Binance Burns Hundreds Of Millions Worth Of Coins, Crypto Market Reacts
Binance has now burned over $300 million worth of crypto coins in its quarterly burns. The Binance burn consisted of 1,296,728 BNB burned, and an additional 5,163 burned as part of the Binance Pioneer Burn Program. Keeping its promise of helping out developers on the Binance Smart Chain who, by honest mistake, lost their BNB coins to smart contract addresses.
This will make it the 16th scheduled quarterly burn that Binance has carried out since its inception. The burn was announced in a report posted by Binance on their official website. Binance has now effectively burned 1,296,728 BNB coins in its latest burn.
Promises Kept By Binance
Binance had pledged that it would burn 20% of all quarterly earnings in the form of BNB tokens. And so far, the crypto exchange giant has not floundered on this promise. The scheduled burn took place on 18th July and the amount burned suggests that the exchange might have brought in over 2 billion in profits for the last quarter.
In line with the Whitepaper, 16 million BNB has now been unlocked and sent to the team’s wallet. But so far, the Binance team has never sold a single BNB coin from the team address. Maintaining that coins in the team wallet have so far only been burned.
The first Binance burn had taken place on the 18th of October, 2017. At this time, Binance was still just a small crypto exchange. This meant that the first burn had little to no impact on the coin price at this junction. Despite the exchange burning approximately 1 million coins in the earliest burn.
Binance has continued to burn BNB crypto coins on schedule since then. So far carrying out 16 coin burns to date. The largest in fiat value being the 15th coin burn carried out in April of 2021. Where a total of 1,099,888 BNB coins were burned, with an approximate value of $600 million. Although this was not the highest in the volume of BNB coins burned.
The highest number of BNB burned at one time was carried out on January 19, 2021. In this case, Binance had burned an enormous 3,619,888 BNB coins in what had been the largest burn by fiat amount and BNB amount at the time.
Crypto Market Reactions
So far, the price of BNB has not reacted positively to this news. The coin continues to trade at a loss, down 2.4% in the last 24, as the wider crypto market suffers. BNB now trades at $297 per coin, and general sentiments across the board continue to be negative.
The 14th burn held in January had been received positively as the price had ballooned after the news of the burning broke. Coin burns are important in creating scarcity and increasing the value of coins. And due to the deflationary nature of the coin, more coins can simply not be created by developers.
Binance plans to carry out these scheduled burns until 50% of the entire supply is bought back and burned. Amounting to 100 million coins burned and lost forever.
The 100 million coins were initially forecasted to take 27 years to burn. But according to the crypto exchange, the increased trading volumes puts the complete burn currently at 5-8 years.
Investors and interested parties can track the burn transactions here. Binance also posted a link to the transaction ID.Source