Binance Coin (BNB) is a cryptocurrency created by the global crypto platform Binance. It is mainly used within Binance’s own blockchain ecosystem and related services.
BNB is the native coin of the BNB Chain, where it’s used to pay transaction fees and interact with other crypto network applications, such as sending crypto or using smart contracts. Originally, BNB was launched on the Ethereum blockchain, before moving to Binance’s own blockchain. It plays a central role in keeping the network running and is also used on some Binance services, including paying certain trading fees and unlocking specific platform features, making interacting with the Binance ecosystem cheaper, faster, and more convenient.
Who created Binance Coin (BNB)?
BNB was created by Binance, a cryptocurrency exchange founded in 2017 by Changpeng Zhao. The cryptocurrency was introduced during Binance’s early growth phase to support exchange activity. As Binance developed its own blockchain network, BNB became integrated into the BNB Chain and took on a broader technical role within the ecosystem.
Why does Binance Coin (BNB) matter?
It is required for the operation of the BNB Chain and for interacting with applications built on that network. Without BNB, users cannot process transactions or use smart contracts on the chain.
Its relevance is tied to the continued use of the BNB Chain and Binance’s platforms, rather than to widespread use as a standalone currency. It’s why many investors buy BNB as a way to gain exposure to the growth of the BNB Chain and the activity built on it, rather than to the Binance company itself.
Tip
Keen to learn more about Binance Coin? Learn more about what makes BNB unique and read all of the latest cryptocurrency news on Luno Discover.
Want to know how to buy, sell, send and receive BNB? We’ve got answers in these help articles:
This information is not intended to be nor does it constitute financial, tax, legal, investment or other advice; nor is it a call to trade. The information is intended as general market commentary for information purposes only. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Advisor.