Binance, the major cryptocurrency exchange, burns $38.8 million worth of BNB and raking in a profit of $194 million 4Q19, as Changpeng Zhao (CZ), the CEO of Binance, is “mystified” that BNB is down 54% from its ATH but not worried much.
CZ Says BNB Burns Not Priced In after 2.2 Million Binance Coin Taken Out of Circulation Forever https://t.co/lR47sNtfYT #BinanceCoinBNB — Crypto Mak 🌐 (@crypto__mak) January 18, 2020
On January 18, it has been reported that Binance conducted its 10th BNB burn which has been the second biggest burn in USD terms, at $38.8 million, and the 3rd highest burn in terms of BNB, at 2.2 million BNB.
However, Binance represented the first full quarter that factored in the performance of its most recent new products, margin trading and an increasing roster of fiat-to-crypto options.
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4Q19 was also the first full quarter of Binance Futures operations that “hit the ground running.”
Though in the last quarter, Bitcoin price lost 10.30% of its value, Binance still made a profit of $194 million, up from $185 million made last year and any of 2019’s quarter, on the basis that Binance burns its native tokens worth 20% of its profits every quarter.
According to CZ, The BNB burn event is common knowledge but it still is not priced in.
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Likewise, Binance is creating a scarcity of BNB while constantly finding means to make BNB more usable as CZ said about BNB’s utility:
“We began 2019 with 30+ use cases, and we ended it with 200+.”
It has been analyzed that Binance is doing everything to increase the demand for BNB while the regular burns keep on tightening the supply, which is bullish for BNB price.
However, BNB price has not been able to feel the effects. The event did not have any effect on the price as BNB is currently trading at 17.95, down 0.20% in the past 2-3 days, as per Coincodex.
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Thus, CZ ensures that 2020 is the year of adoption and intends to be “a major player in bringing that widespread adoption worldwide.”
Source: bitcoinexchangeguide.com