Sticking to its plan to destroy 100 mn Binance Coins (BNB), world’s largest crypto exchange, Binance, completed its 6th edition of ‘BNB Coin Burn’ which saw a burn of 1,623,818 BNB amounting close to USD 9.4 million.
Binance CEO- “In the long run, the BUIDLers win.”
Taking to company’s official blog, Changpeng Zhao, CEO of Binance said that the company has completed the 6th edition of its BNB Coin burn exercise that has resulted in the reduction of about 1,623,818 BNB from total supply.
This BNB coin burn is a quarterly exercise that Binance undertakes in order to reduce the total supply of the coin, bringing price appreciation to rest of the coins. The exchange had spelled out the same in its whitepaper which was released during the ICO. To quote from the whitepaper,
“Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining”
One thing worth noting here is that the final quarter of 2018 brought significant changes in the cryptocurrency landscape. And even with similar coin burn figures, the sixth burn of BNB is about $9.4 million, compared with $17 million during the previous period.
The Coin burn exercise did have a slight positive impact on the price of BNB coins. While reporting, the Binance coin was at USD 6.06 up about 1.09%.
While this exercise is a market-driven movement, CZ clearly mentioned in the blog that he is not much worried about this movement.
“Markets always overreact, in the long run, the BUIDLers win” was the key mantra CZ gave out.
Speaking about BUIDL, CZ mentioned the following in a post;
“Speaking of BUIDL, another thing that I’m excited about is Binance Chain and Binance DEX, which will launch soon. From a tech standpoint, it is a major development for the Binance ecosystem. From an earnings standpoint, Binance DEX will not directly increase profitability for Binance, but it will certainly increase the utility of BNB in a big way. That should be good for BNB holders. Binance is also a larger holder of BNB, so we benefit the same way as all BNB holders. The more people using Binance Chain, the more value is created, or the more successful we all become.”
CZ stated that his focus is not the prices and markets but the real development that is building the eco-system. May it’s because of this focus, Binance today is a leading crypto exchange of the world.
Will Binance continue its growth story irrespective of the market movement? Do let us know your views on the same.