Binance destroys $ 68 million dollars of BNB
Last Saturday (17), Binance destroyed more than $ 68 million in its cryptocurrency Binance Coin (BNB).
This was the biggest dollar burnout ever, and the fourth biggest in BNB, with 2,253,888 tokens destroyed. The amount is equivalent to 1.13% of the stock in circulation.
The practice of destroying, which means withdrawing from circulation, occurs every quarter, this being the 13th time. And it ends up increasing the demand for the currency, also resulting in an increase in its price. In August 2017 the price of the currency was close to 10 cents, today, it is around 30 dollars. An appreciation of 300 times.
In the previous quarter, the exchange burned 1.74% of the stock, or 3,477,388 tokens, worth $ 60.5 million at the time. In order to finance the burning, Binance uses its profits to buy Binance Coin in the open market and then destroys the acquired tokens.
The goal is to reduce the supply to 100 million tokens. Thus, there are still 44.4 million in BNB to be destroyed. In March this year, with general panic over the new coronavirus pandemic, BNB fell from $ 25 to $ 8, but recovered strongly, reaching its current price.