TL;DR Breakdown
- Binance burn $400 million worth of BNB
- The coin burn represents the largest BNB burn in Binance history
- Market decline, regulatory crackdown, FUD as reasons behind decline in token burn
A BNB surge may be upon us as Binance burn, almost $400 million worth of the coin. Theoretically, it is believed that after halving or coin burn, prices of such coins are to surge almost immediately or after some time.
The ritual of BNB burn by Binance is always done every four months. However, as anticipated, the price of the coin is yet to begin reacting to the process. This is the 16th time Binance would burn BNB, and the second time in 2021, BNB burn would happen.
The exchange destroyed 1,296,728 BNB tokens and an additional 5,163 BNB, which was destroyed through its Pioneer Burn Program.
Binance pioneer Burn Program aims to help users who have lost tokens through honestly mistaken transactions to smart contracts. The firm covers the losses through returning tokens to users under specific circumstances.
They are deducted afterward from the quarterly burn totals by the exchange.
History behind Binance BNB burn
The number one exchange firm from the onset has pledged to always burn 20 percent of the exchange’s profits every quarter.
The most recent Binance burn suggests that the exchange made $2 billion during the second quarter of 2021. It also marks as the second-largest in Binance Coin’s history by fiat value. It comes second behind Binance burn in March earlier this year when the firm destroyed a whopping $600 billion worth of BNB, a 33.33% decrease.
As said earlier, despite the amount of BNB destroyed, BNB price is yet to experience any significant surge as the price of the coin continues to di and trade sideways.
The decline in the token burned is attributable to numerous factors such as market decline that has made investors more cautious, the regulatory crackdown on the exchange. Several regulators across different countries have continued to crack down on Binance. Lastly, there hangs FUD (Fear, Uncertainty, and Doubt) over the future of the exchange.
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