Crypto

$ 393.6 million was burned by Binance. What will it be used for?

July 19, Binance recently launched a new BNB token burnWhat is the meaning of this strategy and it good news on the price of cryptocurrency, but why ?

Binance burns about $ 400 million in BNB tokens.

Binance’s quarterly spending is deflationary mechanism which allows the stock exchange to repurchase and permanently destroy a certain amount of BNB held in its treasury and increase its token deficit. By reducing its availability, Binance May Avoid BNB Price Drop supporting its long-term development.

Related reading: Binance has ditched all services related to tokens, but has no real explanation.

The platform has grown in popularity in recent months. In April of this year, the amount burned by the exchange was USD 595.3 million USA Americans. This record was broken in the previous quarter. Binance Burns BNB This Week almost 400 million dollars Americans.

Number of tokens BNB “burned out” by Binance is based on the exchange’s trading volume for the previous quarter. Hence, this is a good indicator of the health of the exchange. Final goal – destroy 50% of all Binance coins in circulation.

The exchange also reported 5,163 BNB additional ones that were burned through his program Pioneer burndesigned to help users who have lost their crypto assets due to honest mistakes. It should be noted that the burning silver fell from over 30% compared to the previous quarter, indicating a decline in Binance’s earnings.

Changpeng Zhao, CEO of the exchange, also revealed that according to the BNB White Paper Schedule, 16 million BNB additional ones were released and sent to the collective.

The BNB price has not gone up much.

FROM cryptocurrency price fell in May last year, the price of BNB practically did not rise. It turns out that it has been trapped in a narrowing range in recent weeks. From the beginning of July the price ranges from $ 250 to $ 340

BNB hit a record high last May, more than 686 dollars… Since then, the price has dropped by half, and this has not been helped by the difficulties the exchange platform is currently facing.

On the other hand, BUSD is currently ranked 11th among the largest cryptocurrencies by market capitalization and is also announcing a bull market.

In addition, Binance has indeed come under criticism from regulators and has had to suspend some of its services in Europe. But right now BNB is still the fourth largest capitalized cryptocurrency., with market capitalization $ 46.3 billion Americans.

Currently, the cost of burned coins is equivalent to 20% of Binance’s earnings for the corresponding quarter. However, while the exchange hasn’t publicly disclosed its earnings, recent reports show Binance’s current quarterly earnings to be around $ 2 billion. In addition, the exchange is currently resorting to pressure from regulators, for example, to ban Italy from conducting operations in its country, the British bank Barclays, Polish regulators and many others.

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