CZ Says BNB Burns Not Priced In after 2.2 Million Binance Coin Taken Out of Circulation Forever
- Binance burns $38.8 million worth of B&B and raking in a profit of $194 million 4Q19
- CEO changpeng Zhao, CZ is “mystified” that BNB is down 54% from its ATH but isn’t worried much
Today, the world's leading cryptocurrency exchange Binance conducted its 10th BNB burn which has been the second biggest burn in USD terms, at $38.8 million, and the 3rd highest burn in terms of BNB, at 2.2 million BNB.
This 10th quarterly burn, Binance said represents the first full quarter that factored in the performance of its most recent new products, margin trading and an increasing roster of fiat-to-crypto options.
4Q19 was also the first full quarter of Binance Futures operations that “hit the ground running.” The daily trading volumes of its bitcoin futures surpasses its spot exchanges. Just this week, Binance launched three out of its nine perpetual contracts.
Although in the last quarter, Bitcoin price lost 10.30% of its value, Binance still made a profit of $194 million, up from $185 million made last year and any of 2019’s quarter, on the basis that Binance burns its native tokens worth 20% of its profits every quarter.
In the recent quarters BNB is in fact, “slowly but surely” decoupling from the core operations of the exchange, Binance CEO, Changpeng Zhao said.
Scarcity and Increasing Demand making a Bullish Case
The BNB burn event is common knowledge but according to CZ, it still isn’t priced in.
This means the available information about Binance to burn 100 million BNB isn’t already reflected in its price.
I guess as much as we like to shill, there are still many many people who do not understand burn. https://t.co/3jEQ3evzOz
— CZ Binance (@cz_binance) January 18, 2020
Given that burn means the supply is cut down, Binance is creating a scarcity of BNB while constantly finding means to make BNB more usable as CZ said about BNB’s utility, “We began 2019 with 30+ use cases, and we ended it with 200+.”
Binance is doing everything to increase the demand for BNB while the regular burns keep on tightening the supply, which is bullish for BNB price.
However, BNB price hasn’t been able to feel the effects. The event didn’t have any effect on the price as BNB is currently trading at 17.95, down 0.20% in the past 24 hours, as per Coincodex. The ninth largest cryptocurrency, however, is up over 30% YTD.
CZ is actually “mystified” about the fact that BNB is down 54% from its all-time high (ATH) at $39.45 but he isn't worried about it much because he sees it as a “long-term play.”
The CEO ensures that 2020 is the year of adoption and intends to be “a major player in bringing that widespread adoption worldwide.”