The world’s largest cryptocurrency exchange, Binance, shared a happy news today for the owners of the exchange’s own token, Binance Coin (BNB). Binance CEO CZ (Changpeng Zhao) announced on his Twitter account that millions of BNB tokens will be burned.
Zhao, in the statement he shared, “BNB is deflationary. If you don’t know this, you lack the basic financial knowledge that will bring you luck in this world. Sad but true. Now is the time to learn.” made statements. According to the CEO’s statement, the BNB token worth 741 million 840 thousand 738 dollars will be removed from circulation ‘soon’.
Binance CEO CZ’s share
With CZ’s sharing of this news, there has been an increased demand for BNB. Following CZ’s share, BNB’s value rose more than 5% to over $420. BNB reached an all-time high of $ 675 on May 3, 2021, then quickly dropped to $ 260 on May 23, with a decline in parallel with the market.
What is coin burning?
The act of burning a coin/token means the permanent removal of a certain part of a token from circulation in the market. If demand remains the same as a result of this action, the token’s value will increase as supply decreases. As demand increases, the value of the token increases at a higher rate.
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