Binance burns about 808,888 in its quarterly token burn which spiked the token to outperform other tokens on the market as we can see in the coming altcoin news today.
The exchange is dedicated to the commitment to reduce the total token supply periodically. However, the Binance CEO Changpeng Zhao announced that the company will relinquish the entire BNB allocation in order to promote the growth of the ecosystem and he stated:
“Today, on behalf of the Binance team, I am announcing that we will give up all of our BNB allocations and contribute towards our commitment to burning a total of 100 million BNB. This commitment starts during today’s quarterly burn, during which 808,888 BNB (currently worth US$23,838,000) is being burned.”
The burn of the token is about 40 percent of the total BNB supply that belonged to the Binance team. Now, It will become a part of the cycle of period token burning that the company tries to maintain. In other words, the team won’t allocates any BNB for itself. The CEO also emphasized the commitment to burn more than$2.5 billion worth of BNB token which belongs to the team and he stated:
‘’We are not going to cash a penny of that out… we’re going to burn it all.’’
His statement had an immediate effect on the market. The trading community had a strong enthusiasm and led the token to outperform other cryptocurrencies. The expectations about decreasing the total supply of a currency is always a good idea if you want your token to increase in value. This effect was also seen in other cryptocurrencies which has a similar effect as the halving process and many expect this to happen with Litecoin as well.
Of course, this major decision can have a very important role in the growth of the BNB ecosystem. There are people who are not satisfied with the statements that the CEO gives and when he says that the Binance team is not money-driven, it is not 100%. No one can deny that Binance is on a major mission to increase the freedom of money but no one has that big altruistic reasons. This is a business strategy at first which shows how binance became the leading exchange in the world by volume.
As noted in the latest cryptocurrency news, the demand for the BNB token is stable so we wait until next time when binance burns a huge chunk of its tokens.
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