Key message: major crypto exchange Binance has completed its 16th quarterly Binance Coin Burn (BNB), destroying over $390 million worth of BNB. On July 18, the exchange announced that it had destroyed 1,296,728 BNB. On that day, it was worth just under $400 million.
Binance and token burning
Binance has committed to burning 20% of the exchange’s profits each quarter. So the latest action suggests that the exchange could have made $2 billion during the second quarter of 2021. It is not possible to retrospectively analyze the action and determine the company’s profit because the exchange has switched to a new burning scheme. The exchange covers losses and returns tokens to users in certain circumstances. These token numbers are then deducted by the exchange from the quarterly totals.
This is the second largest token burn in BNB history. In fact, nearly $600 million worth of tokens were destroyed in March. Although the exchange always burns 20% of profits, this event seems to have had little impact on the market as BNB prices moved sideways over the weekend.
The crypto exchange has been battling regulators on several fronts recently, with significant regulatory pressure coming from the UK, Germany and Hong Kong.