All You Need to Know About Binance Coin Burn: Past and Upcoming - Only4Free - Cryptocurrency Connection

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All You Need to Know About Binance Coin Burn: Past and Upcoming

All You Need to Know About Binance Coin Burn: Past and Upcoming




Since the company’s inception on July 14, 2017, Binance has been establishing itself as one of the most influential and most prominent cryptocurrency exchange in the world. Binance has also been gaining a lot of new users since Bittrex suspended new user accounts and is currently the exchange of choice for many cryptocurrency traders.


Why Burn the Tokens?



To increase the value of its native token, Binance Coin (BNB), Binance is scheduling quarterly Coin Burns and using 20 percent of the profit made to buy back and decrease the supply of the exchange tokens.

The exchange is also earning widespread traction as it offers an easy-to-use and novice-friendly system that doesn’t require a lot of verifications to be used. If a trader doesn’t exceed more than a two BTC withdrawal per day, there is no need to get verified.



And in case a trader needs to use larger amounts, they can fully verify their account in a straightforward process.

The fact that the exchange also has its own token is another major attractor. Since holders of the exchange token are entitled to a 50 percent reduction in fees, its possession provides an enormous incentive for traders to hold it.

The Binance Coin is an ERC20 token built on the Ethereum network, but according to the exchange, soon the company will launch its own built from scratch blockchain, called the Binance Chain.



How Does a Coin Burn Work?



According to its white paper, Binance will burn a set amount of its tokens every quarter, depending on the exchange profits. This technique is the company’s way of trying to make the tokens even more valuable over time.

Every quarter, the company will use 20 percent of its profits to buy back BNB and destroy them, until it has a total of 50 percent of all the BNB (100MM) back.

The company is going to announce all the buy-back transactions on the blockchain and will eventually destroy half of its coin supply (100MM BNB), leaving another half untouched.

The exchange’s first ever Coin Burn amount was announced on the October 15, 2017, exactly three months and one day after their launch. The burn was scheduled for October 18, 2018, and 986,000 BNB coins were burned.

Since the first token burn, the company has followed the schedule by the rule. The second burn event occurred in January 2018. The amount to be burned was announced on the January 15 and took place on January 18, 2018, getting rid of 1,821,586 BNB.

So far there has only been two Coin Burns, and the next one, should be announced already on April 15, and the burn should happen on April 18, 2018

Following a similar schedule, we can already foresee the future Binance Coin Burn dates for the next two years:

  • April 18, 2018
  • July 18, 2018
  • October 18, 2018

2019

  • January 18, 2019
  • April 18, 2019
  • July 18, 2019
  • October 18, 2019

2020

  • April 18, 2020

It seems that the previous Binance Coin Burns don’t have had a significant impact on the market. Right after the second BNB burn, for instance, the price went up for the first couple of days, before falling over 60 percent.



At current, BNB price goes around the $13 mark. While Binance has become even more popular and the profits are increasing by the day, it is safe to anticipate a more significant amount of BNB to be burned quarterly.


Source: https://btcmanager.com/all-you-need-to-know-about-binance-coin-burn-past-and-upcoming/

Tags: Binance, cryptocurrency exchange, cryptocurrency, Binance Coin, blockchain, cryptocurrencies, bitcon news, crypto news


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