Cryptocurrency exchange Binance has conducted a major burn of its native token the Binance Coin (BNB). The burn, which destroyed approximately $393 million worth of BNB cumulatively is the 16th since Binance pledged to be conducting these periodic burns.
Binance announced its latest burn on July 18. According to the crypto exchange, it had destroyed 1,296,728 BNB tokens. Adding to this number, Binance also burned 5,163 extra tokens in its Pioneer Burn Program. The initiative is an incentive for traders who made losses through genuine misjudged transactions to smart contracts.
Binance Accelerating to Targeted Burn of Half of the Tokens in Circulations
During the launch of BNB, cryptocurrency exchange Binance initially committed to burning half of the supply of the token in circulation. The formal first white paper reported that Binance burned 20 percent of its quarterly profits.
After sticking to the 20 percent of the quarterly profits burn plan for a while, Binance decided to change its tune last summer. The updated white paper stipulates that cryptocurrency exchange Binance will determine the number of BNB tokens to burn in a quarter depending on the trading volume is recorded in the previous quarter. The plan will run until Binance ensures that it has destroyed the initial targeted 50 percent of all BNB in circulation.
Binance seems to have predicted that burning 20 percent BNB tokens would take a long while for it to achieve the 50 percent burn. In a blog post in January, the crypto exchange stated that the plan would take approximately 27 years. The need to accelerate the journey explains why the crypto exchange has been going ham on the BNB burn.
In the last quarter, Binance’s BNB burn was even bigger at $595 million worth of tokens. Although Binance does not publicly disclose its profits, FTX CEO Sam Bankman-Fried speculated that the profits in the last quarter may have been around $750 million.
Market Remains Unbothered despite Major Binance’s BNB Burn
Binance’s BNB burn seems not to have affected the market in any way. Market analysis indicates that the move was to result in a bullish trend for Binance. However, Binance’s native token BNB continued to trade at $302 at the time of the announcement and even dropped to $298 at the time of writing.
