Binance Burns Another $740M Worth of BNB, CZ Says It Proves Deflationary Mechanism
The world’s largest cryptocurrency exchange – Binance – removed over 1.8 million BNB tokens from circulation, completing its 19th quarterly BNB burn. Changpeng Zhao – Chief Executive Officer of the trading venue – argued that the process proves the deflationary nature of the asset.
- BNB Chain (BNB) – the native token of the world’s largest crypto exchange – went through its 19th burn earlier on April 19.
- The company sent 1,830,382 BNB (over $741 million at the time of transaction) to a wallet that can only receive tokens but cannot send any.
#Binance Completes 19th Quarterly #BNB Burn!
1.8m #BNB has been burned
— Binance (@binance) April 19, 2022
- Apart from giving transparency and predictability to the community, the process is estimated to have a deflationary effect. For BNB, the goal of coin-burning events is to gradually reduce its total supply until it reaches under 100 million tokens.
- In a recent tweet, the Head of Binance – Changpeng Zhao (CZ) – doubled down on this concept.
$741,840,738 worth of #BNB will be taken out of circulation soon.
Real time info:
https://t.co/BikWciOHY7#BNB is deflationary. If you don’t know what that means, you lack basic financial knowledge to get lucky in this world. Harsh but true. Time to learn.
— CZ
Binance (@cz_binance) April 19, 2022
- In a subsequent post, Zhao justified Binance’s initiative, saying it is written in the whitepaper and as such, the team is dedicated to following the procedures every quarter.
- It is worth noting that the process often has a bullish effect on BNB’s USD valuation. Similar to many other cryptocurrencies, it is well in the green today, currently trading at around $420 (a 4.5% increase for the past 24 hours).
- The company’s previous burn took place in January. Back then, Binance cleared nearly $800 million worth of BNB from circulation.
