Binance, the world’s leading cryptocurrency exchange, has completed its 9th quarterly burn of Binance Coin (BNB). The event saw upwards of two million tokens, worth more than $36 million. This number represents 20% of the company’s quarterly profits. Naturally, as the burn takes place and it eliminates BNB from circulation, the price might react, but will it?
Binance Burns Two Million BNB
Binance has managed to successfully complete its 9th BNB coin burn. The event saw a total of 2,061,888 BNB burned, which is roughly around $36,700,000. This represents 20% of Binance’s quarterly profits. In its very young age, Binance had just crossed one billion USD in revenue.
Cumulatively, Binance also just crossed $1 billion in profit. pic.twitter.com/mNHdnOdQgS
— Larry Cermak (@lawmaster) October 17, 2019
It’s interesting to note that the last burn took place back in July and it saw BNB worth about $23,838,000 million taken out of the supply.
This implies a growth of about 56% in the company’s profits over the past three months alone. During this period, Binance launched Bitcoin futures trading, which already surpassed the spot trading in terms of volumes, perhaps adding to the company’s revenues.
In addition, Binance also added other features to its platform, including Binance staking for 12 cryptocurrencies at the time of this writing. Users are able to stake them in return for an annualized interest rate, hence giving them an option to earn passively.
Despite the plunging prices of cryptocurrencies in the past three months, the company is obviously doing well and it manages to keep its profits increasing.
Will BNB Price React?
In theory, when the supply of an asset is reduced while the demand for it remains the same or increases, its price should go up.
Since news of the burn broke out, BNB has managed to mark a slight increase in its price.
As seen on the chart, BNB increased to slightly above $18, which is an increase of a little more than 3%. It’s interesting to see whether the coin will be able to gain more.