Binance reported about successful burning of Binance Coin

Binance reported about successful burning of Binance Coin

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The Binance Exchange has reported on the successful third quarterly burning of its own Binance Coin tokens.

Binance reported about successful burning of Binance Coin

The destruction was carried out by 2,220,314 BNBs for a total of about $30 million, representing 20% ​​of the company’s revenue for the last quarter.

As noted by the CEO of Binance Changpeng Zhao, in dollar terms the amount was less significant than last quarter, in Binance Coin – more. He explained this by saying that the volume of trading in the market of cryptocurrency, including Binance, has recently declined, which is why the crypto exchange collected fewer commission in Fiat. However, the price of Binance Coin also decreased.

“This is an established property of the economy of our token. The price is lower, so BNB are burned BNB faster” Zhao writes.

As in previous cases, after the official confirmation of the burning of coins, traders, pursuing short-term gains, rushed to get rid of the asset, and with it its price went down.

Predicting how the price of the coin will behave after that is not easy. For example, in January, after the second burning, the cost of BNB, shortly before it exceeded $23, went down sharply, dropping below $9. True, it is worth remembering that this happened against the background of a general fall of the market, under the tide of which the coin fell.

At the same time, Zhao notes that Binance Coin’s price has been quite good for the other cryptocurrency, which caused many market participants to consider their own exchange token as a tool to protect assets in the period of high volatility.

CEO Binance also reported that more than 20 teams are participating in the Binance Dexathon competition, which are working to create a decentralized exchange. Currently, Binance Coin is an ERC20-token on the Ethereum blockchain, but with the release of Binance Chain BNB will become a cryptocurrency on its own blockchain.

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