Binance coin (BNB) is the worst-performing major cryptoasset today as Binance said it has completed its 15th quarterly BNB token burn, destroying BNB 1,099,888 (USD 595, 314).
At 09:19 UTC, BNB trades at USD 523 and is down by 4% in an hour and a day, trimming its weekly gains to 25%. The price doubled in a month and rallied by 3,492% in a year.
“This burn effectively took USD 595,314,380 worth of BNB out of circulation forever. With this recent burn, the total supply of BNB has officially decreased from 170,532,825 BNB to 169,432,937 BNB. This 15th quarterly BNB burn is the highest-ever in US dollar terms,” CEO Changpeng Zhao said.
This past January, the company said it plans to accelerate the burn that was planned to last for 27 years. “The current accelerated burn would put the trajectory to be around 5-8 years to finish the 100 million BNB,” the CEO said back then, adding that “a number of factors could change the accelerated part in the future, including BNB price fluctuations, overall market conditions, and more.”
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What is token burn?
A token burn is a concept unique to cryptocurrencies. By burning a certain number of tokens in circulation, token burn initiators expect to increase the value of remaining coins. It adheres to the simple supply and demand principle – if the number of coins goes down and the need for them remains the same or grows, it should (but it’s not 100% guaranteed) experience gains in price. The most common way to burn coins is to send them to a so-called burner address – a public on-chain wallet whose private keys are verifiably invalid and unobtainable.
Historically burn announcement has been sell the news though. At least the day of
— Larry Cermak (@lawmaster) April 16, 2021
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