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NB (BNB) is the native cryptocurrency of the Binance exchange, one of the largest and most popular cryptocurrency exchanges in the world. Binance launched BNB in 2017 as part of its initial coin offering (ICO), and it has since become a major player in the cryptocurrency market, with a market capitalization of over $100 billion as of April 2023.
One of the main uses of BNB is to pay for trading fees on the Binance exchange. When traders use BNB to pay for fees, they receive a discount of up to 25% on the fees they would otherwise pay in Bitcoin or other cryptocurrencies. This makes BNB an attractive option for frequent traders who want to save money on fees.
In addition to its use as a fee payment option, BNB has also been used as a fundraising tool for blockchain projects through Binance Launchpad, a platform for hosting token sales. Projects that are selected for Launchpad can raise funds by selling their tokens for BNB. This has helped to fuel the growth of the Binance ecosystem, as successful projects are likely to attract new users and increase the trading volume on the exchange.
Another key feature of BNB is its use in the Binance Smart Chain (BSC), a blockchain platform that was launched by Binance in 2020. BNB is used as the primary fuel for transactions on the BSC, meaning that users must hold and use BNB to pay for transaction fees on the BSC. This has helped to drive demand for BNB and increase its value.
BNB also has other uses within the Binance ecosystem, such as being used to purchase virtual gifts on the Binance NFT marketplace and as collateral for borrowing on the Binance lending platform.
Despite its popularity and usefulness, BNB has not been without controversy. In 2021, the UK Financial Conduct Authority (FCA) issued a warning against Binance, citing concerns about its operations in the UK and the use of BNB as a fundraising tool. This led to a temporary dip in the value of BNB, but it has since recovered and continued to grow in value.
Overall, BNB has become an important cryptocurrency in the world of trading and blockchain projects, with a strong presence in the Binance ecosystem. Its utility and popularity suggest that it will continue to play an important role in the cryptocurrency market for years to come.