2018-7-18 16:29 |
In a recent LinkedIn Pulse post, the CEO of Binance, Changpeng Zhao, revealed that the exchange is set to burn at least 2.5 million BNB tokens (Binance tokens) this quarter, valued at over $32 million. The token burn will be executed in the next two days, as the company announced on its website.
A LinkedIn Post Reveals AllZhao wrote:
“This quarter we will burn 2,528,767 BNB (roughly $32,700,000 USD), up from 2,220,314 BNB last quarter (roughly $30,000,000 USD at the time).”
He noted that the BTC markets have remained flat, but the earnings of Binance is not affected. The company is burning the highest number of its BNB tokens yet, for which Zhao thanked the crypto community for their strong support.
He also said that the current bearish market in cryptocurrencies “doesn’t make much sense” and pointed out that several firms have raised over $14 billion from ICOs year-to-date. This is four times the amount raised in the entire year of 2017. He believes that favorable regulations from several jurisdictions will help in boosting prices, along with rising ICO fundraising number.
Zhao writes that jurisdictions are now changing their attitudes from “unsure” to “want to attract blockchain businesses.” The increase in institutional investment in this space is also exciting. He said that the increase in the number of firms and the size of the orders don’t match up with the falling prices, suggesting that markets tend to overreact on both high and low sides.
Do People Understand Token Burn?A lot of people do not understand what a token burn is all about. Zhao explains that a token burn is equivalent to dividend distribution. When a small number of tokens are burned, their value gets distributed to the rest of the coins. He believes that people consider dividend distribution is better than token burn, which is wrong.
When a company distributes dividends, it incurs significant network transfer fees. It involves very complex tax and legal implications and generally requires more work. He went ahead to call buyback without burning somewhat “cheating” and called out concepts such as “trade-mining” interesting, but flawed. He mentioned other concepts like zero fee listings, 100% dividend distributions and 100% refund on trading fees, and called all these schemes scams to sell coins.
Defending BNB tokens, Zhao said that over 20 exchanges listed their coin without requests from Binance, showing a strong positive sentiment.
Binance Set to Burn Over 2.5 Million BNB, CZ Notes Increase in Institutional Money was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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