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Binance Burns Tokens in Q2 | Token Burn Worth Nearly $400 Million, Profits Decline Over 30%

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Binance Burns Tokens in Q2 | Token Burn Worth Nearly $400 Million, Profits Decline Over 30%

Binance announced on July 19th that it has completed the 16th quarterly coin burn, destroying over 1.2 million Binance Coin (BNB) tokens worth nearly $400 million. Despite being the second-highest coin burn in history in terms of value, the profit for the second quarter decreased significantly in line with the trends in the cryptocurrency market.

16th Quarterly BNB Burn

According to the official announcement from Binance and on-chain transaction records, the data related to the second quarter coin burn is as follows:

  • 1,291,565 BNB burned in the quarter
  • 5,163 BNB burned under the "BNB Anti-Black Hole Plan"
  • Total of 1,296,728 BNB burned
  • Valued at approximately $393,673,653

The "BNB Anti-Black Hole Plan" was initiated in September last year to compensate users for BNB and assets lost due to incorrect operations. In the second quarter, users lost 5,163 BNB due to sending to the wrong address, worth nearly $1.6 million.

Binance CEO Changpeng Zhao also emphasized on Twitter that the unlocked 16 million BNB has been moved to the team address, and Binance has not sold any BNB to anyone, only carried out burns.

Second Quarter Profit May Decline by 30% from Previous Quarter

Previously reported that due to the potential "security nature" of Binance's profit repurchase of BNB, the new coin burn mechanism is now "based on spot trading volume," but the exact proportion was not explained. Profit for the quarter can be calculated in two ways:

1. FTX founder SBF's previous calculation for the first quarter burn estimated that Binance's new system is based on trading volume, with nearly 60% of revenue being burned. However, SBF did not provide a detailed explanation of fee income calculations. Based on this, the second-quarter profit is estimated to be around $6 billion, a 40% decline from SBF's first-quarter estimate of $10 billion.

2. Calculating profit at 20% of the old system, the second-quarter profit is $1.96 billion, a 30% decline from the first quarter.

Frequent Regulatory Warnings

Binance has recently faced international regulatory warnings, with some banks ceasing services, and Bitcoin once again falling below the $30,000 mark today, July 20. The expected coin burn announcement for the quarter is not likely to bring much positive news.

In the past 24 hours, BNB has dropped by 13%, with a price of $261 before the deadline.

Zhao Changpeng emphasized on Twitter that as Binance moves towards full legality and compliance, a new chapter for Binance is about to begin.

Coinbase Stock Price at All-Time Low

Next, Coinbase will also release its Q2 financial report. With no changes in revenue sources, it is foreseeable that Coinbase's trading volume revenue will also decline. The company's stock price closed at $220 last time, and its all-time low since going public is $208.