Binance Exchange Destroys $547M Worth Of BNB Tokens
During its 21st quarterly coin-burning event, the largest crypto exchange platform in the world (Binance) eliminated BNB tokens worth over $500 million from its supply circulation. This is a strategy adopted by Binance to remove excess BNB tokens from circulation.
Binance announced that it had eliminated over 2 million BNB tokens, worth over 500 million USD, on the 13th of October, 2022. Its pioneer burn program also destroyed an additional 4,833 .25 BNB tokens. The burning arrangement is aimed at helping honest Binance users who lost their digital currencies.
It’s a generous arrangement where Binance would take responsibility for users’ loss by deducting their lost digital assets from their total quarterly burn. The lost tokens are then returned to users. Previous Binance burning events were usually scheduled to burn 20% of its quarterly profit.
The most recent burn event prevented Binance from accumulating a profit of over 2.5 billion during the third quarter of 2022. The token burn event in the 3rd quarter of this year pioneered the destruction of the biggest amount of BNB tokens ever burned in a Binance Burn event. This is especially true when we compare the value of 2,065,152 BNB tokens to a corresponding fiat currency like the USD.
Binance Crypto Burn Event and the Crypto market
Although a record-breaking amount of BNB tokens were destroyed in this burn event, the destruction had little effect on BNB’s market price. The value of BNB tokens declines gradually at almost the same pace as the crypto market.
On the 3rd of October 2022, Binance burned LUNC trading fees on LUNC/BUSD transactions and LUNC/USDT transactions. Thus, it upheld its decision to assist the Terra Luna Classic investors. The amount of LUNC tokens burned is worth $1.5 million.
While cryptocurrency exchanges with massive trading volumes like Binance are burning tokens, other top crypto players are destroying artworks worth millions of dollars. An example is the decision of British artist, Damien Hirst, to burn some of his most precious artwork from his “The Currency” NFT collection in a live social media stream.
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