The Binance cryptocurrency exchange announced the completion of its 16th BNB token burn.
It destroyed nearly 1.3 million tokens that are worth $ 393 million combined.
After the launch of its native token, the world’s largest exchange by reported trading volume committed to burning half of its circulating supply (100 million BNB).
According to the first version of the BNB whitepaper, Binance burned 20 percent of its quarterly profits. However, this has not been the case since last summer.
The current version of the whitepaper states that the number of tokens Binance destroys each quarter is determined by the trading volumes on its crypto-to-crypto platform recorded in the previous quarter:
Every quarter we will destroy BNB based on the volume of trade on our crypto-to-crypto platform until we destroy 50% of all BNB.
Last quarter, Binance burned BNB worth $ 595 million. FTX CEO Sam Bankman-Fried speculated that the exchange’s earnings could hit $ 750 million this quarter.
The percentage of burns in the second quarter remains unclear as Binance does not publicly disclose such numbers.
Binance commented on the matter on their January blog post, which stated that “accelerated incineration” was required to speed up the process significantly. Otherwise, it would take 27 years to achieve the aforementioned goal of destroying half of the total circulating supply of the token in order to materialize
No price spike
By permanently removing its native tokens from circulation, Binance is making the remaining tokens scarcer.
While the mammoth token burn is undeniably bullish for BNB, the cryptocurrency barely moved from the announcement. It is currently flat at $ 302, according to the BinanceUS exchange.
Image from tradingview.com
Nonetheless, Binance Coin remains one of the top performing cryptocurrencies of 2021. It’s still up a staggering 753 percent since the start of the year, despite falling 56 percent since its peak in May.