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Binance Coin (BNB): What is it and How Does It Work

by Roveen Anyango
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At this point, you have probably heard to cryptocurrency and have heard about Binance cryptocurrency.

Binance is the world’s largest crypto exchange, with over 28.6 million active users towards the end of last year.

The BNB was launched in 2017 as part of Binance’s Initial Coin Offering (ICO), which is similar to private companies Initial Public Offering (IPO). Thus, like IPO gives investors a stake in the stock shares, ICO gives individuals tokens or coins to own a stake in the blockchain-based service or cryptocurrency.

What Binance Coin Represents

The Binance coin represents a stake that you own in Binance itself. Thus, when you own a BNB, you own a stake in the company and if you believe the company will grow further and the BNB price will rise, you can sell the stake at a higher price to the one you bought.

You can also exchange the BNB for any other token available on the Binance exchange. Binance also made a deal with Crypto.com that made the BNB a form of payment for credit card bills. This saw Binance gain more mainstream appeal than before.

Indeed, BNB is a key cog in the African gaming revolution, which will see African gamers leverage Binance NFTs. Furthermore, BNB has grown so much that it is set to ultimately be a primary currency of the decentralized Binance exchange program.

Binance Worth

At the moment, the BNB is worth around $400 – $412 but has an expected maximum price rise to $547 by November 2022. Further projections predict the maximum and minimum price would reach $786 and $581 respectively, by February 2023.

What this means is that selling the BNB in February 2023 will earn you between $84 and $239 more than the current maximum and minimum values of the currency.

Projections predict that Binance will dominate the cryptocurrency exchange industry for some years to come, with expectation being that it could hit $850 value in 2025. However, that remains to be seen in face of the highly.

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