A remarkable statement came from Binance, the world’s largest cryptocurrency exchange. The company has carried out the 21st burn to date of Binance Coin (BNB), known as its own cryptocurrency. Thus, the supply of BNB in the market has decreased a bit more.
Binance burns Binance Coins once every three months. For those who don’t know, let’s explain: Burning a cryptocurrency means destroying a certain amount of that currency. Thus, the amount of money produced decreases. This normally leads to the appreciation of cryptocurrencies. Because of the burning, the availability of that cryptocurrency has decreased.
In Binance’s 21st burn, 2.06 million BNBs were destroyed!
When we look at the official statements made by Binance; We see that 2 million 65 thousand 52 units of BNB have been burned. These coins are worth approximately $548 million. Binance will re-execute this transaction after three months. We will find out how many BNBs will be destroyed in the next close, when that day comes.
Why is Binance Coin (BNB) being burned?
In the whitepaper of Binance Coin, which was launched in 2017, it is emphasized that this cryptocurrency should never exceed 200 million units. This is a strategy entirely determined by the developers. This is where the combustion process comes into play. According to the information in the Binance Coin whitepaper, the developer team will receive BNB with 20 percent of its profits every 3 months. A certain part of the remainder will be burned. The burning process will continue until the Binance Coin in the market drops to 100 million.
How did the burn affect the BNB price?
Above, you see the BNB price chart on Coinmarketcap. According to this chart showing the daily period, the instant price of BNB is around $259.89. However, we can easily see that the burning process that took place in the past hours had a positive effect on the prices. The main reason for the drop in 24 hours can be interpreted as the sharp fall of Bitcoin. Bitcoin, which was above $ 19,000 24 hours ago, is currently trading at $ 18,374. The decrease of about 4% has affected other cryptocurrencies along with BNB.
Last week, 2 million BNBs were printed and there was a serious theft!
We asked an expert: Whose pocket did the stolen money come from?
This content cannot be considered as investment advice.
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