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Binance: A centralized ecosystem with utility – The News Minute

Binance Coin represents multiple use cases within the Binance ecosystem
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Imagine having a coin that virtually represents all major functions that crypto offers today – from being an investment vehicle to a token of a blockchain platform and even functioning as a launchpad utility token while saving you trading fees. Binance coin (BNB) does exactly that. In this article, we will take you to the complete analytical and technical guide of Binance coin today.
Binance Coin (BNB) is a utility token introduced by the global cryptocurrency exchange platform, Binance. It was introduced in 2017 and in 4 years has seen phenomenal growth. As of today, BNB is the third largest cryptocurrency.
BNB was initially launched on Ethereum as an ERC-20 token. It appeared via an ICO or Initial Coin Offering. Soon, Binance set itself free from the Ethereum chain and launched its blockchain – called the Binance Chain. This was then upgraded to the Binance Smart Chain (BSC), with BNB being its token. Over time, the Binance Smart Chain has certainly given Ethereum a run for its money, appealing to both developers and traders.

Binance uses profits from the ecosystem to purchase more BNB coins and then it burns them. This process reduces supply and inflates BNB’s value over time.
Binance Ecosystem
In March 2021 alone, Binance saw a whopping 84 million transactions on the Binance Smart Chain. Binance offers a significant amount of discount on trading fees to customers who use Binance Coin to pay transaction fees on Binance exchange and Binance DEX. Using BNB can lead to a significant amount of savings as the discount on transaction charges can range anywhere from 10% to 25% depending upon the risk level.

BNB targets not only the audience on the Binance Smart Chain, but also the larger DeFi community. With Binance Earn, a user can use their BNB holdings for several purposes like Staking, Launchpool and even Liquidity Swap.
The Binance ecosystem has made itself user friendly by introducing easy crypto loans. Binance has also introduced a crypto-powered VISA debit card of its own called Binance Card.
BNB started 2021 trading around $37 and reached an all-time-high of $675 in May. It is currently trading at $530. BNB has formed a bear flag since its recent crash, which, if played out, can result in a dip to $480 or lower. Key supports at $500 and $488 however, may provide support in limiting downside.
Binance Chart
Source: TradingView, Binance
A fibonacci pull of BNB’s all-time-high to its recent low during the December crash spawns some key levels, one of which – the .236 retracement ($530) – BNB is currently consolidating on. Immediate targets to the upside include $557 and $578, both of which will need to be flipped into support for BNB to see the psychological level of $600 again.
BNB was introduced with an aim to boost the trading ecosystem on Binance as well as promote operations on the Binance Smart Chain. Due to the congestion challenges on Ethereum, users have looked for alternatives and found a compelling one on BSC. BSC gives them a suitable alternative by offering quick, cheap transactions conducted via BNB. However, centralization concerns continue to keep crypto purists at bay. It is these two factors that will jointly shape the future of BNB. Despite controversies, BNB has grown at an exponential rate in 2021.
BNB can be the third most popular cryptocurrency on the chart, but it has a few drawbacks which you need to keep in mind before investing: 1) Binance doesn’t have its own headquarters. However, it has licensed offices worldwide. 2) Due to its controversial regulatory practices, Binance faces criticism regularly. Recently, a Binance affiliate was banned in the United Kingdom over regulatory issues.
Disclaimer:This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

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