Binance announces the completion of the 16th burning process of BNB cryptocurrencies…Details here
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Answer Binance announces the completion of the 16th burning process of BNB cryptocurrencies…Details here
announced Cryptocurrency exchange Binance announces the completion of the 16th BNB cryptocurrency burning process.
Binance destroyed approximately 1.3 million BNB which has a total value of $393 million.
After Binance launched its native cryptocurrency BNB, Binance committed itself to burning half of the circulating supply (100 million BNB).
Binance used to burn 20% of its quarterly earnings, according to the initial version of the BNB whitepaper.
Then and exactly, since last summer, that’s no longer the case.
The current version of the BNB White Paper states that the number of cryptocurrencies destroyed by Binance each quarter is determined by the trading volumes on the platform recorded during the previous quarter:
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That is, every three months, Benansen destroys BNB based on the trading volume on the cryptocurrency exchange with the goal of burning and destroying 50% of the total BNB.
in the last quarter, Binance broke a record Burning BNB worth over $595 million.
FTX CEO Sam Bankman Fred has speculated that Binance’s profit for this quarter could reach $750 million.
The percentage of burning for the first quarter of 2021 is still unclear because Binance has not publicly disclosed these numbers.
Later, Binance explained that the rapid burning of BNB coins is necessary to significantly speed up the process.
Otherwise, it will take 27 years to reach the aforementioned target (50% burn of the total BNB supply).
The price of the digital currency BNB was not affected by the burning process:
By permanently removing BNB from circulation, Binance is making the remaining BNB tokens scarcer and deflationary.
While the coin burn is undoubtedly positive and bullish for the BNB price, the coin barely budged when the burn was announced.
Rather, the coin is currently stable at $301, according to coingecko.
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Looking at the scenario of the past burning operations, we find that the price of the currency rises over a longer period of time, meaning that the impact process comes after a longer time.
Binance Coin remains one of the best performing cryptocurrencies in 2021.
It’s still up 753% since the start of the year although it’s down 56% since its May high.
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