The world’s largest cryptocurrency exchange, Binance, recently announced the completion of its 17th quarterly burn of its token, Binance Coin (BNB). As specified in its roadmap, the exchange dedicates twenty percent of its quarterly profits to the burning of some of its tokens.
In the latest burn, about 1.3 million BNB (worth around $639 million) were burned, a figure that suggests the company realized approximately $3.2 billion in profit within the last quarter.
An additional 17,839 BNB ($8.5 million) tokens were burnt via the Binance Power Burn Program, an incentive that aims to assist users who had lost tokens to smart contracts through mistakes in honest transactions. The exchange chooses to cover the losses, returning the lost tokens little by little to their owners under specific circumstances and then deducts the token numbers from their quarterly burn.
Lately, Binance seems to be having issues with several authorities. For instance, Italian regulator, Consob, has had cause to complain about and question Binance’s operations in Italy.
In July, European and British regulators reportedly planned to investigate the exchange to determine whether it had breached any of its security laws via its tokenized stock trading feature. Binance subsequently responded by delisting the offering from its platform.
The exchange has also had to deal with problems with the U.S. Commodities Futures Trading Commission (CFTC), Thailand’s Securities and Exchange Commission (SEC) and a few other authorities for allegedly violating the countries’ regulations.
Interestingly, Binance does not seem to be affected by any of the issues with the regulators. Compared to its last (July) estimated quarterly profit of about $2 billion, the exchange did make a significant increase in profit in its latest quarter.
In fact, the latest BNB burn valued at over $639 million, marks a new record-high for the exchange as it is so far the largest in Binance’s token fiat value burn history, with its 15th quarter burn of $600 million worth of BNB dropping to second place.
As at the time of writing, Binance Coin (BNB), was trading at a little above $478, having jumped significantly because of news that Binance committed $1 billion to build out the Binance Smart Chain ecosystem.
30 May 2023
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