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The cryptocurrency exchange Binance has conducted a new coin burn of 2,061,888 BNB. As per the official announcement of the 9th BNB burn, the company informed they were taking away $36,700,00 USD worth of BNB out of circulation.
Binance 9th BNB Burn
In a recent article released by Changpeng Zhao, the CEO of Binance, explained that the current number of BNB burned represents significant growth over the last quarter.
He mentioned that key contributing factors to this growth include new services like Margin trading and an increased number of fiat on-ramps to make purchasing cryptocurrencies more accessible.
Changpeng Zhao went on explaining that there were other services introduced and that are helping the whole company to expand. Mr. Zhao mentioned they are also working on additional services that are still being built.
The 9th BNB burn was the third-largest burning in terms of BNB since the fourth burn took place over a year ago. At that time, 2,528,767 BNB were removed from circulation.
Despite Binance’s current active user base, that is one of the largest in the space, the profits remain smaller compared to some other crypto exchanges. This is because the exchange is working in order to provide the lowest fees in the industry.
Changpeng Zhao commented about it:
“We like to keep the barriers to entry as low as possible and the cost of trading to a bare minimum for our community. We believe this is best for the community, as well as our long-term growth and the growth of the industry.”
He went on by saying that they actively fund and invest in long-term growth projects despite the market conditions. The team behind Binance considers that expanding the ecosystem and growing the industry will bring about significant benefits in the long term.
Finally, Changpeng Zhao said that Binance believes BNB has grown beyond the point of depending on reducing supply to increase value.
“A far bigger portion of BNB value comes from its utility,” said Changpeng Zhao.
He then mentioned that they prioritize increasing the utility of BNB over short-term profits for Binance.
He added that for this burn they have burned half of the tokens from the team addresses and half from other wallets owned by Binance.
CZ clarified that they do not do a “buy-back” because to do so they have to sell the coins they have and re-buy them later.