Crypto Academy week 9 - Homework Post for @yohan2on // Done by @chilaw

chilaw (68)Beginner[1,2,3,4,5,6,7,8,9,10]in SteemitCryptoAcademy • 3 years ago

Hello steemkans, I hope we are all good? I am happy to be able to aprticipate in this week's homework assignment post by our great Profs and assistance @yohan2on and @kouba01.
Homework Task for The Week
**Write about any one of the following Altcoins :

Litecoin (LTC)
Ripple (XRP)
Binance (BNB)

INTRODUCTION
Binance Coin (BNB) is one of the Altcoins known to have gained entry into the cryptocurrency world. Altcoins here is known to be any cryptocurrency coin which existed after the first generation coin (Bitcoin). All this other coins other than bitcoin may be said to be alternate to bitcoin or Altcoin. Both the second and third generation cryptocurrencies where Ethereum belong to are all referred to the Altcoins. Binance coin BNB is traded on the largest cryptocurrency exchange platform “BINANCE EXCHANGE”. It was known to be the largest exchange platform in the first quarters of the year 2018 to have raided in over 1.4million transactions per seconds. This did not only put the Binance Exchange on the top spot but also made a wide publicity of its native coin BNB to regain more value to its worth. Just like what Ether is to Ethereum, so is BNB to the Binance exchange.
The native coin which was created in mid of 2017 was first launched on the Ethereum blockchian on the ERC-20 before it was later swapped to its own blockchain, precisely on the Binance Chain. Just unlike what we have in the Ethereum blockchain with capacity to run smart contracts on it, the Binance Chain does not offer such services. BNB, a native coin in the Binance blockchain is used in fees payment and also can be trade for other coins in the exchanges. The founder of Binance coin Changpeng Zhao’s came up with this idea while creating this token to enable it resolves all pending issues in the exchange by proffering solutions to the crypto-infrastructure.

BNB EARLY TAKE OFF AND SURVIVAL
After the launch of BNB in April 2017, it is important to take about the early kick of BNB in the Binance Exchange platform. To draw back our minds to details, Binance Exchange was launched not until its native coin the BNB was launched 11-days before its exchange take off. But before the BNB was fully on boarded, there was ICO issuance of the native coin which saw 200 million of the BNB sold. This ICO was seen to last for eight (8) good days with percentage distribution made in these categories;

The Binance Team – Got 40% of the 200million BNB out for ICO (80 million BNB)
The Angel Investor – Got 10% of the 200million BNB out for ICO (20 million BNB)
The Public sales (General Investors) – Got 50% of this share which amounted to 100 million BNB.
(Over $600,000 worth of value was generated from this ICO)

The BNB were offered for just 15cents per token during the ICO. Just when the BNB was launched in China but long it found it difficult to operate under the government which directly made the Exchange cooperate head to be relocated to Japan, Taiwan, and then Malta. Though there are plans too to relocate to Bermuda and coast of France. Just a year after its launch, Binance Exchange with BNB as its native coin was announced the biggest Exchange platform but this could not defend the serial attacks it got from hackers. It was known this exchange was attacked in 2019 by hackers who stole 7,000 BTC. This high profile attack was seen to undermine the security checks put in by this Exchange giant. Being a centralized platform with decentralized token sales, it promised to compensate all users who lost their tokens during this ugly trend. This is one of the advantages of a centralized systems; it helps to bare loss of assets with investors on account of serve breach.

BURNING IN BNB
This was a strategic move from the Binance team to salvage the rising depreciation of the BNB value over time. The Binance team was strategic about this by using 20% of total profit made from the trade to finance this activity. **How was it done? ** 20% of equivalent BNB in the trade is bought over by the team and completely burned out of the system to enable the coin experience a little form of scarcity and value pushed upwards. BNB burn is seen to happen quarterly with the last which happened in October 2020. So far, the balance of BNB in circulation is seen to be 154million tokens with over 46million BNB out of the trade via burn. Let us also remember that the essence of this burn is to achieve value for BNB token and also remove the 100million worth of BNB that went into circulation via the ICO. To my own understanding, I feel that the initial plans of the Binance team was to float a 100million BNB but due to issues of capital to upgrade and expand the platform, a double of that figure was offered to public investors for this purpose.

INVESTMENT IN BNB
Deciding if one could make an investment plan in the BNB is an individual decision and should be dealt with directly. This coin was seen to primarily play a role in handling payment of transaction fees but it has over the years shown significant value amongst the cryptocurrency tokens. The price of BNB during the 2017 launch and ICO was seen to be 15cent per token, but as of the time of this article 18th April 2021, 1BNB = $525. Thus, this should be the very reason most investors would want to cash in into investing into BNB token. As the company continue to engage in the BURN, this would see the value keep been bullish.
In other hand, an investment in BNB is a direct investment to Binance Company. We all know that Binance is a centralized system and not a decentralized system. Therefore, their operations are subject to regulations especially from the government which makes it a dicey one. We all know the dangers of operating a centralized system, hence should be considered before investing all our assets.

USES OF THE BINANCE COIN (BNB)

It can be used in fee payment in the Binance Exchange and also be traded with other cryptocurrency tokens in the exchange platforms.
- For members who have actively stayed over 5 years in the system and also pay the 0.1 transaction fees, get some kind of rebate from the exchange. This is a form of incentivizing and given back to its true members.
Encourages the payment of leisure without many bottlenecks during process. Hotel reservation and flight bookings can easily be done through its robust payment system.
It has an expanded payment system that allows for flexibility in the use of its credit card payment services and merchant services.

Before I conclude, I will like to briefly talk about the following sub topics about my dear BNB. I cannot end with mentioning them
a. HOW DO I BUY BNB;