Binance crypto exchange burns 3,477,388 of its BNB tokens worth $ 60.5 million.
The exchange practices such a burning of tokens on a quarterly basis..
However, so far this does not directly affect the BNB rate..
International consortium of news organizations developing transparency standards.
Binance has announced the 12th BNB coin burn for a record $ 60.5 million. The crypto exchange hopes that this will stimulate the growth of the token.
Supply volume adjustment
On Friday, cryptocurrency exchange Binance announced the next quarterly burning of its Binance Coin (BNB) coins – ERC-20 tokens created on the Ethereum blockchain. This time, an unprecedented amount of coins was withdrawn from circulation – 3,477,388 BNB, which is equivalent to $ 60.5 million.
Both of these figures, both in USD and in BNB terms, have become record-breaking For comparison, the previous time the number of destroyed tokens was about 3.374 million, or about $ 52.5 million.
# Binance’s 12th BNB burn is the biggest ever recorded, both in terms of #BNB and $ USD value.
3,477,388 BNB gone forever.
$ 60.5M USD value
"I am more certain about the future of crypto than ever." – Read @ cz_binance’s recap of the last 3 years, and plans for the future.
– Binance (@binance) July 18, 2020
Binance burns a record amount of BNB tokens
Binance regularly burns its coins, which are the primary means of settlement on this cryptocurrency marketplace. Friday’s burning was already the 12th in a row. According to the company’s strategy, Binance intends to burn BNB tokens on a quarterly basis until the volume of their supply is reduced by exactly half to 100 million tokens..
What other crypto projects are actively burning their own tokens? Join the discussion in our Telegram channel – and you will find out everything!
The project team uses 20% of their profits to buy Binance Coin on the open market. She believes that by adjusting the supply of her currency in this way, she will be able to determine the rise in the price of BNB..
Does the circuit work?
This approach to the balance of supply and demand, at first glance, looks very reasonable. However, it should be admitted that Friday’s token burn could not significantly accelerate the BNB rate. So, the very next day, on Saturday, the currency was trading with an intraday drawdown, holding above the $ 17.00 mark.
It is possible that members of the crypto community preferred to focus on other macro news. As the editorial staff of BeInCrypto reported the day before, the Malaysian regulator added Binance to the blacklist and announced that it was violating local securities laws, for which it could be subject to criminal liability. However, this hardly frightened investors, since earlier the Malta regulator similarly unsuccessfully tried to expel the exchange from the country..
Today, trading has revived slightly and the coin has moved into the green zone, however, this may be due to the current weakening of Bitcoin. At least BNB strengthened more against him than against USD.
At the moment, the coin is ranked 8th in the ranking of cryptocurrencies with the largest market capitalization, according to Coinmarketcap. Its capitalization is now $ 2 778 824 776 USD.
Meanwhile, Binance itself is celebrating its 3rd anniversary this month and is full of optimism about further growth prospects. So, we recently said that Binance bought a startup Swipe, the market leader in issuers of crypto debit cards, to issue its own card..
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