BNB Price Drop Baffles Binance CEO, Cites Optimal Q3 with an Estimated $185 Million Profit
The Binance Coin, or BNB, has dropped 50% from its all-time high in June. This makes little sense for Chanpeng Zhao, Chief Executive officer and founder of the major cryptocurrency exchange.
He cited new services, things like margin trading, increased fiat on-ramps, and peer-to-peer to trading. He stated that future trading, coupled with these factors, had made the last quarter a “very productive” one. Many significant projects have reportedly come into fruition within the quarter, as well.
Because of all these factors, Zhao isn’t sure how to explain the price slump of BNB these past few months. He stated that, while there are many possible reasons for it, none of them makes a lot of sense for him. He acknowledged that Bitcoin’s price drop could have been the reason, as well as some FUD on various things. However, he couldn’t nail done a specific purpose, stating that his results outshone those issues, from his biased point of view, at least. He rather amusingly said that, while markets often confuse people, it even confuses him sometimes.
Binance Burning Money
As an apparent sign of how successful the business is, Binance burned an impressive 2 061 888 BNB. In total, the amount of monetary value they burned amounts to roughly $37 million. This leaves 185 474 825 BNP still in circulation, but Binance has made it clear they want to continue burning until BNB is only 100 million. That is a clean half of all the BNB ever issued. Zhao stated this was a good sign, showing significant growth within Binance.
Last quarter, just over 800 000 BNB was burned. That’s a stark 154% rise in BNB burned compared to the previous quarter. It also shows a severe increase in profit, due to how the firm burns its currency in terms of how much profit they’ve earned.
They apparently only burn 20% of their profits, so it’s very possible to calculate an estimate of their profits for this quarter. From this data, one could work out that Binance earned, more or less, $185 million in Q3 2019. An impressive number by any reasonable standard.
According to CoinMarketCap, BNB is considered the seventh most popular coin in terms of market cap, standing in front of EOS and behind Litecoin. Binance has undoubtedly made a success of its platform, and it seems to be only planning to move forward and grow even more.
As the world moves more and more into crypto, it will be giants like Binance that will pave the way. It’ll be interesting to see if Binance adds Facebook’s Libra to their exchange the moment it’s released or not. Maybe they ‘ll wait and see how the matter pans out.