According to the white paper, the next quarterly burning of BNB tokens is scheduled for July 18.
The popular exchange Binance will hold another coin burning Binance Coin. This digital coin was created on the Ethereum blockchain as an additional tool for carrying out activities within the exchange.
The coin is designed to reduce commission fees and provides the owner with the right to discounts and access to premium functionality on this site.
Today, Binance Coin is in the TOP 10 of the world ranking. Its emission was limited to 20 million BNB tokens and no further generation is planned. Therefore, the token is considered to be deflationary in nature and, theoretically, with each burn its value should increase. The project’s white paper states that such burns are planned quarterly until 100 million, that is, half of all BNB tokens, are withdrawn from circulation and destroyed.
The burning process itself is the withdrawal from circulation and transfer of the token to an incorrect address without a private key. All transactions of such redemption are reflected in the blockchain. According to the project plans, the first burning was carried out on October 18 last year, during which the first 986 thousand tokens were burned. Contrary to expectations, the process did not lead to a sharp rise in the rate and the price remained in the range from $1.4 to $1.7.
This was the first successful process of destroying BNB, which gave impetus to the gradual growth of the rate, and by December it reached $10.
Exactly three months later, on January 18 of this year, in the process of the second burning, 1.8 million tokens were taken out of circulation. By January 23, the price of the Binance coin (BNB) reached a record high of $24, but could not resist and went down, falling to $8.
On April 18, during the third planned phase of coin reduction, 2,220,314 BNB were sent to an incorrect address. In dollar terms, at that time, the developers burned approximately $30 million. This did not lead to sharp price fluctuations, although many traders hastily drained assets, which caused the price to decline. However, during a period of fairly high market volatility, the price of Binance Coin remained at a fairly stable level.
Thus, experts do not undertake to predict the behavior of the coin’s price after the upcoming fourth burning. The cost of Binance Coin at the time of writing is $13.5.. Currently there are 114.0 million in circulation, the total trade turnover is $35,643,640.39
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