• Binance, the world’s largest cryptocurrency exchange, completed its 24th quarterly burn of its native token BNB. The burn equaled approximately $484 million and decreased the token’s overall supply to 100 million.
• Binance also included 747.51 BNB that was burned via the Pioneer Burn Program.
• CEO Chanpeng Zhao (CZ) revealed there might be some additional “on-chain (large) transactions shortly” that will distribute the assets to more addresses.
Binance Burns Over $480 Million Worth of BNB
Binance, the world’s largest cryptocurrency exchange, recently conducted its 24th quarterly burn of its native token, burning 1,991,854 BNB tokens with an approximate value of $484 million. This process decreases the total supply of BNB tokens to 100 million. Additionally, 747.51 BNB tokens were burned via the Pioneer Burn Program to help customers who have lost access to their tokens.
CZ Weighs In on Token Burn
Binance’s CEO Chanpeng Zhao (CZ) commented on this event saying it was done “according to the public algorithm.“ He went on to say there may be additional “on-chain (large) transactions shortly” that will further distribute/spread the coins to more addresses.
Quarterly Token Burn Strategy
This strategy of sending a certain amount of BNB tokens each quarter to an address no one can access was adopted by Binance in 2017 when it launched its native coin. So far billions of dollars worth of these tokens have been burned in order for them to eventually reduce their overall supply by 50%.
Unfortunately for those holding onto these coins, there has been no price reaction from this latest token burn as prices remain fairly stagnant according to CoinMarketCap data; at time writing this article 1BNB = $273 USD which is only a 0.7% increase over 24 hours ago and a 4% decrease over 7 days ago at time writing this article..
Burning large amounts of crypto currency has become a popular way for companies and exchanges like Binance reduce their supply over time while ensuring users are compensated if they lose access to their funds through platforms like Pioneer Burn Program . Though not always successful in increasing prices or helping users regain access their funds, it’s still important for companies such as binance continue with these practices as they helps build trust among users and potential customers alike