The history of Binance Coin: From ICO to market leader

4 minutes

Hwang Mee
23/08/2023 12:00 AM

    1. The birth of Binance and its vision

    Binance, founded by Changpeng Zhao (CZ) in 2017, aimed to provide a platform for trading various cryptocurrencies. CZ envisioned a comprehensive ecosystem that would cater to various crypto needs beyond just trading.

    2. The Binance Coin ICO

    In July 2017, Binance conducted an ICO for Binance Coin (BNB). The purpose of BNB was to serve as the native utility token within the Binance exchange ecosystem, offering discounts on trading fees and various other benefits.

    3. BNB's utility and use cases

    BNB's utility quickly expanded beyond trading fee discounts. It was used for participating in token sales on the Binance Launchpad, buying virtual gifts on Binance's social platform, and more.

    4. Binance Launchpad and IEOs

    Binance Launchpad, introduced in 2019, allowed blockchain projects to raise funds through initial exchange offerings (IEOs). BNB became a key currency for participating in these IEOs.

    5. Binance Chain and mainnet launch

    In 2019, Binance launched its blockchain, Binance Chain. BNB migrated from Ethereum's ERC-20 standard to become the native cryptocurrency of Binance Chain.

    6. BNB's role in the Binance ecosystem

    BNB's role expanded to include powering the Binance Decentralized Exchange (DEX) and being a central asset on Binance Smart Chain, a parallel blockchain for smart contracts.

    7. BNB's price journey and market impact

    BNB's price journey has been remarkable, witnessing both significant growth and market downturns. It gained attention as one of the top cryptocurrencies by market capitalization.

    8. BNB's migration to Binance Smart Chain

    Binance Smart Chain, launched in 2020, aimed to provide a fast and low-cost alternative for decentralized applications (DApps). BNB played a pivotal role in powering this ecosystem.

    9. DeFi and BNB's influence

    BNB's entry into the decentralized finance (DeFi) space further expanded its influence. It became an asset used in various DeFi protocols and platforms.

    10. Sustainability and future outlook

    Binance has continued to innovate and expand its ecosystem. The ongoing burns of BNB, where a portion of tokens is destroyed periodically, contribute to its scarcity and potential price appreciation.

    11. Conclusion

    The history of Binance Coin exemplifies how a well-thought-out utility token can evolve into a multi-faceted asset powering an entire ecosystem. Its journey reflects the dynamic nature of the cryptocurrency industry and the adaptability of blockchain projects.


    Binance Coin is the native cryptocurrency of the Binance exchange ecosystem, initially created for trading fee discounts and is now utilized for various purposes within the Binance network.
    Binance Launchpad is a platform that allows blockchain projects to raise funds through token sales, utilizing BNB as a primary currency for participation.
    Binance Smart Chain is a parallel blockchain to Binance Chain, offering smart contract functionality and facilitating decentralized applications (DApps) with lower fees and faster transactions.
    BNB has found applications in the decentralized finance (DeFi) space, being used as collateral, governance tokens, and more within DeFi protocols and platforms.
    BNB burn refers to the process of periodically destroying a portion of BNB tokens to reduce the total supply, potentially leading to increased scarcity and value appreciation.

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