Binance ready for the BNB coin burn. A record-breaking month
Crypto

Binance ready for the BNB coin burn. A record-breaking month

By Stefano Cavalli - 9 Jul 2019

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There are now a few remaining days to the notorious BNB coin burn, ie the destruction of tokens by the Binance exchange.

Every quarter, in fact, the well-known exchange uses part of its revenue to buy BNB tokens to burn. This procedure is foreseen and widely described by Binance’s whitepaper and will continue until the total supply of money is halved, thus reducing the number of tokens to only 100 million units.

BNB’s last coin burn occurred on April 15th. At that time, the exchange had bought and destroyed 829,888 Binance Coins (BNB), which at the time amounted to over $15 million.

In a few days, therefore, the eighth BNB coin burn should be announced, as already anticipated by the CEO CZ on his Twitter profile.

It is currently difficult to estimate how many coins will be destroyed, even though Binance saw record turnover and volumes in the last quarter, due to the strong growth in the price of bitcoin between May and June.

Record-breaking month for Binance

Tommy Mustache, a well-known supporter of Binance Coin, has posted on Twitter:

“The trading volume in Q2 2019 should be a lot more than Q1 due to the run up in bitcoin price and a handful of other major alt coins.  Where does the BNB gas money go from all the tokens on the BEP2 chain that are being transacted such as the DEX gas fees? The node operators?”

The past month was record-breaking for Binance, with volumes well above those of 2017, as reported by CZ itself. Binance has so far burned 11.7 million BNB tokens over the past seven quarters.

This value represents less than 6% of BNB’s total supply of 200 million tokens. In the first quarter of 2019, the exchange reported around $78 million in profits. According to the analysis, the BNB token had a superb performance, touching the new ATH at $39.5 last June 22nd.

Along with the classic coin burn, Binance will also distribute 16 million BNB tokens unfrozen by the team, for a total value close to $539 million.

Despite these recent records, the following months are expected to have a negative impact on the token due to the ban on operations in the US, which will become effective on September 12th.

Despite the fact that the exchange has announced Binance US, it is feared that many coins, including the BNB token, will not reach American soil

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