Binance Coin (BNB), the token run by the Binance exchange, is soon to become a much rarer asset. Every quarter, Binance chooses to burn a specific amount of their token, both as a means of combatting possible inflation and increasing rarity. Burning a token means that the creators choose to discard (or destroy) a certain number of tokens, meaning that it can never be used again— it reduces the overall circulating supply. Could the burning of Binance Coin increase its price? It’s certainly possible. BNB has been one of the top performing tokens of 2018 so far. While it did see the lows that most other cryptocurrencies saw during February, its chart shows that it picked up momentum pretty soon afterward.
When is the BNB burn happening?
We do not have a specific date for the Binance Coin burn, but we know that they happen each quarter. The last burn occurred on January 15, 2018, when they burned around 1,800,000 BNB. It is possible that the next burn will occur on April 15. We can be confident that the burn is occurring soon as Binance tweeted a message asking fans: ‘How many [BNB] do you think will be burned this quarter?’ A general rule regarding coin burns is that the higher the amount, the more positive the effect it has on the market.
Traders are already reacting to the predicted burn. The volume of BNB has risen significantly over the past few days in anticipation — The 24-hour volume has risen from $86,978,000 on April 11 to $137,782,000 on April 13 (a 58.40% rise).
Traders are eagerly awaiting what will happen to BNB’s price. This is their first quarterly burn since they became the most popular crypto exchange on the market— it currently holds more volume than any other exchange ($2,613,100,588). Many are predicting that Binance will burn around 2 million coins as the company is known to burn more each quarter than the last. If there is any price reaction, it should be visible almost immediately afterward.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.