Why I’m bullish on Binance Coin for 2022

Binance Coin (BNB) is the utility token of popular cryptocurrency exchange Binance and is used to pay transaction fees on the Binance Smart Chain, an ecosystem with a decent number of projects in development. Created with the aim of creating an ecosystem based on decentralized finance (DeFi), the coin allows users to pay for transactions and trading fees at a lower rate than they would with other tokens. Binance uses the token “burn” process, which means they use the profit from token sales to buy back more BNB and then burn (destroy) them.

Did you know?

Binance started as a crypto exchange in 2017. Today, it is probably the biggest player in the $1.8 trillion (roughly Rs. 1,37,03,710 crore) crypto industry.
Binance Coin (BNB) is the 4th largest crypto in the world by market capitalization. Its market cap is over $64 billion (about Rs. 4,87,180 crore).
Over the past 24 hours, more than $1.5 billion (around Rs 11,420 crore) worth of BNB changed hands.
90% of Binance employees earn a portion of their income in BNB.
Binance recently invested $200 million (about Rs 1,520 crore) in TBEN.

The ecosystem includes:

  1. Multiple Crypto Exchanges
  2. Multiple Cryptos — Binance Coin (BNB), Bitcoin BEP2 (BTCB)
  3. Trust Wallet and its TWT token
  4. Multiple Blockchains
  5. token launcher
  6. Binance Pool comprising over 10% of Bitcoin mining hash rate
  7. Binance has 3 crypto exchanges:

Binance.com – the original and largest crypto exchange by volume.
Binance.us – which was created after Binance was banned in the US in 2019 for regulatory reasons.
Binance DEX — a decentralized exchange built on Binance Chain.
Binance Coin (BNB) was issued as part of Binance’s Initial Coin Offering (ICO). Its first use case was reduced trading fees on the Binance exchange.

BUSD is a US dollar-backed stablecoin issued jointly by Binance and Paxos. BUSD is one of the few stablecoins approved by the New York State Department of Financial Services (NYSDFS).

Trust Wallet is a popular mobile wallet that supports 53 blockchains and over 1 million digital assets. It was acquired by Binance in 2018.

Binance operates 2 blockchains that operate in parallel:

  • The large Binance Chain (BC) transaction capacity
  • Binance Smart Chain (BSC), which has smart contract functionality and implements the Ethereum Virtual Machine (EVM)

BSC has grown in popularity in 2021-22, mainly due to Ethereum’s slow speeds and high costs. Creating tokens on BSC is simple and inexpensive. But there is a caveat here – the validation is done by a small number of validators, which makes it quite centralized.

Binance Coin (BNB) was launched in 2017.

Initially, 200 million BNB were issued. Binance regularly “burns” BNB and will continue to do so until there are only 100 million BNB left. Currently, there are 165 million BNB in ​​circulation.

BNB is a utility coin that can be used on Binance Chain and Binance Smart Chain.

Some of its use cases are:

Crypto traders get discounts if transaction fees on binance.com are paid in BNB.
Crypto traders can also use BNB as collateral for loans.
Payments for Third-Party Services.
Participation rights on Binance Launchpad.
Delegated staking on Binance Smart Chain, which uses Proof-of-Staked Authority (PoSA) consensus.
Binance Legal Issues
On the positive side, Binance is facing legal issues across the world – Canada, Cayman Islands, Italy, Japan, Malaysia, Singapore, South Africa, Thailand, UK and USA.

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