The world’s largest cryptocurrency exchange Binance He made a new move. In this context, it announced today that it will burn a “significant amount of Binance-pegged” assets across various chains. “The equivalent amount of these tokens used as collateral on their local networks will be released later,” the company stated.
Koinfinans.com As we reported, however, the exchange did not specify exactly what tokens would be affected by the burn.
Numerous crypto- Such burn programs adopted by the organization aim to reduce the circulating supply of a particular asset, making it scarcer and potentially more valuable over time. One of the most popular projects using this strategy is Shiba Inu, whose ecosystem burns tokens quite frequently.
While some users praised Binance for this move, they claimed that it reflected its “commitment to the token economy” and that the firm remained true to its promise of greater transparency. Others believe this move could trigger further volatility for the affected cryptocurrencies, especially those with smaller market caps.
Last week, Binance completed its 26th quarterly burn of BNB tokens, reducing the supply by 2.14 million assets (equal to approximately $660 million at the time).
Noting that the exchange aims to reduce the total circulating supply of its native token to 100 million, which is 50% lower than the starting point must.
Today the @BNBCHAIN team completed the 26th quarterly #BNB burn, reducing the supply by 2.14M $BNB 🔥 https://t.co/S6u2Q2MZ4Q
— Binance (@binance) January 17, 2024
At first, BNB’s price showed little to no fluctuation and continued to trade sideways around $310 (according to data from CoinGecko). It followed an upward move in the following days and surpassed $320 earlier today before falling back to its current level of $315.
