Binance Successfully Completes 24th Quarterly BNB Burn
• Binance completed its quarterly burn of 1.99 million BNB coins worth around $477 million on Wednesday successfully.
• The exchange has been conducting such quarterly burns of BNB to reduce the token’s supply since October 2017.
• Despite the successful burn, traders remain pessimistic about the coin’s future performance in light of growing regulatory scrutiny.
Background
Binance, a leading crypto exchange giant, completed its 24th quarterly burn of 1.99 million BNB coins worth around $477 million on Wednesday successfully. The exchange has been conducting such quarterly burns of BNB to reduce the token’s supply since October 2017 with an aim to increase the value of each coin for its holders over time.
Auto Burn Formula
The Auto Burn formula is used by Binance to achieve this goal as it burns the amount of BNB based on the coin’s price and the number of blocks generated on the BNB chain. In addition, 747.51BNB from circulation was also burned as part of their Pioneer Burn program which is meant to provable lost funds by eligible BNB Chain users. At the time of writing, 2 million BNB had already been burned in April under their 23rd quarterly burn.
Scepticism Over Latest Burn
Despite these developments, some crypto traders remain sceptical about latest quartery burn due to internal funds transfer within Binance and comparisons being made between CEO Changpeng Zhao’s tweet and indicted Sam Bankman Fried’s tweet at fall FTX. Coinglass data shows that open interest-weighted funding rate turned negative on Binance’s native coin this week indicating that traders are betting more on a price decline than gains for cryptocurrency going forward despite recent successful burns.
Conclusion
In conclusion, while successful completion of 24th quarterly burn did not lead to significant increase in price for now due to bearish sentiment in market, it remains important for long term functioning and growth prospects as it reduces total coins available in circulation and thereby increasing value per coin for existing holders over time .