Binance Burn $477 Million in BNB Raising Community Skepticism
Binance has recently completed its quarterly token burn, where it removed 1.99 million BNB coins from circulation.
This action aims to decrease the token’s supply and has been a regular practice for the company since October 2017.
The CEO of Binance, Changpeng Zhao, announced on Twitter that there would be additional on-chain transactions to distribute the coins to more addresses. He reassured users that there was nothing to be worried about.
Through their auto-burn procedure, Binance eliminated 1.99 million BNB tokens, resulting in a reduced circulating supply of 153,857,171 BNB. The burn amount is determined based on the coin’s price and the number of blocks generated on the BNB chain.
In addition to the regular burn, the 24th quarterly burn included 747.51 BNB as part of Binance’s Pioneer Burn Program, which supports users who lost their tokens by sending them to the wrong addresses. Previously, Binance conducted its 23rd quarterly burn, removing 2.02 million BNB from circulation.
While many investors are pleased with the burn as it reduces the token’s supply, some have expressed skepticism. Some community members raised concerns about the methodology, questioning whether BNB tokens were being purchased from the open market before the burn, considering the activity to be pointless.
READ MORE: Trillions of Dollars to Flow Into Crypto, According to Anthony Scaramucci – Here is Why
A community member, unaware of the quarterly nature of the burn, speculated that the supply burn was an attempt to raise the token’s price equilibrium. Furthermore, there are fears of large liquidations if the BNB token’s value drops to approximately $220.
It’s worth noting that the token has been experiencing a period of sideways trading, fluctuating between $230 and $256 over the past month.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
