19 Apr 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 (@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.
— 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.
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