Exchange Binance burned its tokens worth $ 600 million
|Slavomír Kaňuk|source|3572x
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Exchange Binance burned its tokens worth $ 600 million

Currently, the most famous cryptocurrency exchange, Binance, announced through a blog post that they have burned 1.1 million Binance coins (BNB) in the last quarter, worth almost $ 600 million. This is already the 15th regular burn, and the total volume of BNB tokens on the market fell to 169 million.


 

Binance in the past has burned tokens usually worth 20% of its profits. However, it is assumed that this percentage was significantly higher this time, but the exact value is not known. Sam Bankman-Fried, CEO of FTX, one of the best cryptocurrency futures exchange, estimates that Binance may have generated $ 1 billion in revenue in the first quarter of 2021. To compare the total revenue (since its inception) of Coinbase, which was listed on NASDAQ last week, it is estimated at $ 780 million to $ 1.3 billion.


According to CoinGecko, the BNB is one of the most profitable tokens in the first quarter and its price rose by more than 710%. Recall also that a year ago you could buy a BNB for $ 15 and today its price is around $ 500, while also recently set its new ATH - $ 640.


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This positive trend is mainly due to the performance of the exchange itself and also their own blockchain Binance Smart Chain, where the daily number of transactions increased from 380,000 in January, to the current 4.7 million. BNB is the primary token of this network and is also used on other platforms (such as PancakeSwap) and in pools, which of course increases the demand for this coin. The cryptocurrency Dollero (DLLR) will play a similar role as the BNB throughout the ecosystem and on the Dollero Exchange.


Read also: WILL WE SEE BITCOIN AT $ 100,000 THIS YEAR?


Do you know what token burning is and why Binance actually does it? At first glance, they may seem to be losing profits by doing this. However, the opposite is true. Token burning is a process in which they are removing tokens from circulation and their total volume on the market is reduced. The limited offer subsequently leads to a positive reaction in terms of price, and in the end, both Binance and the owners of BNB tokens gain.

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