Binance Coin (BNB) is one of the cryptocurrencies most demanded by users and accumulates a profitability since its launch of 12,500%
The cryptocurrency has been accumulating positive returns for some time and in fact last October it shot up with the recovery of the crypto-asset market. A performance that was boosted by the launch of BITO, the first publicly traded fund (ETF) of Bitcoin futures.
Another key factor for the push in the price of Binance Coin (BNB) was the strong growth of the ecosystem. According to the data of DeFi Llama the number of applications DeFi in the ecosystem it was more than 140. Its total value increased to more than 18,000 million dollars.
Nonetheless, this number is likely to continue to grow, considering that Binance announced the launch of a $ 1 billion fund to assist developers in the ecosystem. The vehicle will invest in platforms such as DeFi, decentralized games, and non-fungible tokens (NFTs).
Binance has managed to become the world’s largest crypto exchange
At the same time, the numbers by BscScan show that the number of transactions on the network skyrocketed in October. Transactions increased to more than 11.5 million, which was slightly below the all-time high of more than 13 million.
It’s a remarkable move, as the number of transactions in 2020 was less than 100,000. Some of the largest platforms on the web are PancakeSwap, Venus Y Alpaca Finance.
In this context, Binance Coin (BNB) has a return of 1,500% so far this year, 2,000% for 2 years and more than 12,500% since its launch. Hence, many investors wonder how much money they would have made by investing 1,000 euros in these time frames.
Thus, in the case of having invested that amount a year ago, now you would have 20,935 euros under your belt. On the other hand, if the term was extended to 2 years, the figure would not change much: 21,068 euros. On the contrary, if you had invested 1,000 euros in its launch, you would now have 126,785 euros. Nothing more and nothing less.
Meanwhile, you may be wondering what Binance Coin (BNB) consists of and why it is so attractive. It should be noted, firstly, that Binance is a centralized exchange that allows the purchase, sale and exchange of different cryptocurrencies.
The company has become one of the most important platforms in the ecosystem with great growth in a short time. It is characterized by including a great variety of cryptocurrencies and tokens, and very low transaction fees.
Thus, it was created by Changpeng Zhao, a Chinese-Canadian businessman. The exchange began operating in July 2017 in China after having obtained 15 million dollars of financing through an ICO round.
Very shortly thereafter, that same year, it had to relocate its operations to Japan due to restrictions on cryptocurrency trading imposed by China.
The Zhao exchange in March 2018 was already the one with the highest volume of registered operations and already had a second headquarters in Taiwan. It currently has several alliances with projects in Bermuda, Malta, Israel and Europe.
Changpeng Zhao, CEO de Binance
Regarding Binance Coin, it should be noted that it is an ERC-20 type token built within the blockchain from Ethereum and it launched right with the launch of the centralized exchange. A total of 200 million BNB tokens were issued in July 2017 in an ICO to finance the development of the exchange. Subsequently, the coins were transferred to the platform’s own blockchain called Binance Chain.
This cryptocurrency incorporates a mechanism that gradually reduces the amount of BNB in circulation. The burning of 100 million BNB (50% of the initial issue) is planned, which will mean an adjustment in the price of the currency. The long-term idea is that the price becomes more stable.
Thus, BNB cannot be mined as all the coins have been issued. Right now what is happening is the reverse process, the gradual burning of BNB until only 100 million remain.
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