Per a recent tweet by Whale Alert, a live tracker of large crypto transactions for top 10 cryptos, 2.29M BNB ($41.86M) has been transferred from Binance to an unknown wallet.
Binance’s Quarterly Token Burn
With such a large amount of BNB transferred to an unknown wallet is a hint big enough to say that these amount of tokens are going to be burnt. Firstly, 400,000 BNB was sent to the unknown wallet.
Secondly, within a span of 15 mins, 790,000 BNB was transferred.
Lastly, another 748,900 BNB was transferred
Crypto Twitter Speculates The Amount of Token Burn
Interestingly, a twitter user with the handle, CryptosBatman tweeted an hour back that Binance token burn is to take place this week and gave an insight into the historical burn stats. His tweet further got retweeted by Binance’s official handle which confirmed the occurrence of a token burn.
— Binance (@binance) October 14, 2019
The first, second, third and fourth quarter of 2018 saw 986K, 1.82M, 2.22M, and 2.53 M BNB being burnt respectively. Whereas, 1.62 M and 830K BNB were burnt in the first and second quarter of 2019.
Furthermore, profits worth $50,013, 594 and $78,009,472 were made in 2019’s first two quarters.
Interestingly, the tweet saw the crypto twitter speculating on the amount of BNB that will be burnt. The speculations oscillated between a figure of 925K to even 2.3 M.
CryptosBatMan further speculated that since Binance achieved its ATH in terms of $BNB in the last quarter, the burn amount was low. However, it is expected to be bigger this time.
BNB Token To Include Tokens From Binance Futures
Also, per a blog post on Sept. 12, Binance had announced that it will include all its products into quarterly BNB burns in accordance with community feedback. The new BNB burning practice will include tokens from Binance Futures, the exchange’s crypto futures platform which was rolled out on the 2nd of September.
BNB Slipped 5% When Q2 Token Burn Was Completed
Token burning permanently removes the decided amount of coins from circulation and it is a deflationary practice. The process does not destroy the tokens per se but renders them useless in the future. The last BNB token burn took place on the 11th of July. It was the 8th BNB token which removed 830K BNB tokens. Also, BNB slipped 5% on the day the burn was completed.
Will BNB price rise or witness a decline the day BNB token burn is completed? Let us know, what you think in the comments below!