Popular among many bitcoin users-exchange Binance reminded its users about the upcoming burning of coins Coin Binance, the internal cryptocurrency platform. That is Binance Coin and what should be expected in connection with the forthcoming event helped to understand the edition of Bitcoinist.
Burning coins Coin Binance (BNB) occurs on a quarterly basis, and that users should be aware of this, the exchange reminded Thursday, April 12.
Not long until the quarterly #Binance BNB buyback and burn. How many $do you think BNB will be burned this quarter?
— Binance (@binance) 11 APR 2018
Coin BNB itself is a token of the standard ERC 20, created on the Ethereum blockchain. In the work of the platform it is used primarily for reduction of fees: currently, users are offered a discount of 50%, although in the future this figure will annually decrease.
It was initially simultaneously generated 20 million tokens BNB, and further issues are expected. Therefore, this cryptocurrency is deflationary by nature, which in theory with time increases its value.
“Each quarter we use 20% of our profit on redemption of BNB and their destruction. This will happen as long as we don’t pay for 50% of all tokens BNB (100 million)”, — stated in the white paper of the project.
So far we have already made two destroying coins – the first such event occurred in October 2017, when it was burned 986,000 BNB, the second in January 2018 (1,821,586 BNB), and in both cases they were announced in a few days.
The same situation is observed and in this time, and as expected, the process can be run this Sunday, April 15. In any case – April 18 is the last period, when the burning must be completed.
is it today? pic.twitter.com/rxrmCSuVZI
— CZ (@cz_binance) April 15, 2018.
At the moment, with the full issue of in 197,192,382 BNB circulation 116,261,604 BNB. Taking into account indicators such as the total volume of transactions on the stock exchange (more than $1.3 billion over the past day), we can assume that this time will be burned even more coins.
Thus, the exact number to be burning coins remains unknown as unknown and the exact timing of the completion of the procedure.
To predict how the price will behave the coins then, is also difficult. For instance in January after the second burning value BNB, shortly before surpassing $23, went down sharply, dropping the total below $9. However, it is worth remembering that it happened against the background of General market decline, by a wave which hit the coin.
Recall that in March the exchange Binance announced the opening of its office in Malta.