Binance recently made an announcement that said that they have burnt around 1.6 billion BNB coins.
The recent coin burn from Binance correlates with the fifth one, which happened between the period of 1st October and 31st December in 2018.
— Binance (@binance) January 16, 2019
The exchange went on to estimate that the number of coins destroyed during this event was worth $9.4 Million. Binance burnt a reported total of 1,623,818 BNB tokens. This detailed burn was for the period between October 1 and December 31, 2018.
For comparative purposes, the number is similar to the 1,643,986 BNB amount that they previously burned in their fifth round. The company’s CEO also acknowledged this in a Tweet.
Burn complete. I remember when I did the first burn of $1,500,000 USD equivalent in BNB, I was nervous as hell. Now, well, I am still nervous, lol. Fastest way to spend money. https://t.co/R6PL2cSURM
— CZ Binance (@cz_binance) January 16, 2019
In the blog post the CEO writes:
“I am not much worried about this market-driven movement. Markets always overreact. Around this time last year, the market overreacted too much on the positive side. I am hoping that this year, the market overreacted too much on the negative side, but you never know. I do know that, in the long run, the BUIDLers win. People who consistently work hard to create value, day in and day out, during both bull markets and bear markets, will eventually win. That’s our focus, it’s long term.”
Coin Burning In Cryptocurrencies
Coin burn in cryptocurrencies means sending some of the coins of native cryptocurrency or some other currency to a public address from which those particular coins can never be spent because the private keys of such an address are unobtainable.
This public address should be available on the blockchain for anyone to review such a transaction.
Coin burn is typically done for purposes such as:
- For making new tokens or coins (proof of burn).
- For rewarding the token or coin holders
- For destroying unsold tokens or coins after an ICO or token sale