Technical analysis & news on Blockchain & Cryptocurrencies | Coincronica
Crypto News Trading news

Questions Asked Following Binance’s 9th Buyback of Exchange Token BNB

Malta-based exchange Binance recently completed the ninth quarterly burn of its popular Binance Coin token, BNB.

Last week the exchange burnt just over two million BNB tokens, with a value of nearly $37 million.

Since 2017, Binance has conducted regular token ‘burns’, in which they buy back the token from the market before destroying them, thus removing them from circulation and acting as a stimulus to the asset’s price.

In June, following the eighth burn, He-Yi Binance’s co-founder was forced to take to social media to defend a change in the way Binance burnt its tokens.

The controversial change meant that rather than burning 20 per cent of the tokens in circulation, the exchange decided to burn the portion that had been allocated to the exchange’s management team – leading to vehemently denied accusations that the new method would destabilize and devalue the currency.

Now, questions are being asked about two more things that stand out from the ninth burn.

Firstly, investors are confused about the number of BNB burnt given the exchange’s lacklustre third quarter performance, that saw its daily volume well below of its second quarter figures.

The eighth burn saw the exchange burn 808,000 tokens, despite the period being a much more successful one in terms of daily trading volume.

Secondly, questions are being asked about the total number of BNB burnt and in its existence after confusion in some of Binance’s numbers was highlighted.

In its white paper the exchange previously told people there would only ever be 200 million BNB tokens in circulation.

The announcement on the ninth burn means that in total 14,525,135 BNB have now been burnt since the process began in 2017.

This leaves a total of 185,474,865 BNB remaining. However, Binance is being asked to explain why the burn address wallet is displaying 48,461,323 BNB remaining.

Taken together from both sources, the recent announcement and the total in the burn wallet, Binance seems to have 233,936,188 BNB tokens remaining.

This figure is confusing investors, and seems to contradict the exchange’s own white paper. 

It has led to allegations about the exchanges potentially “shady” accountancy and business practices.

So what’s the explanation? Maybe Binance will enlighten us all.

Related posts

Neueste Nachrichten in Crypto: Blockchain Consensus und Patente, COVID-19 Crypto Scams und viele mehr

Jack Jones

Secure your digital assets with Plutus Capital and Onchain Custodian

Jack Jones

FinexArena Review – Eine Umfassende Einschätzung der Berühmten Handelsplattform

Jack Jones