Binance Burns $390 Million Worth BNB Tokens – 2nd Largest Amount Ever
Binance, the world’s largest crypto exchange by volume, has gone through its quarterly token burn, destroying $390 million worth of Binance Coins (BNB) – second largest amount in the company’s history.
The latest burn event was the second largest in history of 16 burn events. The previous was largest ever, and saw almost $600 million worth of BNB tokens burned.
Binance CEO Changpeng Zhao went on Twitter to announce the amount burned on Twitter while reassuring users that the BNB tokens held by the Binance team would never be used or sold.
In summary: 1,296,728 #BNB (390,855,150 USD) burned by @Binance.
The remaining 16m BNB unlocked, and moved to a team address, according to the schedule in the white paper.#Binance team has never used or sold a single team #BNB thus far, only burned them.
According to the original Binance Coin whitepaper, the firm made a promise to burn BNB tokens equal to 20% of its quarterly profits. With a little help of math: BNB tokens valued at $390 million burned this quarter, means Binance would have made close to $2 billion in profit since April.
The exchange removing over 1.2 million tokens from circulation, did not have an effect on Binance coin price.
The idea behind burning so many BNB tokens, is to increase scarcity and maintain the token’s value, while also bringing benefits those holding the token. Including the latest burn, roughly 16% of the 200 million BNB initially created have been burned so far. Binance have plans to remove an additional 35% of all tokens through future burns.
Looking back, Binance Coin burns have had little immediate impact on the token’s price. But the quarterly burns have removed almost $1 billion worth of BNB since the start of the year, and the token has seen massive profits.
Over the past 6 months, BNB saw a significant 1,487% rise, reaching an all-time high of $675 in May. Despite the recent market downturn, BNB is still holding strong compared to other coins in the market, trading at around $280 at the time of writing.
While Binance maintains its position as the largest crypto exchange by trading volume, it has become a witch hunt target by global financial regulators such as U.K., Cayman Islands, Italy, Japan, Thailand, Singapore, Hong Kong, Lithuania and the Canadian province of Ontario.
In addition, the U.K. Financial Conduct Authority’s ruling was followed by several major banks in Britain, such as Santander, Barclays, Monza, TSB, Nat West, Metro Bank, HSBC, and Lloyds, from blocking their customers from payments to Binance.
