Posted 2 years ago | by Ben Armstrong
Binance Removes More Than 10% of Total BNB Supply in 11th Token Burn
Binance officially announced that the exchange has burned 3,373,998 BNB in its 11th quarterly burn. This has been the biggest BNB burn following the 2.5 million BNB coins in its 4th burn.
Burning BNB tokens is a way that Binance pays holders instead of handing out dividends.
Burning tokens, in essence, should drive their price up – eventually.
Moreover, it also means that other investors might be interested in BNB since their supply gets smaller over time, which suggests that it is a good long-term investment.
While the price action may vary over the short run, if Binance keeps reducing the supply of BNB, it should drive prices higher, as long as the token remains in-demand.
Binance has loads of trading tools, and can be used by people internationally, and in the USA. If you would like to start trading cryptos, or buy some BNB, just click right here to sign up for a Binance account.
Binance Wants BNB to be Valuable
Previously, Binance stated that BNB burning events will happen every quarter until it destroys 50% of the total BNB. Each burning event is the number of trades performed on Binance within the last 3-month period. Binance has started burning BNB tokens in October 2017.
The more trading volume on the Exchange, the more BNB tokens will be burned. While the coronavirus pandemic is spreading and has destroyed many industries recently, Binance has seen higher trading volumes and user visits.
The exchange has reported seeing 5x more traffic.
According to Binance:
“While economic activity has slowed in many non-essential sectors and bitcoin price wasn’t able to escape the drop in tandem with stock prices, we have seen a sharp rise in crypto activity.”
Bitcoin Weakness Seems to be Great for Exchanges
Binance also stated that following Bitcoin price plummets, its trading volume also suffers. However, Bitcoin has seen a lot more trading volume this time after the crash and has managed to almost recover fully in less than 1 month.
Binance not only burned BNB tokens but also announced that it will buy the popular data site CoinMarketCap. It also recently announced that it would be launching Binance Smart Chain, which plans to create a smart blockchain that allows devs to use the Binance ecosystem and build decentralized applications compatible with Ethereum and based on EVM.
There are loads of exchanges out there, but Binance has some great features that are attractive to people who are just starting off in cryptos, and also more advanced traders and investors. If you want to learn more about Binance, or sign up for an account, just click right here!