Binance Completes Burning Over Half a Billion Dollars worth of BNB

The world’s largest cryptocurrency exchange has burned $547 million worth of BNB through a routine burn mechanism.

Information comes from Binance, this exchange has officially destroyed 2,065,152 BNB tokens until October 13. This property is worth about 547 million USD. In addition, 4,833 BNB was burned through the Pioneer Burn mechanism.

This BNB burn caused the price of the cryptocurrency of the Binance exchange to increase slightly shortly after. According to market data, the price of BNB rose on October 13, from $ 258.4 to about $ 274, equivalent to an increase of 3.3%. BNB’s 24-hour trading volume that day also increased by more than 93%, hovering around the $1.15 billion mark. Up to now, BNB has continued to consolidate the 5th position on the ranking of projects with the largest market capitalization in the cryptocurrency market.

This is the project’s 21st coin burn. According to the description from Binance, the automatic quarterly coin burning system will be released in December 2021. This mechanism allows BNB to automatically adjust the amount of coins burned based on the price and the number of blocks generated on the Binance Smart Chain (BSC) network.

To date, there have been 21 shards of BNB. According to BNBBurn statistics, more than 38.99 million BNB coins were destroyed, accounting for about 19% of the total project supply. Coin burning is done in order to reduce the supply, to avoid inflation. In the long term, burning of cryptocurrencies is expected to help this asset class increase in price. Projects with a mechanism to burn coins and tokens are considered a good sign. According to CoinDesk, coin burning is comparable to companies buying back their own shares to increase stock value for investors.

On October 7, Binance Smart Chain (BSC), the blockchain of the world’s largest cryptocurrency exchange Binance, had to suspend operations after a suspected attack. Transaction history on BSC shows that the attacker generated about 2 million tokens.

See also: Binance continues its quarterly BNB burn, removing $444 million worth of tokens

The actual damage may be lower because the attacker is unlikely to get all of this money off the chain, and stakeholders can intervene to destroy this “false” generated amount. Binance estimates $100-110 million worth of tokens have been moved off-chain.