What is Binance Coin BNB and which type of coin is this
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What is Binance Coin BNB and which type of coin is this
Binanceis one of the largest cryptocurrency exchanges in the world. Binance Coin (BNB)was created as a utility token to be used as a medium of exchange on Binance. It was initially built on theEthereum blockchain, but now resides on Binance's own blockchain platform.
Originally,BNB allowed traders to receive discounts on trading fees on Binance, but now itcan also be used for payments, booking travel, entertainment, online services,and financial services. As one of the top five cryptocurrencies by marketcap in 2022, BNB has developed a wide range of use cases and real-worldapplications.
But, likeother digital assets, this crypto platform has also faced regulatory hurdleshere and abroad.
BNB wascreated with a maximum of 200 million tokens, about half of which were madeavailable to investors during the ICO. Every quarter, to increase demand,Binance buys back and then "burns" - permanently destroying, orremoving from circulation - some of the coins it holds.
A projectburns its tokens to reduce the overall supply. The motivation is often toincrease the value of the remaining tokens, because whenever the circulatingsupply falls, the asset's price increases, and they become more scarce.