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How the $30 Million Coin Burn Affects Binance Coin (BNB)

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The world of Cryptocurrencies and the technology behind itis still intriguing investors and traders around the world, as blockchain technology is still not fully understood by the masses. Among the different terminology that we come across, a token burn is a common occurrence. Crypto companies may decide to burn some of their own tokens from the circulating supply for various reasons. This is known as Coin Burning or token burning event. It has been previously conducted by several token developers, primarily as a tool to increase demand.

The Impacts of a Coin Burn:

Similar to the stock market where a company decides to buy back some its own shares, cryptocurrencies can essentially burn some of their own tokens to lower circulation in the market. As a result, it promotes exclusivity, thereby raising the value of the coin in question.

To further explain the impact on price, let’s take an example of a company “X”. Company X decides to perform a coin burn for 50% of its existing token supply. (Example: 1000) priced at $5 each. As a result of the coin burn, the existing supply is reduced to exactly half (500) which make it 50% more valuable, increasing the price per coin to $10. Hence a coin burn is an advantage of big stake token holders.

The Effect of the Binance Coin Burn:

Binance declared earlier in their whitepaper that they were about to conduct a $30 million BNB token burn event which was completed in due course. However, it did not seem to impact the price too much, as the BNB token was still trading at a -2% on 15th April, valued at a high of $13.84 USD. The token burn generally was for increasing demand for a coin, and although BNB experienced a slight increase in the days leading up to the event, the coin was still trading at a negative despite the burn.

Analysts have argued that a mix of different factors impacted investor sentiment towards the coin. One of the major news was the September decision when Binance moved out their servers and headquarters to Japan from China. The decision was taken after increased fears regarding the Chinese government’s negative stance on cryptocurrency trading and exchanges. The rise and fall of value are quite similar to what happened on January 15th, when a coin burn of 1,821,586 BNB was conducted. The value peaked monumental levels and reached $22.95 at one point before a disappointing slump to $11.14 within the span of a two day period.

Binance as an exchange has enjoyed dominance for most of its lifetime in the crypto space and is still ranked first in terms of trading volume. It is currently up to roughly $1.5 Billion in trades at the moment and the numbers look impressive for quite a recent exchange. Currently, the Binance Coin is trading at $12.32, at a negative of -0.65% at the time of writing (17-4-18).

Final Thoughts

At a time when the cryptocurrency market is experiencing a storm and sentiments are low, it is important for the Binance team to solidify their goals and work towards them. In fact, reports indicate that many exchanges have considered closing operations with Japan’s Kraken Exchange shutting down citing rising costs as the reason. Although trend lines this time around aren’t looking as encouraging this time around, Binance still dominates the crypto space as a community-driven exchange. This is further encouraged by the discounts offered on BNB token usage on the platform, as discussed in detail in their whitepaper. Overall, many tokens and exchanges may struggle for months to come, but Binance’s position is predicted to remain strong for a sustainable period of time.

We will be updating our subscribers as soon as we know more. For the latest on BNB, sign up for our Telegram!

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 Hellcanwait via Flickr

Blogs

TRON Partnership Involves Cloud Computing

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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.

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.

Baidu to…

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Bitcoin

Will Ripple (XRP) advocacy hike affect bitcoin dominance of China?

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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…

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Altcoins

Ravencoin (RVN) Surges Following Binance Listing

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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.

About Ravencoin

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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