Binance burns BNB worth $ 393.6 million
The cryptocurrency exchange Binance has notification completed his 16th BNB burn. The company said it destroyed nearly 1.3 million BNB for a total of $ 393 million.
After launching its native token in 2017, the world’s largest exchange committed to burning half of the circulating supply, or 100 million BNB.
Binance previously burned 20% of its quarterly earnings, according to the whitepaper’s original promise. But this has not been the case since last summer.
The current version of the white paper states that the number of tokens that Binance destroys every quarter is determined by the trading volume on its trading platform, which was recorded in the previous quarter:
“We will burn BNB quarterly based on the trading volume on the platform until we burn 50% of all BNB.”
Last quarter, Binance burned BNB worth $ 595 million. FTX CEO Sam Bankman-Fried speculated that the exchange’s earnings could hit $ 750 million this quarter.
Binance stated in January that token burn needs to be sped up in order to complete the schedule soon. Otherwise, it will take 27 years to achieve the goal of destroying half of the supply.
Tokne does not rise in price as expected
By permanently removing its native tokens from traffic, Binance is making what is left more scarce.
While the token burn was undeniably bullish for BNB, the cryptocurrency barely moved after the announcement. It is currently trading at $ 300, according to Tradingview.
Daily BNB price | Source: Tradingview
However, BNB remains one of the top performing cryptocurrencies of 2021. It’s still up a staggering 753% year-to-date despite a 56% decline from its ATH in May.
According to AZCoin News