Binance carries out its 10th token burn this removing about $38.8 million worth of BNB from its circulation for good as we are reading in today’s binance coin news.
The Malta-based crypto exchange Binance carries out its 10th quarterly token burn and removed $38.8 million worth of the BNB tokens from circulation and according to Changpeng Zhao, this is the second biggest burn when it comes to the USD value of the coins and also the third-biggest burn in terms of BNB. Zhao pointed out that this was the fourth consecutive quarter where the USD value of BNB burn grew. As some believe, the 9th BNB burn took place in the middle of October 2019 when the exchange also burned about 2,061,888 BNB tokens which were equal to $36,700,000 as compared to the $38.8 million.
Binance reported that the latest BNB burn yesterday, was very successful and in the announcement, Changpeng Zhao pointed out:
‘’The 10th quarterly burn represented the first full quarter that we factored in the performance of our most recent new products.’’
CZ meant that the Binance’s margin trading which was launched in July, and the lending launched in August and futures launched in September 2019, are a part of the full quarter. He also noted that Binance made a huge effort to increase the fiat-to-crypto options by simply adding support for the 24-global fiat currencies to the exchange. He admitted that Binance Coin is still very far away from the all-time high which was reached in June 2019:
‘’But I don’t worry about it as much, because we view BNB as a long-term play, and many in the Binance community continue to use and hold BNB.’’
The token burning is a common practice that the token issuers perform to remove a certain amount of the existing cryptocurrency from circulation. This is done by the token creators who purchase the coins back from the community and lock it away forever. The tokens are burnt for deflationary purposes and Binance already announced its token burn plans when the coin was initially launched to keep the supply of 100 million BNB. The exchange-based crypto asset’s current circulation supply is 187,536,713 BNB but after the 10 token burns, the total supply dropped to 155,536,713.
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