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BinanceCoin (BNB) Is Preparing Its Quarterly Burn

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BinanceCoin
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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

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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