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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

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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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…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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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…

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Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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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,…

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