Binance Coin [BNB] is set for its upcoming coin burn this month 17698
Bitcoin News
Madhurima Roy
Jul 5, 2018 at 1:00 PM

Binance has scheduled its quarterly coin burn on July 18th after which the price will be determined and users will be able to figure out their next moves. This coin burn is a segment specified in the BNB whitepaper.

Burning coin will help to route the token to an address, which is void and has with no private key. Tokens will be efficiently eliminated from being circulated, which will in turn minimise the supply of the asset by lowering the supply, demand, and price surge.

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The BNB token that Binance released and are given to users is ERC20. These BNB tokens help the token holders with a 50% reduction in trading fees on the platform.

The whitepaper stated: “Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining.”

ALSO READ: Binance suspends trading, withdrawals and other account functions

As reported by AMB Crypto, the BNB coin burn started last year on 18th October, when 986,000 BNB tokens were burnt. But it didn’t make much difference in the token price. The coin was burned at around $1.31 on the day.

After that, the second burn was done this year on 18th of January 2018. The second coin burn had 1.8 million BNB tokens burned. The price started seeing a downward graph till it’s the second burn day, when the price again started going up. From $10.06, the price soared up to $15.54 in a day, which is a massive increase of 54% in price.

This was followed by the latest burn on 18th April, with almost no alteration in its price.

Social media response (Reddit)

  • soul5tice:Binance is a great coin, even in this drought it has performed really well. It is also one of the only cryptos with real world business use generating profits
  • WhatThaFUD:They are buying back coins with 20% of their profits, so with the recent hack they had to pay for out of pocket, does this mean they are only buying like 20 coins back this time around? Surely profit is not as good for them now, vs the last quarter?

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