Binance (BNB) 4th Quarter Token Burn Announced, $30 Million USD Worth
Binance to Start 4th Quarter BNB Token Burn
Binance’s CEO has made a significant announcement recently – the platform is moving forward with an BNB token burn. The platform announced its intentions on the morning of July 17, 2018 on Twitter. According to the announcement, the 4th quarter burn will reduce 2,528,767 tokens which equates to almost $30 Million in USD. This is the largest token burn by Binance to date.
This is not the first token burn by the platform and actually, it is well-known for the practice already. A token burn is marked by buying back and destroying native cryptocurrency (BNB) every fiscal year. The practice is a popular one as well, users tend to eagerly await the announcement.
- 1st Token Burn: 986,000 BNB
- 2nd Token Burn: 1,821,586 BNB
- 3rd Token Burn: 2,220,314 BNB
Yesterday Chanpang Zhao, the CEO of one of the largest cryptocurrency exchanges, announced they would be doing their 4th BNB token burn in the coming days after a finally tally was completed.
The previous token burn performed by the platform took place three months ago – in April. At that time, the exchange rid of two million BNB, which is about one percent of its total support. The exchange explained then,
“In accordance with our white paper, we have now completed the burn of 2,220,314 BNB (roughly $30MM USD equivalent) for our 3rd quarter.””
The exchange’s whitepaper requires a burn every quarter and at the end of the burn, the exchange must use 20 percent of its total profits to purchase back BNB at market value.
At this point, one of the crucial questions is whether the token buyback after the burn will impact the platform’s profits, which have been increasing over the course of the last few months. This token burn is poised to be much more significant than the last ones, so it will be interesting to see what the impact of the burn will be on future profits. Hopefully, the platform will be able to continue its positive performance for this year, which has tripled in value compared to Bitcoin.