What is Binance (BNB) in a Nutshell [DEL]

Boxmining

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Description

Binance is a chinese digital asset exchange that is getting a lot of attention recently. In this episode talk about the exchange itself, its business strategy and uses for the Binance Coin (BNB). 0:30...

Binance is a chinese digital asset exchange that is getting a lot of attention recently. In this episode talk about the exchange itself, its business strategy and uses for the Binance Coin (BNB). 0:30 Binance Exchange 1:55 Trade Volumes 2:35 Trade Capacity 4:07 Binance and Chinese ICOs 4:40 Not prioritizing classic top 10s 5:55 Binance Coin (BNB) Whitepaper: https://www.binance.com/resources/ico/Binance_WhitePaper_en.pdf Use code "6bXKwD" and get 3% off every purchase on Genesis Mining! https://www.genesis-mining.com/a/287920 🤑 ♨️Social: http://boxmining.com Steemit: https://steemit.com/@boxmining Twitter: https://twitter.com/boxmining Facebook: https://www.facebook.com/boxmining 🤑 Buy Bitcoin: https://www.coinbase.com/join/590c3a1c8bfa31012ffacf87 💰 Secure your Crypto with Hardware Wallets: Ledger: https://www.ledgerwallet.com/r/428b Trezor: https://trezor.io/?a=6xd5fhdqqjng 💪Donations: Bitcoin : 13EvsPm3YhiCPGksQQdvQUFtsbF8FoU6Cz Ethereum: https://etherscan.io/address/0x58d98516363D2A5f93CE6aB4A4a909599C3EEC3a DASH: XcAREQEEunvv6rJza9LKDzdyjZ1BwBN2iK Litecoin: LXeXUr2Hr3ePgHb9aDjr4QdqA4DPXoTarU NEM: ND6WRNN2W2AZLON65EGI3Y46M4TWP3HNKSB4BGW2 Decred: DsgsSqYF2oSZ5MJeoqiEMyeJdWhdvWk8A4s Byteball: FSLKOZBIO37AUVGWCWO6PLO455W2UYDV 👩🏻‍🚀 Save on Amazon with Purse.io https://purse.io/?_r=Fxj40g 💱Software Wallet: Windows/Mac/linux: http://exodus.io

AI Analysis

Binance is a rapidly growing cryptocurrency exchange, primarily targeting the Chinese market but with international ambitions. It stands out by exclusively dealing in digital asset pairs, completely sidestepping fiat currencies, which helps it navigate the complex regulatory landscape in China. The platform's strategic focus on high performance, rare coin listings, and strong support for new ICOs, combined with a unique utility for its native Binance Coin (BNB), aims to attract and retain a significant user base.

Here’s a closer look at what makes Binance tick:

* Binance Exchange Overview:
* Binance combines "binary" and "finance" because it only supports digital asset-to-digital asset trading pairs, completely avoiding fiat currencies like USD or RMB. This strategy is key to sidestepping regulatory issues in China.
* The exchange offers support in multiple languages, including English and Chinese, with plans for Korean in the future, aiming for an international user base despite its Chinese focus.
* It currently lists around 10 different tokens and coins, including popular ones like Ethereum and NEO, as well as its own token and others like Quantum and OpenAnx.
* Despite being a relatively new launch, Binance has quickly achieved a daily trade volume of around $4 million USD, which is considered very high for its age.
* A notable example of its rapid growth is its performance with NEO; within just two weeks of listing NEO, Binance captured 23% of its global trade volume, placing it right after Bittrex.
* A major selling point is its impressive technical capacity, capable of handling 1.4 million orders per second, making it a high-performance trading platform.
* Initially, Binance attracted users with zero trading fees, a promotion that ran until around August 24th. This aggressive strategy aimed to pull in a large user base quickly.
* After the promotional period, a 0.1% trading fee was implemented, which is still quite competitive and significantly lower than Bittrex's 0.25% commission.
* Despite its rapid rise, the exchange is still new and needs to prove its long-term reliability and security, as these are crucial factors for user trust.

* Business Strategy and Market Position:
* Binance employs a unique strategy of listing "rarer" coins that are particularly popular in China, rather than just focusing on the traditional top 10 cryptocurrencies like Monero or Dash. This approach, similar to exchanges like Cryptopia or Ether Delta, attracts users looking for access to more niche or newly launched tokens.
* The exchange features an "ICO session," allowing new ICO projects to list directly on its platform, much like HitBTC. This is a significant draw, especially given the huge interest in ICOs in China.
* Listing ICOs not only generates revenue for Binance through listing fees but also creates exclusivity, positioning it as a primary exchange for these new projects and attracting their communities.
* Binance is intentionally not targeting the classic top 10 cryptocurrencies, as other established exchanges already dominate those markets with higher volumes. Instead, it focuses on newer and particularly Chinese-origin coins.
* A key question for its future success is whether it can maintain its high trade volume and insane growth rate once trading fees are fully implemented.
* Binance faces stiff competition from both established international exchanges and other Chinese platforms like BTCC DAX.
* The presenter highlights the potential impact of China's "Great Firewall" on international trading, noting that disconnections can be devastating for trades. This might be a reason why Chinese traders prefer a local exchange like Binance for better connectivity and reliability within China.

* Binance Coin (BNB) Utility:
* The Binance Coin (BNB) is a central part of the exchange's ecosystem, currently trading at around $2.37 (at the time of the video).
* Fee Discounts: The primary use case for BNB is to provide a discount on trading fees on the Binance platform. Users can choose to pay their fees using BNB to get a 50% discount. When BNB is used for fees, it is "burnt," meaning it's removed from circulation.
* Diminishing Returns on Discounts: The discount rate for using BNB will decrease over time. After five years, there will be no discount for using BNB for fees, which encourages users to utilize and burn BNB sooner.
* Coin Buyback Program: Binance has committed to a regular coin buyback schedule, using 20% of its quarterly profits to buy back BNB tokens from the market. This program will continue until 50% of the total BNB supply (leaving 100 million tokens) has been bought back and then "burnt" or destroyed. This reduces the supply, potentially increasing the value of the remaining BNB.
* Future Decentralized Exchange Utility: Beyond the current centralized exchange, Binance plans to build a decentralized exchange. BNB tokens are slated to be used as "gas" (transaction fees) and for reducing costs on this future decentralized platform.
* These planned uses demonstrate a clear business plan and utility for BNB, suggesting its long-term value is tied to the growth and development of the Binance ecosystem.

In summary, Binance is a highly ambitious and fast-growing cryptocurrency exchange that has carved out a niche by focusing on digital-asset-only trading, targeting the Chinese market, and listing new and rarer coins. Its impressive technical capabilities, competitive fees, and a well-defined utility for its native BNB coin position it as a significant player in the crypto exchange space, though its long-term sustainability after the initial growth phase and fee implementation remains an exciting point to watch.

Transcript

What's up everyone and welcome back to Box Mining. Today I'm going to take a look at Binance in a nutshell. I'm going to take you through the current working exchange, talk about its strategy and what it's going to do in the future. Then I'm going to talk about the Binance coin as well. It's currently trading at $2.37, getting a lot of traction recently. I'm going to talk about use cases for the coin and how it's going to be valuable in the future. This has been a highly requested topic, but I ...

What's up everyone and welcome back to Box Mining. Today I'm going to take a look at Binance in a nutshell. I'm going to take you through the current working exchange, talk about its strategy and what it's going to do in the future. Then I'm going to talk about the Binance coin as well. It's currently trading at $2.37, getting a lot of traction recently. I'm going to talk about use cases for the coin and how it's going to be valuable in the future. This has been a highly requested topic, but I want to say that this is my current personal opinion and not financial advice. So let's take a look at Binance first of all. So Binance is a cryptocurrency exchange. It's both in English and Chinese. Predominantly it's going to be for the Chinese market, but it's going to have English as well, possibly Korean in the future. So it's going to support multiple languages to allow for international users to come on the exchange. Binance is a combination of two words, binary and finance Binance. And why it's binary is, is because it's doing only in currency pairs. So digital asset to digital asset, it's not going to deal with fiat. This allows the exchanges sidestep issues with dealing with the Chinese government. So you're not allowed to use the renminbi on or the US dollar on this exchange. Quite a hot topic in China. We see quite a few exchanges wanting to do digital asset exchanges. So Binance right now is working in English. English is surprisingly good and you can actually go in. So let's take a look at what's inside the exchange. So right now it's currently dealing in around 10 different tokens or coins right now. It has some tokens, for example, quantum, its own token, its own token and open angs. It's also got some coins. You got Ethereum on there and NIO and NIO gas. Right now at its current rate, it's actually trading with a trade volume of around 4 million USD a day. This is quite, quite, quite high because it only just recently launched. So it recently added NIO on the 11th of August and it actually has a huge trade volume for NIO. So for example, if you look at NIO in terms of trade volumes, you can actually see Binance up there right after Bittrex. So right now it's taking up 23% of the trade volume for NIO just almost two weeks after it added NIO onto the exchange. For these exchanges to work and do well, you need a huge trade volume. Its potential currently is based on its business strategy and its overall competency. So in terms of volume, it can handle around 1.4 million orders per second. So that's kind of the main selling point of Binance. It's a high performance trade platform. In terms of what its trading and its advertising, it's doing quite a lot to advertise itself. And that's one of the ways why it's getting so many people on the platform. Another thing that it's doing is it's doing zero trade fees until around the 24th of August. So right now the trades are free on Binance and it's a way to pull users onto the platform. Eventually what they're going to do is you're going to have a 0.1% fee, trading fee for all transactions on Binance. That's actually quite a bit lower than Bittrex. For example, Bittrex has a fee of 0.25% commission. But of course, one thing about exchanges is that safety is one thing and having a good team is one thing, but proving itself over the long term is yet another. So currently it's a new exchange and it's still going to be has yet to prove itself. One of the strategies that's in China using is that it's listing up more rare coins that are very popular in China. So instead of just going for your traditional Manero, your Dash, your other top 10 cryptocurrencies, it's listing more rare coins such as OpenAnx. And that way it can pull other users over to start trading on this platform because you have access to more rare coins. And we see that as a strategy for a lot of other crypto exchanges, for example, Cryptopia or Ether Delta, where they're listing different coins. More importantly, it has an ICO session, just like kind of hit BTC. So you have ICOs being listed on this exchange. We've seen ICOs are very huge in China right now. So we have two, one is one called Tron, one is called LLT. So having ICO projects listed on here means they can a generate revenue because they charge for listing these coins. And also they can pull people over because they probably would offer more exclusivity for these coins and be one of the top exchanges for these new coins. So they're definitely not trying to target classic top 10 cryptocurrencies right now because other exchanges will have more volume, but they're targeting newer coins and also Chinese coins as well. One thing of interest is what is going to happen to trade volume once there are fees because right now they have free of fees. But once fees are actually implemented on a platform, will they still have a high platform and will they still support this insane growth rate is another issue. We've seen competition with other cryptocurrency exchanges. For example, the BTCC DAX is also going to face competition from international exchanges as well because now that you're trading, it also faces quite a lot of competition from international exchanges too. Because right now with cryptocurrencies, it's quite easy to move crypto out of China and start trading between various coins. That said, of course, China does have a great firewall. So it's unknown how much of that connection will get kind of disrupted by the great firewall. If you're trading and your connection suddenly gets disconnected by the great firewall, then it's potentially quite devastating because now that trade will go through because your order hasn't been sent. So that's probably one of the reasons why the Chinese prefer a Chinese exchange instead. So let's talk a little bit about the Binance coin and what it does. So Binance coin, the first use case would be as a discount for the currency exchange. So right now, if you actually go to your account section on Binance, you can actually use BNB on your account for fees. It gives you a 50% discount on your fees and it'll be burnt once it's used. In terms of discount rate, it's going to have diminishing returns. So that's why they're probably trying to encourage you to burn them now. So after the fifth year, there'll be no discount on trade trades using BNB. So Binance coin can just use purely to give you a discount for fees. So you can pay half your fees with the Binance coin. In addition to that, Binance is offering a coin buyback. So they have a buyback schedule of around 20% of their profits every quarter. They're going to buy back until 50% of BNB tokens are bought back. They're going to buy these tokens back and then burn them and destroy them, leaving only 100 million left in the pool. The reason why they're leaving a million here is because they're also going to build a decentralized exchange. So right now, this is a centralized exchange. They keep your cryptocurrencies, but they're trying to build a decentralized exchange as well. So in the future, BNB tokens will be used on that decentralized exchange as gas and for reducing costs for transactions. So it's clear that they have a business plan and they have a use case for BNB. We definitely see the exchange already being built and trade going on there. 4 million is quite a bit actually, but it's definitely nowhere near the levels of Bittrex and the international exchanges. So it's going to be quite exciting to see how much trade volume they can get and how much attention they can get in China. Right now, it's doing quite a lot of advertising and bringing quite a lot of different ICOs in, but of course, that strategy is pretty standard in this market. So it's yet to see how long in terms of long-term growth it can sustain this growth and keep on trading, especially after the coin, after fees have been implemented. So guys, what do you guys think of Binance? Have you guys started using Binance yet? Are you interested in trying out Binance? Leave a comment below. I would love to hear what you guys think and what you guys think about the token as well. Guys, thank you so much for watching this episode. Remember to subscribe for more videos like this. See you next time.