Binance announced a quarterly burn of 1.99 million BNB coins worth about $477 million at the current market price.
Binance conducts a quarterly automatic burn of BNB tokens, which reduces the circulating supply of the token. The company has been following this practice since October 2017.
Binance removes 1.99M BNB coins from circulation
Changpeng Zhao, CEO of Binance, chirpAnnouncing the Quarterly Burn:
Quarterly #BNB burns, according to the general algorithm.
I’m told there will be more (big) cross-chain transactions soon, to distribute/distribute the coins to more addresses. There is nothing to worry about.”
Through the automatic burn procedure, 1.99 million BNB coins were removed from circulation, reducing the circulating supply to 153,857,171 BNB. Binance performs an auto burn by setting the amount of BNB based on the price of the coin and the number of blocks created on the BNB chain.
What are the best Binance alternatives in 2023? Read more here
The 24th Quarterly Burn also consists of 747.51 BNB as part of Binance’s Pioneer Burn Program to support users who have lost their tokens by sending them to wrong addresses. On April 14, BeInCrypto reported that Binance conducted its 23rd quarterly burn to remove 2.02 BNB from circulation.
What does society think?
While most investors happy With the burn because it reduces the supply of the token, some have shown skepticism. Zhao wrote on Twitter that there will be big moves on the chain after the burn. But some members of the community compared his statement to the accused FTX founder, Sam Bankman-Fred
Some criticized the burning methodology. member of the community books:
After 24 burns, has one BNB coin been bought from the open market for burning?
Burning BNB vaults off the market is a pointless activity.”
A member of the community, unaware that this is a quarterly burn, is expected that the bid burn was done to “move the price equilibrium up”. Not to mention, there is a fear of a massive liquidation if the BNB token drops to around $220.
The coin has been trading sideways for about a month, between $230 and $256.
Get the latest version of BeInCrypto bitcoin (BTC) analysis, click here.
Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.