BINANCE ANNOUNCE LATEST COIN BURN. Since their launch on 14th July 2017, Binance has grown into one of, if not the fastest ever growing company on earth. In an effort to make their coins more valuable over time, Binance schedule quarterly coin burns where 20% of the profit is used to buy back and get rid of Binance Coin, reducing the supply which in theory should make the currency more valuable. This article will explore past and future upcoming Binance Coin burn dates and amounts.
Already they’re the busiest and most profitable cryptocurrency exchange online! Since Bittrex suspended new user accounts, as well as other exchanges due to excess demand, Binance has seemingly been the exchange of choice.
The latest binance coin burn has been announced on 17th July, 2018. As their 4th quarter Binance coin burn they will be burning 2,528,767 BNB (roughly $30MM USD) which will be executed before 19th July, 2018.
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Why is the Binance Coin (BNB) burn & the exchange getting so much attention?
One of the reasons it’s become so popular and has continued to grow so quickly is the ease in which users can make an account. There’s no messing about with ID verification or anything like that, providing you do not exceed a 2 Bitcoin per day withdrawal limit. If you want to withdraw more, you can fully verify your account, but for new users looking to start small, you can get started in just minutes!
Another unique feature about Binance is the fact they have their own cryptocurrency, Binance Coin. Holders of Binance Coin are entitled to a 50% reduction in fees which provides an incentive for users to buy and hold it.
Soon, Binance Coin will run on it’s own, custom built blockchain known as Binance Chain. Binance recently announced they’re beginning the development of Binance Chain.
What is the Binance Coin Burn?
The Binance Coin burn is Binance’s way of making the cryptocurrency more valuable. As laid out in the whitepaper, Binance Coin will burn a set amount of the Coins every quarter, depending on the profits made by the exchange.
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.
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First Binance Coin Burn Date
Since Binance has risen to success so quickly, the exchange turned a profit it’s first quarter. The first ever Binance Coin burn amount was announced on the 15th October 2017, 3 months and 1 day after launch. The Burn happened on the 18th October.
Burning Coins every quarter means that every 3 months the supply of Binance Coin will reduce as a result of the burn until 50,000,000 (half of the total 100,000,000 created) have been bought back.
The first Binance coin burn saw 986,000 BNB coins burned.
Next Binance Coin burn dates
Since the first one, Binance have stuck strictly to these time frames. Although there’s nowhere officially on their website with any planned future coin burn dates, we can be fairly confident they will follow what they’ve been doing so far and do the burn exactly every quarter.
After the October burn, the next one happened in January 2018. Again the amount was announced on the 15th and the burn happened on the 18th. The second BNB burn got rid of 1,821,586 BNB, indicating a healthy growth in profits for Quarter 2.
There has so far there have been 3 coin burns, and the next one, if Binance stay true to form, will be announced on 15th July 2018, with the burn again happening on the 18th.
Of course we have no way of proving this as Binance haven’t officially announced this is true, but we are fairly certain as this is the end of their 4th quarter.
The next Binance Coin burn date is coming up soon!
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Future Binance Coin burn dates for the next 2 years (we think):
18th October 2018
18th January 2019
18th April 2018
18th July 2019
18th October 2019
18th April 2020
If Binance continues growing at the rate it is, they could well have burned off all the Binance Coin before the end of 2019!
How did the markets react to previous Binance Coin burns?
Take a look at the below chart which shows how the price reacted during the first and second Binance Coin burns:
As you can see, there the past Binance Coins burns do not seem to have had much of a direct or immediate impact on the market. Following the second BNB burn, the price spiked over the next couple of days, before falling over 60% until it consolodated around the $10 mark.
The next Binance Coin burn will be interesting. As Binance has become even more popular and the profits will have increased by even more, we’re anticipating an even larger amount of BNB to be burned this time around.
The more BNB that is burned, the greater the effect will be on the market price. Keep an eye on BNB over the next couple of days, it will certainly be interesting to see, depending upon the amount the announce on the 15th April.