The Binance exchange has completed its 13th quarterly burn today. Accordingly, Binance burned a total of 2,253,888 BNB (roughly $68,000,000 USD equivalent), which is a 12,4% increase from $ 60,500,000 million in Q2.
This 13th quarterly BNB burn is the highest-ever in fiat terms and fourth-highest in the amount of BNB burned.
Binance’s quarterly coin burns aim to reduce supply and in turn increase the price of the token. In its whitepaper, Binance says for burns it uses 20% of its profits to buy Binance Coin on the open market and burn them up to a maximum of 50% of its supply.
Changpeng Zhao, Binance’s CEO, affirmed that thanks to the success of multiple achievements, product rollouts, and initiatives throughout the third quarter of 2020 his company was able to burn such a vast number of tokens. He also talks about DeFi and CeFi:
“In the long run, I believe DeFi will be the future, ie, overtaking CEX (centralized exchanges). But it won’t happen just yet, for a number of reasons. While the TVL (total value locked) on DeFi is high, the number of active users is still low. Not to mention, 99.9% of the world’s wealth is still in fiat, and we still need CEX fiat bridges to bring them into the crypto world (more on this later). And if we want true adoption, 99% of the mass population – the average users – are not technical enough to securely hold their own private keys given the tools we have today. More tooling needs to be built. And CEX is still easier to use for the majority of people, for now”.
Binance’s cryptocurrency gives users get discounts when trading on the exchange and can be traded on the open market.
Binance Coin (BNB), currently ranked #6 by market cap, is down 1.45% over the past 24 hours. BNB has a market cap of $4.373B with a 24-hour volume of $404M.
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