Binance, the world’s leading cryptocurrency exchange by volume, has completed its ninth quarterly burn of Binance Coin (BNB). The event involved upwards of two million tokens, worth more than $36 million. This number represents 20% of the company’s quarterly profit. Considering that the burn served to eliminate BNB from circulation, the question is whether the coin’s price will react.
Binance Burns Two Million BNB
Binance has successfully completed its ninth BNB coin burn. The event saw a total of 2,061,888 BNB burned, which is worth roughly $36,700,000. In its very young age, Binance has just surpassed US$1 billion in cumulative profit.
Cumulatively, Binance also just crossed $1 billion in profit. pic.twitter.com/mNHdnOdQgS
— Larry Cermak (@lawmaster) October 17, 2019
The last burn took place back in July, and it saw about $23,838,000 million worth of BNB taken out of the supply.
This implies a growth of about 56% in the company’s profits over the past three months alone. During this period, Binance launched Bitcoin futures, which has already surpassed spot trading in terms of volume, perhaps adding to the company’s revenues.
In addition, Binance added other features to its platform, including staking for 12 cryptocurrencies at the time of this writing. Users are able to stake those cryptos in return for annualized interest payments, giving them a way to earn passive income.
Despite the plunging prices of cryptocurrencies in the past three months, the company is obviously doing well and has managed to keep making money.
Will the BNB Price React?
In theory, when the supply of an asset is reduced while the demand for it remains the same or increases, its price should go up.
Since news of the burn broke, the BNB price has managed to increase slightly.
As seen on the chart, BNB rose to slightly above $18, which is an increase of a little more than 3%. It will be interesting to see whether or not the coin’s gains will continue.