Binance Burned $30 Million Worth Of BNB Tokens
On April 15th, Binance’s development team managed to complete the third quarterly programmed burn of 2,220,314 BNB coins, which were worth a whopping $30 Million at that time. This makes the total supply at 194,972,068 and the supply in circulation at 114,041,290 BNB tokens.
According to their whitepaper, every quarter, Binance uses 20% of the its earnings to buy back BNB and burn them. Their target is a total of 100 Million tokens that will be destroyed, meaning that another 94,972,068 BNB tokens are left to go.
Before the coin-burn, the price of BNB had jumped to $13.76 by April 14th, only have a -2% drop to the current value of $12.26. A similar thing took place back in January 15th when 1,821,586 BNB coins where burn. During that time, BNB’s price value saw an incredible increase, peaking at $22.95 only to almost halve to $11.14 two days later.
Binance publicly announced their token burn on their Twitter account saying that:
“#Binance 3rd Quarterly $BNB Token Burn… In accordance with our whitepaper, we have now completed the burn of 2,220,314 BNB (roughly $30MM USD equivalent) for the our 3rd quarter.”
Token burning normally implies buying back a part of the tokens and destroying them thus increasing the market demand for the coin. Even though there was a noteworthy rise in the value for BNB in the days prior to the burn, on the actual day of the event, in spite of the burn, BNB’s price is negative.
Many traders expressed their confusion regarding the negative trading of BNB despite the burn.
According the whitepaper, during the first year, exchange, withdrawal, and listing fees and any other fees would have a discount of 50%. The 2nd year, this discount would be halved to 25%. The same will happen in the third year, with the discount being decreased to 12.5%. The fourth year is scheduled to be the last year of discounts at a rate that is also half the rate of the previous year, reaching 6.75%.
Binance is one of the world’s leading exchanges, being one of the dominant forces in the cryptocurrency markets, ranking first in terms of daily trade volume according to coinmarketcap.com.
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