Binance's fourth Coin combustion
Binance is now known for his coin burns. Each quarter, the Bitcoin Exchange buys back part of its BNB coins and then destroys them. The “burning” has become so popular that users expect them eagerly. Many also deliberately buy BNB coins in advance of a burn to benefit from a rise in prices.
In his current announcement, Zhao wrote on Twitter:
“Binance is in the process of finalizing the numbers. The fourth quarterly incineration should be announced around tomorrow and be completed within a few days thereafter. Thank you for your patience and support. “
The last coal incineration took place three months ago on April 15th. At the time, over 2 million BNB coins were destroyed. That was about 1 percent of the total amount of BNB coins.
According to Binance's white paper, the crypto exchange aims to spend 20 percent of the profits each month on buying back BNB coins. Subsequently, the company destroys the repurchased coins. This is to be continued until 50 percent of all BNB coins, or about 100 million units, have been destroyed.
At the time of the creation of the BNB Coins, a strict limit of 200 million coins had been set. There will be no more coins in the future. Thus, the Binance cryptocurrency is essentially deflationary and rewards those who invest in the coins.In addition, the coin offers its owners another advantage. For example, customers paying Binary fees with BNB Coins receive significant discounts.
What is the impact of Binance's high profits on the buyback?
Even though cryptocurrency prices have plummeted in recent months, Binance is seeing new all-time highs in its profits. Zhao recently said in an interview with Bloomberg that the crypto exchange has taken in nearly $ 300 million in the first six months of 2018 alone. In addition, the user base of the crypto exchange is growing fast. In view of this, it is obvious that this time around Coin Combustion will be bigger than the previous one.Binance's in-house cryptocurrency has delivered exceptionally good results over the past year. Compared to the former price at the beginning of the Initial Coin Offering (ICO), the coin has increased by a hundredfold. In addition, the cryptocurrency has advanced to number 17 in the largest cryptocurrencies by market capitalization. At the time of writing, a BNB coin was traded for $ 13.31.
Presumably the price will continue to rise after the upcoming coal burning, as was the case after the recent burns.
Sources: Twitter, Bloomberg, Cryptocurrency courses, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/Binance-kurs-steigen-der-neechste-coin-burn-steht-an/
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