Binance Coin: Burned Cryptocurrencies For Over $ 369M

Binance Coin is a token of the largest cryptocurrency exchange in the world - Binance. Its owners can count, among others for lower transaction fees when trading cryptocurrencies on the stock exchange and air drops, i.e. free allocation of new, emerging tokens. But many also say that it is worth investing in cryptocurrency, because it is clearly there deflationary nature - some tokens are regularly destroyed by the exchange itself. Right now 1 BNB units were burnedwhich have been irretrievably withdrawn from the market.

Of course, "burning" is a conventional term, because cryptocurrencies - as a purely digital entity - do not exist physically after all. However, it is about showing as vividly as possible that they succumb to total and irreversible removal. It takes place every quarter. The sixteenth consecutive burnout of BNB units has just taken place. As part of it, 1 Binance Coin tokens were irretrievably removed from the system. At the time of this event, these were cryptocurrencies, Fr. a total value in excess of USD 369,5 billion. 

How Binance Burns BNB

The burning of BNB has already been recorded at the stage of creating this cryptocurrency. 20% of Binance's quarterly earnings are currently spent on combustion. This is to reduce the number of tokens on the market, which will translate into an increase in their price. The cryptocurrency exchange itself buys them from the market and simply redeems them. And fewer units in circulation mean - at least in theory - their much greater value in the long run. 

That's why Binance regularly allocates part of its profit to buying and burning units every quarter. This has been happening continuously since 2017, when 986 were burned the first time. BNB. The record was set in the first quarter of 2021, when as many as 3 BNB was destroyed. Blockchain technology allows you to accurately track these transactions, so anyone who wants can thoroughly familiarize themselves with specific purchases - get to know their date, price, volume, etc. 

Buying and burning allow the cryptocurrency to increase

Burning does not always increase the cryptocurrency rate, and almost never does, because Binance does not buy them "on a hurray" on the last day of the quarter, but regularly buys them at intervals. On the one hand, this results in a lack of spectacular increases, which would be reported not only by social media, but on the other hand, it allows the rate to be maintained at high levels or to stop declines at a worse time throughout the quarter. In the long run, this undoubtedly has a positive impact on the valuation of the cryptocurrency, which is clearly visible in the BNB price.

On May 10, 2021, we had a BNB stock peak. At that time, each token was paid $ 690,57. On July 20, 2021, the price is just $ 261,68. The 62,1% drop from the top can be considered catastrophic, but you can also put it into perspective. In early 2021, BNB was available for $ 37 each. So even taking into account the recent declines, the rate is now 594,6% higher than it was less than seven months ago.

And all indications are that this is not the end. Burning BNB will continue at least until Binance will buy 100 million BNB tokens. This will mean that exactly 50% of all coins that appeared in the original supply have been withdrawn from the market.

We also have the BNB cryptocurrency in our retirement investment portfolio based on cryptocurrencies from the very beginning.

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