Binance, the leader in centralized platforms for the exchange of cryptocurrencies has just carried out the largest destruction of tokens in its history, by burning the equivalent of 68 million dollars in BNB tokens.
2.2 million BNB tokens withdrawn from circulation
That’s it! Who says new season says new burn on the side of Binance. The exchange platform has just destroyed 2.253 million BNB tokens for a total value of 68 million dollars.
This destruction of tokens is the largest in Binance’s history. In comparison, Binance destroyed the equivalent of $38 million last quarter.
According to a publication by Binance, the rise of DeFi and the launch of the Binance Smart Chain would be the causes of the explosion of volume on the platform. As the number of BNBs destroyed is a function of volume, this also explains the record in terms of funds destroyed.
Buyback, really?
A point that peaks our curiosity. Indeed, in his publication concerning the destruction of these tokens, Changpeng “CZ” Zhao mentioned a buyback.
In the first BNB whitepaper, Binance had announced that the destroyed tokens would be bought back on the public markets with 20% of the profits from the exchange.
This statement was later changed, with the profits giving way to trading volumes. Thus, the number of BNBs destroyed is now a function of volume and not of the platform’s profits.
When questioned by The Block at the time of the events, the CEO of Binance stated that this change was made so that the BNB would not be seen as a security by some jurisdictions. In practice, the tokens destroyed are now those held in reserve by Binance and no longer tokens repurchased on the public market.
Therefore, as there is no longer any notion of a buyback, the mention of the buyback by CZ remains mysterious.
TheBlock’s study also shows inconsistencies in the number of tokens destroyed in relation to the volume recorded, once again leaving the details of the transaction puzzling.
In practice, this destruction had no impact on the BNB price, which is still around 30 dollars. So this is a deal to watch!
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