60% down, 40% more to go. That is the number of Binance coin tokens that are planned to be removed from circulation (i.e., burnt) according to the Binance exchange’s whitepaper. On Tuesday, April 16th, Binance announced the burn of 829,888 BNB tokens whose value at the time of the burn is estimated to be about $15.6 million.
That concludes the seventh coin burn since the launch of the exchange. The action continues the practice of Binance using 20% of its quarterly profits to buy back its tokens in circulation and burning them. The goal is to burn 100 million of these tokens which represents half of the total tokens that were released during the token generation event at the launch of the Binance platform.
From the announcement, we can deduce that Binance made roughly $78 million in profits in the Q1 2019 period, which is definitely not bad considering that the cryptocurrency industry was still in crypto winter at this time.
One point to note from this announcement is that Binance has actually burned close to half the tokens it burnt in the 6th token burn exercise. Binance CEO Changpeng Zhao actually mentions this in the blog post and tries explaining the reason why. He says that Binance Coin has more than tripled in value between the start of the year and the current date.
Last quarter, Binance destroyed 1,623,818 BNB tokens representing about $9.4 million at the time.
“The amount of BNB burned this quarter is about half the amount burned last quarter. But considering BNB has more than tripled in value during these past 3 months, the USD equivalent is significantly higher than last quarter,” he explains.
Since the beginning of the year, Binance has had to make a series of positive announcements that did help propel the value of the native token. During this quarter the popular exchange relaunched the formerly defunct token launch platform Launchpad. Arguably the leading cause of the price rally the platform saw the launch of three projects that sold out in record times. To participate in the token sales, the participants had to acquire BNB.
Other than the Launchpad, several other developments including the launch of he Binance DEX in testnet and the launch of the Binance Chain blockchain announcements also contributed. This quarter also saw the launch of two fiat-to-crypto exchanges, one in Jersey and one Australia. The exchange also introduced the use of credit cards to purchase crypto, another bullish move.
Overall, Binance has adhered to its #BUIDL mantra and this has had a significant effect on its price.