Largest Ever! BNB Executes 12th Quarterly Burn, Removing $60.5 Million Worth of Tokens from Circulation

The cryptocurrency exchange Binance implemented its 12th quarterly token burn today, totaling 3,477,388 BNB (approximately equivalent to 60.5 million US dollars). According to official data, this is the largest quarterly burn in Binance's history.

Largest Burn

Every period, Binance burns its platform token BNB based on the trading fees from spot, margin, and futures transactions, as well as revenues from other investment projects and ecosystem partners. According to data provided by Binance, this burn is the largest quarterly burn in terms of both the quantity of BNB and its fiat value in the history of the platform.

However, the market price of BNB did not seem to respond to this large burn. Following the announcement, the price of BNB did not significantly increase, and at the time of writing, the market price of BNB was even lower than it was when the news was released.

No Change in Circulating Supply

As mentioned earlier, in July 2019, Binance announced during the execution of the eighth BNB (Binance Coin) quarterly burn that the tokens to be burned in the future would not be repurchased from the market but would be directly burned from the team's holdings (the team holds 80 million BNB unlocked over four years, distributed in 5 phases), until one billion BNB are burned.

In other words, Binance's token burn plan will not reduce the circulating supply of BNB in the market nor bring external buying pressure to the platform token, as these tokens were not in circulation in the market to begin with. However, the reduction in team holdings can help mitigate the internal selling pressure, which is still beneficial for the long-term value of BNB.