Developers of the fourth-largest cryptocurrency by market capitalization have burned a significant portion of their holdings for the 19th time in the coin’s history.
Deflationary nature reaffirmed
The Binance Coin (BNB) has gone through another quarterly burn. This time, 1,830,382 BNB disappeared from its holdings, which at the time of the operation, represented a value of nearly $742 million.
The move was announced by Binance’s official profile:
It was also confirmed by the CEO of the exchange himself, Changpeng Zhao, who says:
“The value of $741,840,738 #NB will be withdrawn from the service.
BNB is deflationary in nature. If you don’t know what that means, you lack the basic financial knowledge to be lucky in this world. Harsh, but true. Time to learn.”
Later in his statement, the popular CEO of Binance justifies such behavior. He mentions that burning BNB is written into the premise of the exchange as well as the Binance Smart Chain ecosystem. He pointed out that the process is listed in the coin’s white paper, which obliges the team to follow procedures.
It is a fully predictable procedure and often affects the BNB price. The action of moving the coins to a cold wallet, from which it is impossible to send them back any further, will remain in effect until the value of the total BNB supply falls below 100,000,000 units. Given that the current supply is over 163,000,000 coins, developers still have a long way to go.
Meanwhile, the price of BNB
At the time of writing this article, the BNB price is oscillating around $421.00, a drop of nearly 40% from its ATH. On the coin-burning day, which fell on April 19, we can see an upward movement of nearly 1.77%. Currently, the price action is contained within an ascending pennant. At the same time, we observe a golden cross between the 50-day and 100-day moving averages. The MACD indicator looks bullish, suggesting short-term upside.
Binance Coin (BNB), is one of the most popular coins of the last two years. It is part of the Ethereum competitive ecosystem. Moreover, owning it brings a lot of benefits when trading on the exchange. If you want to learn more about it, you should take a look at the article titled “What is Binance Coin (BNB)”. We invite you to read it!