Burning at Both Ends
Market Meditations | April 25, 2022
Ethereum isn’t the only token doubling as a fire hazard these days. It’s easy to forget about Binance Smart Chain’s BNB coin, even though it’s comfortably sitting in 4th place by market cap, trailing only BTC, ETH and USDT. Binance may owe part of its sustained success to the fires of industry.
- $BNB is the cryptocurrency issued by Binance, the largest crypto exchange in the world. BEP-95 is the Binance Evolution Proposal that introduced a real-time burning mechanism to Binance Smart Chain.
- Launched in 2017 via ICO, BNB is used throughout the Binance ecosystem, like how Ethereum uses ETH for virtually everything on its own.
- Binance dedicates some of its quarterly revenue to purchasing and burning tokens to remove them from circulation. This has a positive influence on maintaining, or even raising, the price of its coin.
- Over 37 million BNB has been taken out of circulation using its burning mechanism, and the community aims to reduce the total circulating supply by half.
- Binance announced last Thursday that to comply with the EU’s restrictive measures against Russia, they now require residents and entities in Russia holding assets worth more than 10,000 EUR must complete proof-of-address verification.
During sideways or otherwise unexciting stretches in the market, it’s important to seize opportunities and focus on fundamentals. Binance has a strong foundation and broad user base too big to be ignored.