Binance, one of the top exchanges in the world completed Coin burn for 829,888 BNB(Binance coin), which is around US$15,600,000 for the period between January 1 to March 31, 2019.
The Binance CEO, CZ Binance shared his views on this and road ahead. Also, he emphasized on Decentralized exchanges as it is an important step for the growth of the industry.
If you don’t know why they burn BNB, or want to know what is “coin burn”, then here it is.
What Is Coin Burn?
Coin burn means permanently removing coins from circulation, reducing the total supply. Binance Exchange executes Coin Burn every quarter through the use of a smart contract function known as burn function.
The BNB burning events will continue till 50% of total BNB are destroyed i.e 100,000,000 BNB. Coin burn is done after the coin holder provides permission. The trades performed on the exchange within a 3-months period defines the number of coins to be burned.
CZ Binance explains that most of the times the price rise of BTC has eventually led the money to flow into other coins. But in the last quarter, there was a change in the pattern, the price of BNB rose even before BTC.
According to him the successful sale of BitTorrent (BTT) restored confidence in the market and revived interest in token projects.
Also, he says people trust the exchange, so to protect investors, they conduct special attention on tokens, projects, and teams when selecting projects for Launchpad. To ensure we bring credible and trustworthy projects to the ecosystem, each Launchpad project is screened through a rigorous selection process.
Still, most of the money is in fiat. To end this, the exchange has increased offerings on fiat gateways. They have significantly reduced fees for Binance.JE, which provides the lowest fees of all fiat exchanges in the world.
With the imminent launch of Binance Singapore, CZ hopes this will be a booster for the blockchain industry in Asia.