Binance Completes Binance (BNB) Coin Burn Worth $30 Million

Binance Completes Binance (BNB) Coin Burn Worth $30 Million

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Yesterday, April 15th, the development team at Binance completed the third quarterly scheduled coin burn of 2,220,314 BNB valued at a staggering $30 Million at the time of the event. This puts the total supply at 194,972,068 and the circulating supply at 114,041,290 BNB tokens.

Every quarter, the Binance team use 20% of the platform’s profits to buy back BNB and destroy them. Their target is to buy back a total of 100 Million tokens for destruction. This means there is another 94,972,068 BNB tokens left for them to achieve this goal.

In anticipation of the coin-burn, the price of BNB had skyrocketed to levels of $13.76 by April 14th, only to drop to the current levels of $12.39. The rise in value of the token is an observable pattern that was also seen back in January 15th when a similar coin burn of 1,821,586 BNB happened. During that period, BNB shook the markets and peaked at $22.95 only to drop to $11.14 two days later.

According to the BNB whitepaper, the total token allocation was at 200 Million. The funding team and angel investors were allocated 40% and 10% of this amount respectively. The other 100 Million was scheduled for the ICO phase that was open to the public. During the three phases of the public sale, one Ethereum would buy you 2,700 BNB in the first phase; 2,500 BNB in the second; and 2,300 BNB in the last. Also, the development team of the exchange has encouraged using BNB as the preferred token for trading on the platform using discount rates in a 5 year plan.

In the first year, exchange fees, withdrawal fees, listing fees and any other fees would be discounted at a rate of 50%. The 2nd year, this discount would reduce by half to 25%. Same thing would happen in the third with the discount dropping to 12.5%. The fourth year would be the final year of discounts at a rate of 6.75%: also half the rate of the previous year.

The Binance exchange has enjoyed dominance in the cryptocurrency markets and is ranked first with respect to daily trade volume and according to coinmarketcap.com. The exchange is currently doing $1.5 Billion in trades at the moment of writing this. This is impressive for an exchange that only completed its ICO in July 2017. However, the exchange was forced to move its servers and headquarters out of China and into Japan in September 2018. This was in anticipation of the Chinese government’s increased stance against cryptocurrencies in its territories.

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About Jenny

Molly Jane is a Russian Literature major from California with a background in writing. She joins CurrencyTimes after working as a freelance journalist and blogger.

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