What is GNH?
The Binance Coin (BNB) is the native token of the Binance exchange platform launched in 2017. At launch, one BNB was worth $0.11. Possessing a capacity of 200 million coins, Binance Coin has a current market cap of around $40 billion.
The distribution of its exhibits was as follows:
- ICO – 100 million
- Founding team – 80 million
- Angel investors – 20 million
The use of GNH essentially boils down to a few specific points and gives access to certain advantages:
- Make and receive payments
- Pay fees on Binance
- Feeding the Binance DEX
- Access token farming opportunities on Binance’s Launchpool
- Access exclusive token sales on Binance’s Launchpad
- BNB Staker to earn rewards and help secure the BNB Chain ecosystem
- Save on transaction fees by qualifying for the VIP program
Features of Binance Coin (BNB)
Initially launched on the Ethereum blockchain as the ERC-20 cryptocurrency, BNB has evolved. In 2019, crypto switched to its new mainnet, Binance Chain, with a conversion rate of 1:1.
Binance Coins have therefore been converted to the BEP2 standard. The purpose of the operation was to have enough liquidity to support the operation of the decentralized exchange, namely Binance DEX.
In addition, BNB users receive benefits by staking on Binance Smart Chain.
Reduced transaction fees
Binance has set up an incentive for investors who use its platform. The benefits are:
- 25% discount on Spot trading fees
- 25% discount on margin trading fees
- 10% discount on trading fees on futures
As you have certainly understood, the system is set up to allow you to save on transaction fees by pushing you to use the BNB. Those who qualify for the VIP program can save even more as a bonus.
Rewards for the most dynamic users
- The user must have a certain amount of BNB in their wallet (25 or more to access VIP level 1)
- The volume of its transactions over 30 days must have a total value of at least 1 million BUSD (to access VIP level 1)
- Binance classifies the user into one of its 10 VIP tiers and grants additional discounts
- The reward and fee reduction value depends on the transaction frequency and the BNB balance.
Participation in the sponsorship system
Owning Binance Coins allows traders to benefit from the Binance platform’s referral program. Indeed, all transactions made by invited persons are entitled to a commission.
The distribution of the sponsorship commission depends on the sponsor, who can decide not to share with his referrals. For sharing, here is the process:
- The sponsor can redistribute 0, 5, 10 or 20% of the commission if his current balance is less than 500 BNB.
- He can redistribute up to 40% commission if he owns more than 500 BNB.
Access to Binance’s future fundraisers
BNB users can take part in fundraisers held on Binance Launchpad. These opportunities simply allow investors to earn more cryptocurrencies. In addition, they also gain access to token farming opportunities on the Launchpool.
How does Binance Coin work?
Binance Coin operates based on the blockchain, allowing it to transfer and store information with security, traceability and transparency.
This technology allows it to operate outside the control of a national bank or financial institution. It largely avoids outside interference, which could otherwise influence the BNB price.
Now running on its blockchain, Binance Chain, the BNB coin can also interact on the Binance Smart Chain (BSC). This new blockchain makes it possible to carry out intelligent contracts for ETH.
BNB price forecasts
Most financial experts seem to agree that the price of Binance Coin will continue on its excellent momentum.
BNB is one of the most popular and successful cryptocurrencies in the world. Over time, BNB has experienced significant growth, and many financial experts believe it will continue to grow in the coming years. Currently, the outlook for this cryptocurrency looks positive.
It is important to remember that BNB can be an excellent long-term investment. Due to its high volatility, short-term investors might find it too risky.
What will be the price of the GNH in 2023? Predictions
Despite a difficult start to the year for all cryptocurrencies, the price of BNB is still attractive and offers a relatively low entry value compared to its ATH. Indeed, at present, the price is around $260. 9 months ago, the price of BNB was $445. Thus, BNB today represents a reliable cryptocurrency. It is very likely that once the bear market is over, the token will again experience strong growth, driven by the innovations of the Binance platform.
Conclusion: should you invest in Binance Coin?
Binance Coin is a digital currency that has shown rapid and impressive growth. If the crypto enjoys a good performance, it can count on the support of the vast community of crypto traders on its platform, Binance.
All the elements seem to lead the GNH towards a promising future. In addition, the predictions of experts point in the same direction. Opt for a safe and reliable broker to invest in BNB.
For this, we recommend OKX. It is a broker specialized in trading digital currencies that offers a wide range of advanced tools.