There has been little to get excited about this week on crypto markets. The bears have ramped up the pressure and the selloff has continued resulting in $14 billion leaving the space since late last week. Leading exchange Binance is soldiering on regardless and has just completed another coin burn.
Binance Burns 2 Million BNB
The world’s leading crypto exchange Binance has just completed its quarterly coin burn resulting in the destruction of just over 2 million BNB.
Article coming soon. But here it is. Been a productive & decent quarter. https://t.co/sqwhm7EzLs
— CZ Binance (@cz_binance) October 17, 2019
The exchange based token had been one of the year’s top performing altcoins until it dumped over 60% in a fall from $40 to $15. It is still up overall though and the coin burns serve to decrease the circulating supply.
At today’s prices the burn is the equivalent of $36.8 million and the supply has dropped to 185.5 million tokens. The company plans to destroy BNB each quarter based on the trading volume on the exchange, this will continue until 50% of the total supply, 100 million BNB, is burned.
The Block’s Larry Cermak has been doing some calculations to arrive at the conclusion that Binance has just had its second highest quarterly profit. He added that this 9th coin burn was higher than Q2
“Since Binance burns 20% of profits, we can deduce that it made approximately $186 million in profit in Q3. This is the second-highest quarterly profit”
Binance just completed their 9th quarterly burn for Q3, in which it burned nearly 2.1M BNB – more than in Q2 and Q3 combined. Since Binance burns 20% of profits, we can deduce that it made approximately $186 million in profit in Q3. This is the second-highest quarterly profit pic.twitter.com/0OVUmgcIIP
— Larry Cermak (@lawmaster) October 17, 2019
He added a few more charts showing that 14.5 million BNB have been burned so far leaving 85.5 million to go. The numbers are surprising when volumes and current market conditions are considered;
“Binance’s spot volume dried up in the last few months. The market has been dead and yet Binance just burned the equivalent of the second-best quarter in existence.”
Cermak also observed that the average daily volume in October is 2.6 times smaller than volume in June, adding that this indicates Binance must be generating a lot more from other branches – such as Futures and peer to peer OTC crypto trading in China.
He added that Binance quietly changed their whitepaper in April to remove the clause about the firm using 20% of its profits to buy back BNB and revenue for exorbitant listing fees has been replaced by other sources.
BNB Crypto Market Reaction
At the time of writing Binance Coin has not reacted and was trading marginally down on the day. It is currently priced at just over $18 which is flat on the week but down 12% on the same time last month.
Daily volume is around $237 million according to Coinmarketcap.com and BNB is currently ranked seventh with a market capitalization of $2.8 billion. It has not been able to escape the bears and has fallen with the rest of the crypto market over the past three months, shedding over 60% since its epic pump to $40 in June.