Binance, the world’s major cryptocurrency exchange, has burned $390,855,150 worth of BNB tokens in its 16th quarterly token burn event.
It has been reported that according to the schedule in the white paper, the remaining 16m BNB was unlocked, and moved to a team address. Changpeng Zhao (CZ), the CEO of Binance, said that the team has never used or sold a single team BNB thus far, only burned them.
However, the exchange noted an additional 5,163 BNB that were destroyed through its Pioneer Burn Program, an incentive that aims to help users who have lost tokens through honestly mistaken transactions to smart contracts.
The report said that Binance covers the losses, returning the tokens to users under specific circumstances. These token numbers are then deducted from the quarterly burn totals by the exchange. Binance has pledged to burn 20% of the exchange’s profits every quarter, with the latest burn suggesting the exchange could have profited by $2 billion during the second quarter of 2021.
Likewise, the latest burn is the second-largest in Binance Coin's history by fiat value, with a whopping $600 million worth BNB having been destroyed in March. Despite the scale of the burn, the event appears to have had little impact on the Binance Coin markets, with BNB prices trending sideways over the weekend.
Binance has recently been battling regulators on multiple fronts, with significant regulatory pressure coming from the United Kingdom, Germany, and Hong Kong. In the UK, a number of high street banks have also curtailed their customers from transacting with the exchange as the country’s financial regulator clamps down on unregulated cryptocurrency trading platforms.
Thus, last Friday (July 16), Binance suddenly halted the sale of its stock tokens.