International, multi-language cryptocurrency exchange behemoth Binance has officially announced the fourth quarterly coin burn of its in-house Binance Coin token (BNB).
The announcement comes via Binance’s founder and CEO, Changpeng Zhao, on Twitter — where the business executive wrote:
@binance is doing a final tally on the numbers, and will announce our 4th quarterly burn in the next day or so, and finish the burn within a couple days after that. Thank you for your patience and support!
@binance is doing a final tally on the numbers, and will announce our 4th quarterly burn in the next day or so, and finish the burn within a couple days after that. Thank you for your patience and support! pic.twitter.com/ulWfHeUGbb
— CZ (not giving crypto away) (@cz_binance) July 16, 2018
The quarterly coin burn comes in accordance with the company’s white paper, which states:
Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining.
The first coin burn took place on October 18, 2017, and removed 986,000 BNB from the total supply, while the second took place in January 2018 and removed a more significant 1,821,586 BNB. Binance’s last quarterly coin burn took place in mid-April when the exchange destroyed 2,220,314 BNB (roughly $30MM USD equivalent) for the company’s third quarter of operation.
Immediately preceding and immediately following April’s burn announcement, the valuation of BNB [coin_price coin=binance-coin] took a hit as profit-taking traders who bought the rumors decided to sell the news. At that time, Binance’s token fell nearly 9 percent against Bitcoin.
KuCoin’s Third Fiscal Burn
Today also marks popular alternative exchange KuCoin’s third fiscal burn of its in-house KuCoin Shares token.
KuCoin’s fiscal coin burns function essentially the same as Binance’s, with the former exchange noting:
In accordance with our whitepaper, we have used 10% of profits from the 3rd fiscal quarter (Q2 2018) to buy back KCS from the market and burned 396,211 KCS
Following the burn, the current total supply of KCS [coin_price coin=kucoin-shares] is 180,334,365 KCS, while the current circulation supply is 90,334,365 KCS.
What do you think about Binance’s and KuCoin’s coin burns? Let us know in the comments below!
Images courtesy of Shutterstock.
[Full Disclosure: The author of this article is a holder of Binance Coin (BNB).]