Binance is a cryptocurrency exchange based in Hong Kong. It became the most popular exchange in under seven months. According to the December report from Tech in Asia, daily trading volume on Binance amounted to $500 million. Exchange’s representatives, however, claim a record $10 billion daily volume and about 40,000 transactions per second. At some point, the exchange even suspended registration due to an influx of new users.
The other day, Binance went offline for 24 hours due to the technical issues. The users noted, however, that it was the only exchange to have been updating its clients on the situation for every two hours.
Binance CEO Changpeng Zhao is also worth mentioning. He is holding the third position in Forbes’ list of cryptocurrency’s richest people. In December last year, we had an interview with Mr. Zhao, in which he revealed the reason for Binance’s popularity as well as the plans for project development. Particularly, the top management considers improving trading security as one of the highest priorities, eyeing the transition to the fully decentralized trading in the future.
Binance Coin (BNB)
Binance Coin (BNB) is a token on the Ethereum blockchain enabling the users of Binance to receive discounts when paying the fees on the exchange and buy other cryptocurrencies on it.
A total of 200,000,000 BNB was issued; additional emission will not be provided. In order to maintain the value of the currency, each quarter, Binance uses 20% of its profits to buy back and burn BNB, until 100,000,000 BNB is burned. The company has now completed the burn of 1,821,586 BNB for their second quarter.
As the exchange’s popularity grows, so does the price of Binance Coin. In September last year, one could acquire 1 BNB for $1. As of this writing, the token price is hovering around $8. Binance Coin can be purchased on the Binance exchange and stored in the wallets compatible with the ERC20 tokens.
It is evident that given the current rate of popularity growth and the developed procedure of burning tokens, BNB price should be increasing throughout this year. I hope that the exchange will not face the technical problems again and the users’ trust will not be breached.
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