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Wednesday, 01 Sep 2021
Crypto Notes
A weekly newsletter decoding crypto, blockchain and the entire ecosystem.
By Rohas Nagpal

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All about Binance Coin (BNB)

Over the last two weeks, we discussed Dogecoin and Cardano. This week we take on Binance Coin (BNB).

Did you know?

BNB is the fourth largest crypto in the world by market capitalization.

BNB has a market value of over Rs. 577,000 crore.

Over the last 24 hours, more than 13,500 crore of BNB has changed hands.

Before we dive deeper, let's check out the latest news from the crypto universe.

The people of El Salvador are protesting against Bitcoin, and demonstrations have started on the streets. El Salvador is the world's first country to make Bitcoin legal tender. Workers, veterans, and pensioners are protesting because of Bitcoin's volatility and instability.

The person behind the massive $643 million hack on the Poly Network has returned all the funds.

The Cardano blockchain is on the cusp of a major upgrade. This will enable the creation of fungible and non-fungible tokens (NFT) on the blockchain.

1. What is Binance Coin (BNB)?

Name: Binance Coin

Symbol: BNB

History and overview:

Binance Coin (BNB) was launched in 2017 by Binance, one of the world's largest crypto exchanges.

200 million BNB was initially issued. Binance regularly "burns" some BNB and continues to do this until only 100 million BNB remain.

BNB is a utility coin that can be used on Binance Chain and Binance Smart Chain. Some of its use cases are:

1. Crypto traders get discounts if transaction fees on are paid using BNB.

2. Crypto traders can also use BNB as collateral for loans.

3. Payments for third-party services.

4. Participation rights on Binance Launchpad.

5. Delegated Staking on Binance Smart Chain, which uses Proof-of-Staked Authority (PoSA) consensus.

2. Metrics

As of 30 August, its core metrics are:

Price metrics

Current price: INR 34,350
All-time high (May 10, 2021) INR 50,590.25
All-time low (Aug 01, 2017) INR 7.04

Below is the graph for BNB prices over the last year:

Supply metrics:

Circulating supply: 168,137,036 BNB
Total supply: 168,137,036 BNB
Maximum supply: 168,137,036 BNB


Circulating supply is the number of coins/tokens in public hands.

Total supply is the number of coins/tokens created minus the number burned.

Maximum supply is the maximum amount of this crypto that can ever exist

Marketcap & Volume metrics:

Market Cap: INR 577,820 crore
Fully Diluted Market Cap: INR 577,820 crore
Volume (24h): INR 13,564 crore
Volume / market cap ratio: 0.02119
Velocity: 10.13


Market cap = Current Price x Circulating Supply

Fully Diluted Market Cap would be the market cap if the maximum supply were in circulation

Volume (24h) is the fiat value of this crypto traded over the last 24 hours

Dominance measures a crypto's total market capitalization relative to the total market cap of all cryptos

Volume/market cap ratio = 24h Volume / Marketcap

Velocity = 24h Volume/Circulating Supply

Vladimir Club Cost is the cost of owning 1% of 1% of an asset's "eventual" supply

RoI metrics:

Year Returns
2020 174 %
2019 125 %
2018 -28 %
2017 616 %

Risk metrics:

  Volatility Sharpe ratio
Last 30 days 0.8 6.5
Last 90 days 0.9 1.8
Last 1 year 1.5 2.7
Last 3 years 1.1 1.6


Volatility measures the annualized standard deviation of daily returns

Sharpe Ratio measures the excess return for a given level of risk

3. Wallets

Trust Wallet and MetaMask are two of the most popular wallets for BNB.

Note: The data/graphs are from CoinMarketCap, Messari, and Future Money Wallet. Figures as of 30 August 2021.

Next week: All about XRP

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Rohas Nagpal is an author, an amateur boxer, a blockchain architect, a Tintinologist and a retired hacker.

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