Crypto Exchange OKEx’s CEO Questions Binance’s Q3 BNB Buyback
On Oct. 17, leading cryptocurrency exchange Binance announced the 9th quarterly BNB burn of 2,061,888 BNB, equivalent of $36.7 million.
The removal of over 2 million BNB has only 187,536,713 left in the total supply, as per Coinmarketcap. Binance will continue to burn its supply until 100 million BNB are left.
This number, the exchange said represents “significant growth,” which was driven by the new services like increased number of fiat on-ramps, margin trading, low fees, futures trading, and other services.
In comparison to last quarter when just over 800,000 BNB was burned, this time the burned BNB saw an increment of 154%. This increase came despite the quarter registering a slump in BNB price and the low trading volume recorded on the platform.
This drove competing crypto exchange OKEx CEO Jay Hao to question, “How come Binance bnb Q3 buy back could be more?” when Binance Q3 has a lower trading volume than Q2 and trading discounts offered by the exchange.
In Q2, the trading volume on Binance’s spot exchange was $159.62 million while in Q3 the combined volume of its spot and futures platform totaled $113.94 million.
But the company recorded a revenue of $186 million in Q3 vs $119 million in Q2.
The company uses 20% of its profits to buy back BNB. Although Binance changed its whitepaper to remove “plans to use 20% of its profits each quarter buy back and burn BNB,” section, the spokesperson of the company at that time confirmed that they are still using 20% of the profit to buyback BNB.
Hao further pointed out that if BNB supply is capped 200 million and Binance has burned the claimed 14,525135 BNB, then there should be 185,475,865 BNB remaining in the market. But “185,474,825 BNB remaining” is what’s written in their announcement.
“Does this look weird to me only??,” questioned Hao.
Moreover, the burned address shows the balance in the wallet at 48,461,324 BNB. This puts the total BNB ever created at 233,936,149, “which is more than the so-claimed 200 million BNB shown on the white paper.”
At press time, Binance or CEO Changpeng Zhao either didn’t respond or share any explanation for the questions raised by Hao.