EToro offers you $250 for the first $5K transaction in any crypto! * Read our eToro analysis now. U.S. residents from accessible states, served by eToro USA LLC. Crypto exchange Binance successfully burned 1,099,888 BNB tokens worth $592 million at current rates.
What Happened:
In cryptocurrency, a “coin burn” is in some ways a share buyback.
Binance’s token burn program includes buying back and destroying BNB tokens per fifth, reducing the total BNB token supply. However, not outside holders, Binance burns tokens from their squad treasury.
“A burn has the same economic impact as an airdrop, but it does not require as many tx on the blockchain and is distributed equally.”I’m still shocked that few recognize this, “Binance CEO CZ told Twitter.
The price effects of permanently withdrawing these BNB tokens from the market are likely to have a positive effect if BNB demand remains steady, claim some market proponents.
Why Binance Matters:
When Binance first launched in 2017, it committed to burning 100 million BNB, or half the total supply of the coin.
Recently, the largest crypto exchange decided to step up the pace it burns tokens.
“The existing accelerated burn will be around 5-8 years to complete the 100 million BNB,” Binance said in a blog post.
With each burn, BNB’s dollar sum lost has risen, the latest being the biggest burn to date.
Throughout April, BNB has outperformed Bitcoin (BTC) by nearly 100 percent.
To date, the token has returned 1300 percent and over 43,000 percent since the 2017 initial coin offering (ICO).
At press time, BNB traded at $521.28, down 4% in the past 24-hours.
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