The utility token launched by the centralized exchange Binance in 2017 is called the Binance Coin or BNB. This token is predominantly used for paying the trading fees charged by the platform. Earlier, it served as a necessity to participate in the Binance Community vote and could also be used for online shopping at various participating stores. A slight trading discount is provided to those traders who use BNB to pay the fees. This helps Binance incentivize their utility token.
Binance coin (BNB) is often seen as a utility token, helping investors to participate in the Binance ecosystem rather than just serving as a mode of investment. This is different from Binance Smart Chain (BSC), which investors often tend to speculate upon with respect to prices. Binance Smart Chain was a blockchain network created by Binance to challenge Ethereum, providing the functionalities of the same but at lower prices. Investors often confuse BSC with BNB. While BNB is the utility token of the Binance ecosystem, BSC is the smart contract platform used by Binance to give competition to Ethereum.