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Binance Announces $17,000,000 BNB Coin Burn in Q5 Recap

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Binance icon on the screen smartphone. Binance - cryptocurrency exchange. Moscow, Russia - October 14, 2018. Source: shutterstock.com

After a full year of operations that followed its initial coin offering (ICO), Binance, the largest cryptocurrency exchange by market volume, announced that it will burn 1,643,985.16 BNB coins in Q5, an amount that equates to $17,000,000.

Reasons Why Less BNB Coins Were Burned on Q5

Binance uses 20 percent of its profits to repurchase and burn BNB coins in a scheduled event that occurs on a quarterly basis. According to the press release, the fewer amount of BNB coins to burn during Q5 was a result of the reduced trading volumes on Binance due to the surrounding stability on the cryptocurrency market during that period. This led to a less volatile market and therefore fewer profits for cryptocurrency exchanges like Binance. Similarly, the BNB coin maintained its price, which also affected the number of tokens for burning.

Binance highlighted that the way quarters are calculated was readjusted recently to align with calendar quarters. Hence, Sept 30 was the last day of Q5, and trading volumes between Oct. 1 and Oct. 15 would not be considered for calculating profits, as well as for the amount of BNB tokens to burn.

Binance as Much More Than a Cryptocurrency Exchange

Binance plans to increase the scarcity and value of the Ethereum-based BNB coin by progressively burning 100 million out of the total 200 million BNB coins that will ever exist. Its creator Changpeng Zhao believes that Binance is more than just a crypto exchange, but on a mission to spread the freedom of money.

In this framework, the company has many activities to demonstrate across the Binance ecosystem, such as Binance Labs and Binance Info. It has established strategic partnerships and acquisitions like Trust Wallet, which has become the official digital wallet of Binance. Furthermore, the Binance Academy was created to spread knowledge about blockchain technology, and TravelbyBit aims to promote the adoption of the BNB coin in airports worldwide.

Lastly, as a strong proponent of using blockchain for social good, Binance has formed the Blockchain Charity Foundation. On top of the existing partnerships with Malta’s President Marie-Louise Coleiro Preca and the United Nations Development Programme, Binance announced earlier this month that it would change its listing fee policy and donate all listing fees to charity. Binance reassured investors, however, that the change on the listing fee policy would only have a minor impact to future BNB coin burns as trading volumes play a bigger factor in its revenues.

Binance Announces $17,000,000 BNB Coin Burn in Q5 Recap was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.