Binance Announces Quarterly BNB Burn to Distribute Earnings
Binance, which established itself as the leading exchange, burned nearly $30 million’s worth of tokens to distribute earnings and increase the value of the asset.
Binance finished another installment of its quarterly token burn, aimed to increase the value of Binance Coin, as well as serve as a mechanism to distribute earnings. In the run-up period to the token burn, BNB was growing, but the news itself saw the asset retreat a little. The burn of 2,220,314 tokens is worth around $30 million.
Binance had around $200 million in earnings in the last quarter of 2017, and for Q1 2018 active trading brought $150 million in earnings.
BNB was down 8% to $12.39, as it remained one of the most actively traded assets on Binance, not only as a technicality, but as a somewhat speculative position. Binance is seeing a transfer of funds from Tethers into BNB coins, which facilitate other pairings with low fees.
Binance is a crypto-only exchange, hence the inflow of funds from other exchanges in the form of USDT. Renewed interest in trading as both Bitcoin and altcoins started to boom may further boost the value of BNB. However, the asset has not fulfilled the predictions of a $50 price in the first months of 2018. BNB reached a peak around $25 before sliding back. However, BNB remained steadied in the first quarter, as it benefited from its position as a trading utility token.
Additionally, the BNB digital asset expects a migration to its proprietary blockchain soon, which may give a new boost to prices.
However, the biggest risk for Binance is that the boom of new funds for trading would end. So far, Binance has become attractive for several booming digital assets, most notably Verge (XVG), but also other hot projects such as VeChain (VEN). Additionally, Binance offers utility to its users, by distributing Gas to NEO holders, arranging airdrops without the need to use a private key wallet, as well as servicing some of the high-profile forks of Bitcoin. Additionally, Binance will register the EOS token balances before the launch of the main net.