Binance just completed its 17th token burn. Over 1 million BNB were removed from circulation, comparable to previous burns.
Leading cryptocurrency exchange Binance has announced it has burned 1.335 million BNB tokens, meaning that $639.4 million worth of the cryptocurrency has been permanently removed from circulation. Token burning is a strategy followed by cryptocurrency projects to influence the price of a token or coin itself in the market. The term burn is basically done to create a supply crunch, thereby creating an artificial upward pull for the token price. Each cryptocurrency network defines a protocol for accomplishing the burn but it amounts to associating the coins in circulation with unobtainable private keys so nobody can claim them to be theirs.
Binance’s CEO, Changpeng Zhao, who is mainly known as CZ, informed in a quarterly highlight report that binance grew its category position. He informed that: “Thanks to your strong support, our category position in the market has increased over the last three months (as well as for the year). Based on research from The Block, we grew our category position from 69.6% in June to 69.7% in July and 70.3% in August.” CZ further added: “According to our own research, which includes a much more comprehensive dataset–hence lowering our category position estimate–our “true” position is lower: somewhere around 50%. However, the relative proportions of the big exchanges are the same.”
The company has burned 16.60% of the BNB supply to date, according to the research. Binance burns BNB each quarter based on its trading volumes of the previous quarter.
