What is Binance Coin (BNB) and When Was It Launched?

Binance, one of the world’s largest and most influential cryptocurrency exchanges, decided to create its own native digital asset several years ago. This token is called Binance Coin, commonly abbreviated as BNB. Backed by the strong reputation and massive ecosystem of Binance, BNB quickly gained traction among investors and traders worldwide. Its value has steadily increased over time, making it one of the most popular digital assets on the market.

One of the most attractive benefits of holding Binance Coin is the trading fee discounts it offers on the Binance exchange. Users who pay transaction fees in BNB receive significant discounts, a feature that has been instrumental in driving demand and adoption.

BNB officially launched on July 3, 2017, via an Initial Coin Offering (ICO). In its early days, the token was priced at around $0.11 per coin. Since then, Binance Coin has grown exponentially, evolving into not just a utility token but also a powerful asset within the broader crypto economy.

Who Founded Binance Coin?

Since Binance is the issuing company, Binance Coin is closely tied to the leadership of Binance itself. The exchange was founded by Changpeng Zhao (often referred to as “CZ”), one of the most influential figures in the cryptocurrency industry. Under his leadership, Binance grew from a startup into a global exchange giant.

However, ownership of BNB is public and decentralized. Anyone who buys Binance Coin becomes a stakeholder. No single person or institution has full control over the circulating supply of BNB.

To maintain long-term value, Binance follows a unique policy: every year, the company uses a portion of its profits to buy back and “burn” BNB tokens. This mechanism reduces the total supply of Binance Coin over time and aims to prevent inflation, creating a deflationary effect that benefits holders.

How to Buy and Sell Binance Coin

For most investors, the primary platform to buy and sell Binance Coin is, naturally, the Binance exchange. As the largest crypto exchange globally by trading volume, Binance provides direct access to BNB with a wide range of trading pairs including USD, EUR, USDT, and more.

Here’s how the process works:

1. Create a Binance Account – Sign up with your name, email, and basic details. Identity verification (KYC) is usually required.

2. Deposit Funds – You can fund your account using credit cards, bank transfers, or popular payment processors.

3. Buy BNB – Navigate to the “Buy Crypto” section, select BNB, and enter the amount you wish to purchase.

4. Store Your BNB – You can hold Binance Coin in your Binance account or transfer it to a private crypto wallet for additional security.

5. Selling BNB – To sell, simply place a sell order on Binance. The process typically takes just a few minutes.

Outside Binance, some global exchanges also list BNB, though Binance remains the most liquid and accessible marketplace.

Can You Mine Binance Coin?

Unlike Bitcoin or Ethereum (in its earlier proof-of-work days), Binance Coin cannot be mined. The total supply of BNB was pre-mined before launch, with half sold during the ICO and the other half retained by Binance for ecosystem development.

Instead of mining, Binance employs the BNB burning mechanism as a supply-control method. Initially, Binance committed to using 20% of its quarterly profits to repurchase and burn BNB tokens until only 100 million remain in circulation. However, the policy has since evolved, with Binance adjusting the buyback amounts based on overall market conditions and company performance.

This system ensures that, over time, the supply of Binance Coin decreases, theoretically boosting scarcity and supporting long-term price appreciation.

Why Binance Coin Matters

Beyond exchange fee discounts, BNB has grown into a multi-purpose utility token. Today, it powers the BNB Chain ecosystem, where it is used for transaction fees, decentralized applications (dApps), DeFi protocols, and NFT marketplaces. Additionally, many merchants and online services now accept BNB as a payment method, broadening its real-world utility.

BNB’s role within the Binance Smart Chain (now BNB Chain) has further cemented its position as one of the top cryptocurrencies by market capitalization.