Binance announced that as per their whitepaper declaration, they burnt ~ $30 million BNB tokens. Surprisingly despite the coin burn, the BNB token was trading at a -2% since yesterday and is the only token to be in red among the top 20 tokens.
Binance Coin (BNB) at press time was trading at $13 to a token with a market cap of $1.4 billion and comes in at number 19th in the top 20 tokens according to coinmarketcap and Price.Ambcrypto.
Binance officially announced their token burn on their Twitter account and said,
“#Binance 3rd Quarterly $BNB Token Burn… In accordance with our whitepaper, we have now completed the burn of 2,220,314 BNB (roughly $30MM USD equivalent) for theour 3rd quarter.”
Token burning generally indicates buying back of the tokens and destroying them thereby creating an increased demand for the coin. Although there was a significant increase in the prices for BNB in the days leading up to the burn, on the particular day itself, despite the burn, BNB was trading negative.
According to Binance’s whitepaper, they will burn up to 50% of the total supply of BNB (~200 million) with their profits. Users who use BNB token for trading generally experience a trading fee discount, at 50% discount for the first year.
There were perplexed tweets regarding the negative prices today despite the coin burn with some like Yohann Bollinger from Capetown saying,
“Why isn’t this price going up then? Is someone holding it down? Some whale eh..”
Analysts feel that there will be a reflection on the prices very soon. The BNB pair could be used with around 55 tokens in the Binance platform. BNB hit its all-time high on Jan 12th when it was trading at $24 to a token according to the data from coinmarketcap.com
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