Connect with us

Blogs

BinanceCoin (BNB) Is Preparing Its Quarterly Burn

Published

on

BinanceCoin
READ LATER - DOWNLOAD THIS POST AS PDF

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

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

Published

on

Bitcoin crash
READ LATER - DOWNLOAD THIS POST AS PDF

The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

Continue Reading

Altcoins

Top 3 Coins to Buy Before They Go Big

Published

on

coins
READ LATER - DOWNLOAD THIS POST AS PDF

Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

Continue Reading

Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

Published

on

crypto credit cards
READ LATER - DOWNLOAD THIS POST AS PDF

It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

Continue Reading

Elite