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BinanceCoin (BNB) Is Preparing Its Quarterly Burn
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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

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Top 3 Crypto Trends That Might Go Big in Q2 2019

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So far 2019 has brought a significant change to the crypto industry. Q1 of this year has seen the rise of the idea of IEOs, the crypto space has finally managed to shake off the bears, and numerous coins throughout the industry have seen their prices grow once again.

The latest rally happened only several weeks ago, and it allowed Bitcoin to surge up by $1,000. Most other coins followed in their own way, but the investors are now wondering what to expect out of Q2? The Q1 started off badly, but it ended up being extremely successful. The chances are that history might repeat itself in the second quarter, as there are some key trends that might point the way for the further development of the crypto market.

1. The rise of IEOs

Back in 2017 and early 2018, ICOs (Initial Coin Offerings) were everything that the crypto space was talking about. Their popularity allowed startups to raise billions upon billions of dollars. Soon enough, however, that ended in a pretty bad way. STOs (Security Token Offerings) emerged as an alternative that does not depend on trust, follows regulations, and it actually holds value. However, asset tokenization might still be in its early stages, and this is something that might come back at some point in the future.

In 2019, however, IEOs (Initial Exchange Offerings) started attracting the…

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The Crypto Space Once Again Divided Over Bitcoin SV

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The crypto community is a strong one, one that managed to bring digital currencies from nothing to an industry worth hundreds of billions of dollars. However, while its strength in this regard is undeniable, the crypto community can be just as fragile given the appropriate conditions. With that in mind, the conditions seem to have been set for a new divide, although the cause is once again the same — Dr. Craig Wright and his Bitcoin SV (BSV).

Craig Wright vs. the (crypto) world

Dr. Craig Wright, the chief scientist at nChain, and the creator of Bitcoin SV. has been a well-known and very controversial figure in the crypto industry. Wright was suspected of being Bitcoin’s creator several years ago, which is possible because no one knows who is behind the name ‘Satoshi Nakamoto.’

Wright was believed to be him, and one theory claimed that he and his friend were responsible for giving life to BTC. However, the theory quickly died out, but not before Wright seemingly liked the idea of assuming the mantle of Nakamoto. He himself started claiming to be Bitcoin’s mysterious creator ever since.

Of course, he managed to gather up some followers, but the majority of the crypto community — while confused — did not believe him. Luckily, there is no need for trust, and Wright should easily be able to prove that he…

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Are XRP and Ripple Going to Be Worth Anything by the End of 2019?

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One surprise recently was when XRP took over Ethereum’s long-held second place in the Market Cap leaderboards. It quickly went back to its traditional and respectable third place behind Ethereum, but it could be a sign of things to come.

XRP has a lot of clout in the market because of the platform it is based on, which is Ripple. A coin that is used for a very specific purpose and with a long term goal in mind is always going to fare better than others. Litecoin, Bitcoin Cash and others have come about because of disagreements in Bitcoin. Therefore they offer nothing except an alternative to Bitcoin as a pure cryptocurrency, while Ripple (and XRP along with it) has something tangible behind it.

Big Banks Back Ripple

Ripple was created in 2012 for a specific reason. It aimed to become a faster and more efficient method to transfer value between banks and countries. This value can be almost anything from currencies to other instruments. While initially, banks were cautious about investing in the company, recently they have been lining up. The crypto winter has helped with innovation int he industry and Ripple has benefitted immensely for it.

The various payment solutions based on Ripple such as xRapid and xCurrent are seeing a large uptake, and this is having an amazing effect on XRP as a whole.…

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