When using Binance, you'll constantly come across BNB — it appears very frequently throughout the Binance ecosystem. So what exactly is BNB? Why do so many people hold it? Let's discuss. If you'd like to buy some BNB, register on Binance first, then download the Binance APP and you can purchase it right away.
What Is BNB?
BNB stands for Build and Build (originally Binance Coin). It's the platform token issued by the Binance exchange. It was first launched in 2017 via an ICO, initially as an Ethereum-based token, and later migrated to Binance's own blockchain — BNB Chain.
What Is BNB Used For?
1. Fee Deduction
When trading on Binance, choosing to pay fees with BNB gives you a discount. This is BNB's most basic and practical function. Whether for spot or futures trading, using BNB for fee deduction saves you a meaningful amount.
2. Launchpad Participation
To participate in Binance's new token launch events (Launchpad), you need to hold BNB. The more you hold, the larger your subscription quota. Historically, many Launchpad projects have delivered impressive returns to participants.
3. BNB Chain Ecosystem
BNB is the native token of BNB Chain. Any transaction on this chain requires BNB to pay gas fees. BNB Chain hosts a large number of DeFi, GameFi, and NFT projects.
4. Earn Yields
Holding BNB lets you participate in various Binance earn products, including flexible and locked savings, to generate additional returns.
5. Payments
Some merchants and platforms accept BNB as a payment method. Binance has also launched a crypto payment card that lets you spend with BNB.
BNB's Economic Model
BNB has an important feature — a burn mechanism. Binance periodically burns a portion of BNB, reducing the circulating supply. The initial cap was 200 million tokens, and the ultimate goal is to reduce the total supply to 100 million through burns. A decreasing supply is theoretically favorable for price.
Is It Worth Holding?
BNB's value is closely tied to the Binance platform. As the world's largest cryptocurrency exchange, Binance's continued business growth benefits BNB as well. However, like all cryptocurrencies, BNB's price is subject to volatility — invest with caution.
Good Reasons to Hold BNB
- You're an active Binance user and can use it for fee deduction
- You want to participate in Launchpad token sales
- You're bullish on Binance and BNB Chain's development
Summary
BNB is more than just a token — it's the core of the entire Binance ecosystem. If you frequently use Binance, holding some BNB is a very practical choice — at the very least, it saves you on trading fees.