BNB Price Down In Wake Of A $30Million Coin Burn
Reports out this afternoon are discussing a coin burn that was carried out by Binance yesterday, which has seen reduction of numerous coins to an estimated value of around $30million. According to Ethereum World News, the burn saw a circulation of 2,220,314 BNB reduced to just 194,972,068 BNB, reducing the full BNB circulating supply down to 114,041,290 BNB.
This coin burn was part of Binance’s quarterly plans in which they buy back BNB from exchanges using 20% of the team’s quarterly profits. This encourages the currency to continue to flow around the markets, in turn contributing to an increased coin value. Binance aim to burn 100million coins in total, according to Ethereum World News, they still have another 94,972,068 BNB before they have achieved this.
Leading up to the coin burn, the value of BNB jumped significantly. Although, you could argue that this was down to the overarching cryptocurrency surge that happened over the weekend which saw the prices of many currencies sky rocket, most notable Bitcoin, which gained almost $1,000 in just a matter of minutes.
How is BNB doing now?
At the time of writing, BNB is valued at $12.32, down 6.48%. This decline is now universal within the markets as seems to be as a result of correction taking place in the wake of the surge which we experienced last week.
Interestingly, as the surge progressed, BNB did not see the substantial gains that many other currencies did see, with it’s progression tailing off pretty suddenly, continuing in a moderate decline ever since.
The coin burn did only take place yesterday, therefore it will take a few days before any real success can be measured. Which should also note that during the last BNB coin burn back in January, the price of BNB did jump to $22.95, yet soon declined back to $11.14 just a couple of days later.
Really, does burning a chunk of the coins have a long-lasting affect on the value of the currency after all?
It doesn’t seem so. With the value of BNB on what looks to be a steady decline, unless we see a change over the next few days, this coin burn actually looks to only have damaged the value of the currency.
If you’re interested, and what to read more about Binance, BNB and their buy back procedures, you can view their whitepaper, here- https://www.binance.com/resources/ico/Binance_WhitePapern.pdf