Binance Removes from Circulation BNB Worth $68M in Latest Coin Burn

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Binance Removes from Circulation BNB Worth $68M in Latest Coin Burn 4

Quick take:

CZ and the team at Binance, have carried out the 13th quarterly BNB coin burn 2,253,888 BNB worth $68 Million has forever been removed from circulation According to the project’s whitepaper, the token burns will continue until only 100 million out of the initial 200 million BNB are left in circulation The quarterly coin burns are one reason many Binance Coin investors are playing the long game with BNB

Earlier today, CZ and the team at Binance notified the crypto-verse of the 13th quarterly BNB coin burn at the exchange. The initial tweet by CZ announcing the coin burn was a simple statement of ‘BURN’ as can be seen below. The @Whale_alert bot also captured the event on the blockchain.

BURN

— CZ Binance (@cz_binance) October 17, 2020

🔥🔥🔥🔥🔥🔥🔥 2,253,021 #BNB (68,278,214 USD) burned at #Binance

Tx: https://t.co/8EuIXLwJWc

— Whale Alert (@whale_alert) October 17, 2020

$68 Million in Binance Coin Out of Circulation Forever

As can be seen in the tweet by @Whale_alert, a total of 2,253,021 BNB was permanently removed from circulation. This amount of BNB was worth $68.278 Million at the time of the event.

BNB Coin Burns Are Healthy

In a second tweet, Binance CEO, Changpeng Zhao, explained that understanding coin burns were essential for anyone wanting to reach financial freedom.

$68,000,000 USD worth of #BNB taken out of circulation forever.

If you don’t understand: burn, buyback, airdrop, QE, and stimulus, then you are at a significant disadvantage to reach financial freedom. Better learn it.

In an additional blog post announcing the BNB coin burn, the team at Binance explained that the 13th quarterly coin burn was the highest in terms of fiat value. However, in terms of BNB destroyed, this was the fourth-highest amount.

…we just burned 2,253,021 BNB, plus 867 BNB from the Pioneer Burn Program, for a total of 2,253,888 BNB. This effectively took $68 million USD worth of BNB out of circulation forever. This is a healthy, steady increase for our BNB burn in USD terms, compared to the last quarter.

This 13th quarterly BNB burn is the highest-ever in fiat terms and fourth-highest in the amount of BNB burned.

Below is a breakdown of past BNB coin burns and their corresponding amounts and value in fiat courtesy of the team at Binance.

Binance Removes from Circulation BNB Worth $68M in Latest Coin Burn 3

BNB Coin Burns is One Reason to Play the Long Game with Binance Coin

According to the Binance project whitepaper, the BNB coin burns will continue to occur every quarter until there are 100 Million BNB left out the initial 200 million issued during the ICO back in 2017. According to Coinmarketcap, Binance Coin currently has a total supply of 176,406,561 BNB with 144,406,561 BNB in circulation.

Using the current market cap of $4.379 Billion, and the assumption that eventually only 100 Million BNB will be in circulation, the price of BNB would be at $43.79. This figure ignores the growth of DeFi on the Binance Smart Chain and the introduction of new capital into the crypto markets that could propel BNB even further.

By using this simple calculation, it is easy to see why several BNB investors are playing the long game with BNB.

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