Binance destroys nearly $640 million worth of BNB tokens in its largest-ever burn
Crypto exchange operator Binance announced Monday that it has burned nearly 1.4 million BNB tokens (worth about $640 million at current prices) in its largest-ever burn.
Burning refers to the process of permanently removing a crypto token from circulation, thereby reducing its supply and potentially increasing its price. When Binance launched BNB in 2017, it committed to burning a total of 100 million BNB, i.e., 50% of its total supply. BNB’s 40% supply was originally allocated to the Binance team.
The latest burn — Binance’s 17th quarterly BNB burn — is the largest ever in dollar terms, though not by the number of tokens. This is because the price of BNB jumped 58% during the third quarter, from around $305 to around $480.
The company has burned 16.60% of the BNB supply to date, according to The Block Research. Binance burns BNB each quarter based on its trading volumes of the previous quarter.
© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Author: Yogita Khatri
