In a Twitter post, CEO Changpeng Zhao stated that the Binance exchange team would burn all the allocated BNB tokens. The exchange team was allocated 40% of the total BNB minted during 2017. Calculating almost 80 million BNB, equivalent to almost $37 Billion, and will be burned instead of selling at a profit.
Binance Team Plans to Burn Allocated Tokens
The first initial coin offering (ICO) of 100 million BNB was completed by the Crypto Exchange Binance on 21 July 2017. All the BNB tokens were created before the ICOs and were sold within a 20 days period.
According to the data, BNB was trading at $474, which has dropped by 10.20% over the last 24 hours.
The announcement by Binance follows the launch of a blockchain network exchange. The network aims to compete with Ethereum for a share of the decentralized finance.
The statement from Binance reads, “It’s used on multiple DeFi platforms built on BSC that provide financial payments solutions. With the growth of BSC, more people are using BNB, and the more utility it has, the more value it gains.”
Growth in Market Value of Binance Token
In Q1 2021, Binance recorded growth of 260% and 346% in traded volume and users respectively, while the total market value of cryptocurrencies recently surpassed $2 trillion. This indicates accelerated crypto adoption by everyone around the world, from casually engaged individuals who trade every now and then to institutions that keep crypto in their treasuries and even engage in using crypto for their operations.
“People always told me BNB was undervalued, and I, of course, always biasedly agreed with their opinions. But I might never know how much undervaluation there is for BNB, or the entire crypto industry, for that matter. Given that, the numbers I stated earlier for BSC would provide some insight on that.” said Binance CEO. “I want to make it clear that we are very aware of this issue. It’s our number one priority. We have an aggressive roadmap for improving all parts of our customer support process,” he added.
Undeniably, the decentralized finance sector has surged in the last few months, and the industry will boost the BNB tokens further.