Since the launch of Binance’s mainnet in April 2019, the usability of the native BNB token has soared as more and more crypto projects have chosen to issue and exchange their tokens over the Binance chain, May 29, 2019.
How BNB Is Used over the Chain
Binance is undoubtedly the king of cryptocurrency exchanges, especially with the recent launch of their DEX product.
Since the mainnet was launched, 24 projects have publicly declared their support for the chain by announcing token issuances over Binance’s blockchain.
Projects that have chosen to issue tokens on Binance include Harmony, Raven Protocol, and Fantom Foundation. The use cases of these projects are incredibly diverse, ranging from interoperability (Fantom) to training deep neural networks (Raven).
The use of BNB in this equation helps to facilitate transactions by acting as the currency in which fees are deducted to move across the chain. This has attracted criticism as it functions like GAS on the Neo network. Community members have called for the removal of GAS in favor of fees in NEO, but there are many valid counter-arguments regarding the economics of using NEO for fees.
Binance chain recently forayed into entertainment, gaming, file sharing, and wallets. Several exchanges like Changelly and Bitmax have recently listed BNB as a tradeable asset while wallets like Exodus, Infinito, and Magnum have added storage for BNB.
Besides launching their DEx, Binance’s traditional centralized exchange has also made headlines as of late. After the hack, many critics came out of their shells to mock Binance for claiming to be the safest exchange, but this was unfounded given their use of an insurance fund to absorb all losses without passing it on to users.
Moreover, Binance acted in a transparent and efficient manner, earning them praise from other prominent community members.
Binance plans to introduce margin trading and have even gone as far as to launch a beginners training module for margin trading. Their dedication to creating a healthy environment is a key factor to their dominance and perceived trustworthiness.
Even if the shift from centralized exchanges to DEx’s happens, Binance is already well placed to capitalize on this compared to competitors like Coinbase and Bitfinex.