Crypto exchange Binance burns nearly $600 million worth of BNB

Crypto-currency exchange Binance burned its own BNB token worth more than $594 million today, the largest burn in the exchange’s history.

But it wasn’t about Binance trying to pump its own money (by reducing supply) or burning money. The combustion mechanism is an integral part of how BNB works, which has helped the coin become even the third largest cryptocurrency.

595 million… gone.

As the portfolio data shows, Binance has burned more than 1,099,888 BNB this morning, as CEO Changpeng Zhao said on Twitter: Imagine burning half a billion dollars. Wait, you can’t imagine. It’s real.

Imagine burning half a billion dollars. Wait, don’t imagine that. That’s right. #BNB

– CZ Binance (@cz_binance) 16 April 2021

This was the 15th fire in NBB history and is expected to take place between January and March 2021. This action permanently removed $595,314,380 of BNB from circulation and reduced the total stock of BNB from $170 million to $169 million.

BNB’s initial offering was capped at 200 million tokens in the Initial Coin Offering. At the time, 100 million tokens were issued in the ICO, of which 80 million went to the founding team and 20 million to angel investors.

To stabilise the monetary value of NBBs over time, a burning mechanism was introduced as new coins came onto the market and NBBs were used. Eventually, Binance wants to burn 100 million chips.

NBB use case

Originally designed for traders to pay a fee to fund and trade other coins with the Alt/BNB pair, BNB has grown to a market capitalization of $77 billion in just over three years of existence.

It started with the ERC20 token (i.e. on Ethereum), but has since moved to the financial circuit. However, the latter does not support smart contracts like Ethereum, which led to the launch of the Smart Funding Chain (BSC) in 2020 – an initiative that gave BNB even more clout in decentralized finance applications (DeFi), farms and DEX.

Since then, the BSC has remained successful. According to a report released today by Binance, BSC reached 4.9 million daily transactions as of April 8. That’s 300% more than the record number of daily Ethereum transactions.

The report, written by Zhao, continues: BSC played a key role in the increase of active dApp wallets (+639% in Q1 across all blockchain platforms), with an average of 105,000 daily active wallets compared to 458,000 daily active wallets for the industry as a whole.

The total number of unique addresses identified by BSC has reached 64 million in just eight months, and more than 450 projects have been built based on the Smart Finance Chain.

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Published: Finance, Altgoyne

Crypto exchange Binance burns nearly $600 million worth of BNB

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