Flamin’ Hot: Binance Just Burned $24 Million Worth of BNB Coins
The leadership at Binance continues to strive toward bringing value to their users. This week, the Malta-based cryptocurrency exchange completed its eighth quarterly token burn, wherein nearly 809,000 BNB tokens were burned, that sum being worth approximately $24 million USD at the time of the burn.
The company said this latest token burn was the first toward its new goal of burning 100 million BNB tokens:
“Starting with this burn, Binance will relinquish the BNB tokens allocated to the Binance team and contribute this BNB towards our commitment to burning a total of 100 million BNB. The Binance team tokens equate to 40% of the total BNB supply (80,000,000 BNB, currently worth about US$2,400,000,000).”
The idea? To use deflationary pressure to make BNB tokens worth more in the long run — e.g. not unlike how Kyber Network Crystals (KNC) are burned after every Kyber Network transaction. The large token burn comes after the exchange just had its best two-month stretch in its fledgling history. From May to June 2019, Binance facilitated around $125 billion — the largest reported transaction volume the platform has had in any period to date. Whether the company can maintain such prolific volume as it phases out American users from Binance.com remains to be seen. But Binance US is coming, as well as new margin trading and futures services on Binance.com. In that context, the exchange brand has various ways it’s fighting to maintain its dominance in the cryptoeconomy.
Binance Just Unveiled Its New Margin Trading Service
This week, Binance 2.0 arrived. As part of that arrival, a new Margin Trading service was unfurled alongside the platform’s main exchange service. Both of these services have been underpinned by a new advanced trading engine that has been designed for “better order matching and press indexes for margin level calculations to enable lower liquidations,” the company said in a July 11th press release. As Binance chief operating officier and co-founder Changpeng Zhao explained
on the news:
“This is another step in providing an inclusive cryptocurrency trading platform catering to the needs of both advanced institutional traders and retail traders under the same roof. We are providing a new tool in the financial services and cryptocurrency markets to help amplify trading results of successful trades.”
With the new margin trading service activated, Binance users who have verified their identities will now be able to put up cryptocurrency collateral in a special wallet in order to make leveraged trades on the platform.
Binance: the One-Stop Crypto Shop
As part of the exchange’s bid to maintain its preeminent status in the cryptoeconomy, Binance announced earlier this month that it was also preparing to launch a cryptocurrency futures service, with futures being a mainstream financial instrument used to speculate on the prices of assets. Confirming the imminent status of a new futures interface, CEO Zhao confirmed at the Asia Blockchain Summit in Taiwan that cryptocurrency futures were all but ready to be greenlighted for
“Binance will be launching a futures platform very soon. I don’t have the exact date yet. The simulation test version will be live in a few weeks.”
Will Binance Join the Libra Foundation?
Representatives of the Gemini cryptocurrency exchange may join the Libra Association, exchange founders Cameron and Tyler Winklevoss noted earlier this week. And there’s been chatter that a representative for the Ethereum community should join the fledgling body. This month, the company’s chief strategy officer Gin Chao commented that the exchange had explored joining the Libra Association, though the matter was still up in the air. He said: “We’re definitely considering it. And so, we would like to throw our hat in the ring. Whether or not we will become one, we’ll see.”
Article Produced By
William M. Peaster
William M. Peaster is an editor and cryptocurrency writer. He is not a financial adviser. He enjoys covering both the promise and warts of the emerging cryptoeconomy.