BinanceCoin was issued and launched by one of the greatest cryptocurrency exchange markets in the world, Binance. As we all know BinanceCoin units are resting on Ethereum network making BNB an ERC20 type of token. BinanceCoin has been around for only a couple of months on the market by far, but this currency is doing pretty well when it comes to its performance on the market regarding its physical value. With the latest announcement from the BNB team, we have found out that another burn is about to turn BinanceCoin around, so we are interested in finding out more about the mentioned burn.
Binance Coin and Quarterly Burns
In case you weren’t following up with BinanceCoin, you have probably missed the fact that Binance is exposing BNB units to quarterly burns, which means that BNB is set to go through its burn a couple of months a year.
There is a determined number of existing BNB tokens which is 200 million units of BinanceCoin, no more or less. Each quarter, Binance have stated that they are going to use 20% of their own profit in order to buy BNB units so they would be able to pull them off the market and burn them, which means that they would be destroying the units they have bought off.
In this case, Binance will be using their own profits to buy BNB tokens. They have further stated that they will continue to use 20% of their profit every quarter until they are able to buy off 50% of the existing BNB units, which would make 100 million BinanceCoin tokens.
They are planning on keeping this process transparent while updating the public on the mentioned operation. Once the team would be able to buy of 50% of the existing coins, these 100 million units will be burnt and destroyed, which would leave only 100 million BNB tokens in circulation.
In case you are wondering why Binance is burning BNB tokens every once in a while, with the main objective of destroying 50% of the existing tokens, the answer is rather simple.
By burning a portion of the existing coins, BinanceCoin just as any other currency going through a burn will keep its market capitalization as it is for a while. On the other hand, the number of circulating coins would consequently decrease, so the value of BNB would jump up, pushing up its price on the market.
By performing quarterly BNB burns, Binance is actually keeping its token more stable, which probably explains how BNB manages to obtain a more stable pace of growth in oppose to other currencies.
The team behind this token announced the burn on the last Thursday with their official tweet, which means that we can expect the burn to occur anytime soon, probably by the end of April.
For now, we can only guess the date of the burn and the number of tokens that would be bought off as the date, time and the amount of BNB that are to be bought and burnt weren’t specified in the initial tweet. However, we can be certain that the BNB burn will happen pretty soon.
BinanceCoin and Binance
Maybe one of the top reasons for having BNB as stable as it is, growing at a pretty prompt pace of growth given the fact that this token is still very young when compared to other coins and tokens is the fact that BNB is being used for paying fees of Binance.
BNB rests on Ethereum chains as an ERC20 type of token where it is being used for cutting the fees you have to pay when dealing with cryptos on Binance. The fees for making exchanges are now cut in half.
It is said that the fees will get lower and lower with the further usage of BNB until they are significantly lowered.
BinanceCoin has seen two burns so far, one that happened in October of 2017 and the last one that took place in January 2018. Both of these burns were announced in the middle of the month and took place by the end of the month, which means that BNB will most definitely go through its third official burn at the end of April of 2018.
How is BinanceCoin doing at the Current Moment?
Ranked as the 18th-best token according to the global coin ranking list, BinanceCoin was doing pretty well when the market started to recover, but as of today we see it slightly dropping as the majority of currencies are dropping as well.
The last drop that occurred in the last 24 hours wasn’t as harsh to BNB as it only pushed it down for -1.04% against the dollar. However, BNB is still trading in the red.
After the most recent change in the market, BinanceCoin can be purchased at the price of 13.22$ per one BNB token. We’ve seen BinanceCoin at its top in the mid-January when this token marked its record price of over 24$ per one unit.
With the upcoming burn, it is possible that we will see BNB coming near its all-time high or at least breaking through the value of 13$ per one unit and going up.
We will be updating our subscribers as soon as we know more. For the latest on BNB, sign up for our free newsletter!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of abriz44 via Flickr
TRON Partnership Involves Cloud Computing
It has been almost an entire week since Justin Sun, the founder of TRON (TRX), announced a new big partnership for this cryptocurrency. His Twitter announcement did not provide a lot of information, except for the fact that the TRON partnership is with an industry giant worth tens of billions of dollars.
— Justin Sun (@justinsuntron) October 12, 2018
Even so, the entire crypto community started speculating about the new partner’s identity. Soon after the announcement, a new rumor emerged, claiming that the identity of an unnamed corporation was uncovered. According to the rumor, TRON’s new partner is none other than Baidu, one of the largest tech giants of China, which also represents this country’s largest internet search provider.
Baidu is often viewed as China’s version of Google, and if the rumors of a partnership with this company turn out to be true, this will be a big game-changer for TRON.
However, in days following the announcement, new reports started coming in with claims that the partnership will not revolve around blockchain technology. Instead, ODaily reported that the alleged partnership between TRON and Baidu will be focused on cloud computing. The report claims that TRON will be purchasing computing resources from Baidu.
Will Ripple (XRP) advocacy hike affect bitcoin dominance of China?
Currently, China is leading in Bitcoin mining industry by far, second to none for bitcoin mining power. Literally, it’s contributing over 70% of the network’s hash rate (a term that is used in describing the total processing power of a blockchain network). But how Ripple fits in here and what it has to do with that? We’ll talk about that a bit later below, let’s cover some in-depth facts about China’s dominance over Bitcoin first.
It’s a near-complete dominance by China on the BTC mining grid that has made it responsible for mining a majority of circulating bitcoins. A Beijing-based company, Bitmain Technologies, is highly responsible for extracting the significant part – more than half of the globe’s bitcoin, and alone, it has approached 50% of the total hash rate more than once.
The fact that China is controlling a majority of Bitcoin hash rate, clearly tells that it has the power of manipulating or merely destroy the bitcoin network if it gets enough support should it decide to take such a move. Therefore, this has led to serious concerns among countries including the US that China might get an edge in this cryptocurrency industry and possibly becoming a potential threat.
China is the biggest manufacturer of Bitcoin as well as cryptocurrency mining equipment. The reason behind the massive growth of mining farms in the country is because of cheap electricity bills.
Furthermore, the country has adopted several…
Ravencoin (RVN) Surges Following Binance Listing
While most cryptocurrencies today still remain unstable and at the edge of falling into the red, there are some coins that are doing significantly better. One such coin is Ravencoin (RVN), which has surged by over 26% in the last 24 hours.
Ravencoin came to be as a hard fork of Bitcoin and was inspired by a popular book series-turned-television programme, Game of Thrones. The coin’s developers decided to make Ravencoin an open-source project that provides users with the ability to declare assets on their platform. The platform itself is decentralized, transparent, and secure.
Just as Game of Thrones’ ravens are used for spreading the news and truth, Ravencoin hopes to become a carrier of truth regarding the ownership of assets on the blockchain.
Ravencoin’s main use case is for performing P2P transfers, while it prioritizes security, autonomy, user privacy, and control. Additionally, as a coin fighting for truth and transparency, it also stands against censorship.
Ravencoin got listed on Binance prior to MainNet launch
Following the last week’s announcement that Ravencoin is getting officially listed on Binance, the world’s largest cryptocurrency exchange ba trading volume, Ravencoin experienced a large price surge. At one point, the surge took the coin’s value up by over 31%. At the time of writing, however, the coin is still growing, with an increase of 26.15% in the last 24 hours.
Getting listed on Binance has brought Ravencoin to the top…
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