Binance has announced a quarterly burn of 1.99 million BNB coins worth around $477 million at the current market price.
Binance conducts quarterly auto-burn of BNB tokens, reducing the token’s circulating supply. The company has been following the practice since October 2017.
Binance Removes 1.99M BNB Coins From Circulation
Changpeng Zhao, the CEO of Binance, tweeted, announcing the quarterly burn:
“The quarterly #BNB burn is done, according to the public algorithm.
I was told there will be some more on-chain (large) transactions shortly, to further distribute/spread the coins to more addresses. Nothing to be alarmed about.”
Through its auto-burn procedure, 1.99 million BNB tokens have been removed from circulation, reducing the circulating supply to 153,857,171 BNB. Binance conducts auto-burn by determining the amount of BNB based on the coin’s price and the number of blocks generated on the BNB chain.
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The 24th quarterly burn also consists of 747.51 BNB as a part of Binance’s Pioneer Burn Program to support users who lost their tokens by sending them to the wrong addresses. On April 14, BeInCrypto reported that Binance conducted its 23rd quarterly burn removing 2.02 BNB from the circulation.
What Does Community Think?
While most investors are happy with the burn because it decreases the token’s supply, some have shown skepticism. Zhao wrote on Twitter that there would be large on-chain movements post-burn. But some community members compared his statement with indicted FTX founder, Sam Bankman-Fried
Some criticized the methodology of the burn. A community member wrote:
“After 24 burns, has a single BNB been bought from open market to burn?
Burning a treasury of BNB out of market is a pointless activity”
A community member, unaware that this is a quarterly burn, anticipated that the supply burn was conducted to “move the price equilibrium higher.” Not to mention that there is fear of large liquidations if the BNB token drops to around $220.
The token has been trading sideways for around a month, between $230 and $256.
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Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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