Binance, a multinational cryptocurrency exchange has announced its latest Binance Coin (BNB) burn. The exchange has reportedly burned a tremendous number of BNB tokens in the process.
$547 Million Worth of BNB Tokens
The exchange officials confirmed that it was their 21st quarterly burn and in the process, they burned $547 million worth of BNB tokens.
The exchange confirmed that the particular burning has been executed successfully and without any difficulties.
2,065,152 BNB Tokens Burned
According to the official announcement by Binance officials, there were a total of 2,065,152 BNB tokens destroyed in the process.
After the burn, the trading value of the BNB token increased. At the time of writing, the total number of BNB tokens burned accounts for a little less than $600 million.
Additional Tokens were burned
Binance officials announced that they also burned more BNB tokens through their Pioneer Burn Program. They revealed that a total of 4,833.25 BNB tokens were burned through the particular program.
The particular program is responsible for collecting the assets that the users end up losing due to honest mistakes.
These losses are then covered by the exchange and the users sent the assets to end up losing. However, the users must meet certain conditions before they can be considered eligible for the assets.
Binance continues keeping a track of these assets and then deducts them from the quarterly burning of BNB tokens.
20% of Quarterly Profits are burned
According to the exchange, it committed to burning 20% of the total profits it would generate on a quarterly basis.
It is being suggested that in the third quarter of 2022, Binance may have generated a profit worth $2.7 billion. This is why it proceeded with burning $547 million worth of BNB for the third quarter.
So far, the Q3 2022 BNB token burn is the second-highest valued burn in the history of BNB token burns carried out by Binance. In terms of value, there is only one BNB token burn that was carried out in 2021.
Back in 2021, Binance reportedly carried out a $600 million worth of BNB token burn. It is currently the largest burn and Binance has all the intentions of surpassing it in the future.
No Major Impact on BNB
Although the burn has indeed helped boost the trading price of the BNB token, there is no telling if the positive trend would continue.
BNB may lose its grip in the upward movement and may into the negative zone given the current market conditions. If nothing else supports the trend for BNB, then its price may continue declining in near future.