The Binance cryptocurrency exchange ended the 15th quarter burn of BNB tokens on Friday. BNB tokens are used to pay fees on the platform. The stock exchange entitles those who have the appropriate amount to discounts.
Imagine you’re burning half a billion dollars, wait, don ‘t think. It’s real. #BNB https://t.co/rMFbiufFSG
– CZ 🔶 Binance (@cz_binance) April 16, 2021
Burning reduces the supply of tokens
Burning the token essentially removes it and permanently takes it out of circulation. This limits the supply of tokens, which theoretically raises the price of those that remain.
Binance burns tokens every quarter. With the recent firing, the total supply of BNB decreased from 170 532825 BNB to 169 432937 BNB.
This 1,099,888 burnt BNB is worth about $ 595 million at current prices. This is the highest consumption of BNB in terms of the dollar, a record driven by the rising price of BNB.
The token price jumped 1,520% this year, from $ 38 to the highest price of around $ 606 on April 12.
Shortly afterwards, the BNB price fell and the token is now worth $ 527. In the last week alone, the BNB price has risen another 25% to the current price of $ 527.
CEO Changpeng Zhao attributed BNB’s recent growth to the growing decentralized financial sector (DeFi) – Binance took a certain market share from Ethereum through its own Binance Smart Chain – and Coinbase’s direct listing on Nasdaq this week.
Yes, it helps BNB too, said Zhao.
In 2017, when Binance first launched BNB, it promised to burn a total of 100 million BNB. This corresponds to half of the total GDP supply. According to research from The Block, Binance has so far burned 15.3% of BNB’s supply.
How much has Binance earned?
Bankman-Fried himself, CEO of FTX decided to make some calculations. The director of one of the leading exchanges for cryptocurrency futures estimated that Binance could have generated $ 1 billion in revenue. He based his predictions on Friday’s burning.
Historically, the Changpeng Zhano stock market has burned about 20% of profits. But during the recent event, the stock market lost by much more than 20%. So far, however, we do not know the exact proportion.
1) Some thoughts on BNB’s latest burning: https: //t.co/tKIimtOWZw
– SBF (@SBF_Alameda) April 16, 2021
