth, the tide wasn’t always in favor, but BNB’s story underscores the underlying strength of perseverance and adaptability. In an increasingly competitive landscape, BNB has not only managed to stay afloat but also surpassed many expectations with its innovative offerings. To keep pace with more trending news articles like this, check out DeFi Daily News.
Conclusion
The BNB journey is a classic example of how determination, innovation, and resilience can be a recipe for success. Binance and its BNB token have faced adversities, regulatory challenges, market uncertainties, and yet continue to successfully navigate the complex crypto landscape. Their story is one of courage, adaptability and steadfast purpose.
Frequently Asked Questions (FAQs)
1. What is BNB?
BNB, short for Binance Coin, is the native cryptocurrency of the Binance platform.
2. Why was BNB created?
BNB was initially created to fund the development of the Binance exchange. As of now, it offers a multitude of use cases including discounted trading fees, participation in token sales, and more.
3. How did BNB overcome the Chinese ICO ban?
In response to the Chinese ICO ban, Binance shifted its operations to crypto-friendly nations like Japan and Malta while continuing to innovate and deliver essential services.
4. How do the quarterly “burns” affect BNB?
The quarterly burns reduce the total supply of BNB, theoretically increasing the coin’s value over time due to the principles of supply and demand.
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