Binance Coin (BNB) is the native token of the Binance exchange. It was used to fund the creation of the exchange itself through an ICO and offers users a potentially useful range of features.
From 12 September 2019, users in the United States can no longer trade cryptocurrencies on the main Binance exchange, although withdrawals and wallet access will remain unaffected.
As of 24 September 2019, US residents can now trade USD on Binance.US, the American arm of Binance.
You can buy BNB on Binance using a wide range of other cryptocurrencies.
The 200 million was distributed 50/50 between the company and the public ICO.
This deflation is carried out through Binance’s purchase of 20% of the remaining public supply each quarter. The bought-back portion of coins is then burned.
The main purpose of BNB is to give you a discount on fees incurred when that fee is paid with BNB. This might be withdrawal fees, trade fees or anything else.
The discount decreases year on year in line with the 20% bought back each year.
BNB will gradually become less useful over time, most likely to discourage hoarding of BNB by users ahead of the buy-back.
In the future, Binance aims to build a decentralised exchange, and BNB will be used as one of the key base assets on the site as well as the gas that’s spent while executing contracts of the decentralised BNB exchange.
If you’re a frequent Binance user and want to duck large fees – especially if you plan on making very large trades or withdrawals – it might be worth stocking up even at high prices.
But remember that the discounts will decrease over time, and the coin will become almost useless before it’s all bought back.
