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MrSpasybo

Impact of the event Binance burned $600M in BNB

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Binance Coin (BNB) saw its 15th burn to date on Friday. According to on-chain data, Binance burned nearly $600 million worth of BNB tokens.

Historically, Binance has burned around 20% of the exchange’s profits. But in the last burn, Binance burned much more than 20%, and the exact percentage of the burn remains uncertain.

Sourse: Record $600M BNB burn suggests Binance made $750M in profit in Q1

 

It is normal for Binance to burn BNB on a quarterly basis, but when they increased the token burn rate from 20% to 80% at this time, it caused me much confusion.


+ Is Binance looking to push BNB price higher to quickly reach the capitalization of ETH?
+ Is this a way for Binance to promote the BSC exchange and ecosystem in the context of Ethereum congestion and Cardano is not ready to serve smart contracts?
+ Is this a stepping stone for Binance to get the attention before entering the stock market like Coinbase?

 

According to BNB/BTC chart, BNB price only goes through wave 3 in a short cycle. I believe this event will bring BNB price to 0.0155 BTC after the minor correction is over.

 

If4TBsPo.png

 

What do you think about this issue? Is everything just a coincidence when CZ decided to burn more than 1M BNB instead of 250K BNB? And can BNB price reach 0.0155 BTC soon?

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There is no doubt that the price of the BNB will surge after this burning too. In the past after every burning there seems a time for the consoldiation or small correction and after that BNB doesnot listen to anyone. And this burning is even bigger, if anyone is holding the BNB then sure we need to hold our bags,( Not a financial advice btw)😧. If we look at the CZ deeds, He is leading the Binance project with the full potential and to overcome the ETH rank, I amnot sure he will succeed or not but the ongoing burning looks significant. Last time the price pumped from like 40$ to straight 300$ and this time the burn is even bigger. Sure the moves of BNB in few weeks will be really higher. I am just holding my BNB tight.

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NOTHING I SAY IS FINANCIAL ADVICE. YOU SHOULD USE YOUR MIND ,FOR YOUR MONEY,

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10 hours ago, Ridam said:

There is no doubt that the price of the BNB will surge after this burning too. In the past after every burning there seems a time for the consoldiation or small correction and after that BNB doesnot listen to anyone. And this burning is even bigger, if anyone is holding the BNB then sure we need to hold our bags,( Not a financial advice btw)😧. If we look at the CZ deeds, He is leading the Binance project with the full potential and to overcome the ETH rank, I amnot sure he will succeed or not but the ongoing burning looks significant. Last time the price pumped from like 40$ to straight 300$ and this time the burn is even bigger. Sure the moves of BNB in few weeks will be really higher. I am just holding my BNB tight.

@Ridam Indeed everyone is waiting for next upside price for BNB, and if that happens, BNB capitalization could be half that of ETH and make the competition more complicated and intense than ever. Unfortunately, I don't hold BNB, I only have a few USD in BNB swapped from the small assets in Binance wallet. It would be better if I used all ETH to buy BNB before, ETH price shows no sign of growth.

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10 hours ago, MrSpasybo said:

@Ridam Indeed everyone is waiting for next upside price for BNB, and if that happens, BNB capitalization could be half that of ETH and make the competition more complicated and intense than ever. Unfortunately, I don't hold BNB, I only have a few USD in BNB swapped from the small assets in Binance wallet. It would be better if I used all ETH to buy BNB before, ETH price shows no sign of growth.

Well It would be better if you try to accumulate the BNB in the dips like we saw in today isstead of cutting the ETH for BNB. ETH has a lot of room to grow and we are still in the start of long journey ahead because we have crossed the ATH only. And if we look at the ETH/BTC chart eth hasnot done any significant moves like in previous days. Just hodl and Personally I am also into the ETH and I am just enjoying the profit as I had bought the ETH around 1500 so no need to worry at least for me.

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NOTHING I SAY IS FINANCIAL ADVICE. YOU SHOULD USE YOUR MIND ,FOR YOUR MONEY,

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15 hours ago, Ridam said:

Well It would be better if you try to accumulate the BNB in the dips like we saw in today isstead of cutting the ETH for BNB. ETH has a lot of room to grow and we are still in the start of long journey ahead because we have crossed the ATH only. And if we look at the ETH/BTC chart eth hasnot done any significant moves like in previous days. Just hodl and Personally I am also into the ETH and I am just enjoying the profit as I had bought the ETH around 1500 so no need to worry at least for me.

@Ridam I am not a professional trader so it is quite difficult to read and understand TradingView's indicators, I am self-learning but obviously it takes more time and effort for my trading career. So I continue to hold ETH, even if only a few ^^
I still expect ETH's growth, but it's clear that it hasn't seen much volatility over the past several weeks. This makes me regret when I missed the opportunity with BNB & DOGE. Perhaps this is the common mentality of many people.
I am looking forward to a recovery in BNB price thanks to the coin burning event, maybe I will use ETH to buy BNB.

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On 4/16/2021 at 11:10 PM, MrSpasybo said:

Is Binance looking to push BNB price higher to quickly reach the capitalization of ETH?

Exactly, I am thinking so. Recently BNB managed to be at the third spot after Bitcoin and Ethereum. Total marketcap for BNB is also increasing and its an indication, it is heading to spot the 2nd spot in the CMC list. 

On 4/16/2021 at 11:10 PM, MrSpasybo said:

Is this a way for Binance to promote the BSC exchange and ecosystem in the context of Ethereum congestion and Cardano is not ready to serve smart contracts?

Exactly. As the usecase of BNB is increasing due to the Binance Chain and another parallel chain BSC( powered by EVM ) based DeFi activities, it can be the smart ideas to attract the users towards BSC based platforms. Increasing price in BNB may serve as the delicious ice-cream to the investors 😀

On 4/16/2021 at 11:10 PM, MrSpasybo said:

Is this a stepping stone for Binance to get the attention before entering the stock market like Coinbase?

It depends on their further strategies, CZ can do anything ! 

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I think it is just a way to making their coin profitable so that people get interested to invest on it, it is a promotion and a competition.

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On 4/20/2021 at 8:00 AM, Whited35 said:

Exactly, I am thinking so. Recently BNB managed to be at the third spot after Bitcoin and Ethereum. Total marketcap for BNB is also increasing and its an indication, it is heading to spot the 2nd spot in the CMC list. 

Exactly. As the usecase of BNB is increasing due to the Binance Chain and another parallel chain BSC( powered by EVM ) based DeFi activities, it can be the smart ideas to attract the users towards BSC based platforms. Increasing price in BNB may serve as the delicious ice-cream to the investors 😀

It depends on their further strategies, CZ can do anything ! 

@Whited35 All of this reminds me of CZ's previous statement: BSC was not born to compete with Ethereum. That's right, BSC wants to replace Ethereum ^^
We have seen the impact of the BNB burning event from Binance, more information about CZ wanting to burn more tokens from Binance's founding members, the BNB price has made added peaked as soon as people thought the BNB price would have strong correction after quick increase.
19XLtLQs.png

 

11 hours ago, selfmade said:

I think it is just a way to making their coin profitable so that people get interested to invest on it, it is a promotion and a competition.

@selfmade Yeah, we all understand the purpose of burning tokens. But in this case, as Binance overheats the token burning, we will realize its many other purposes besides reducing supply.

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11 hours ago, MrSpasybo said:

@Whited35 All of this reminds me of CZ's previous statement: BSC was not born to compete with Ethereum. That's right, BSC wants to replace Ethereum ^^

Lol, maybe yeah but in reality its really, its really a tough task for BNB to book the second spot after replacing the giant ETH which is approaching towards the another era  of PoS. 

11 hours ago, MrSpasybo said:

We have seen the impact of the BNB burning event from Binance, more information about CZ wanting to burn more tokens from Binance's founding members, the BNB price has made added peaked as soon as people thought the BNB price would have strong correction after quick increase.

I'm pretty much sure, recent burning of BNB might inspire BNB to reach another milestone of $2K mark in the cryptocurrency markets so it will be interesting see the upcoming interesting moments 😁

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Maybe with this big event Binance managed to support price of BNB. When everything drops by 20% weekly, BNB only falls by 8%. This means that if the trend becomes very bullish again BNB will give a lot more profit. It has done so much that I am impressed with the price of this crypto.

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11 hours ago, Whited35 said:

Lol, maybe yeah but in reality its really, its really a tough task for BNB to book the second spot after replacing the giant ETH which is approaching towards the another era  of PoS. 

I'm pretty much sure, recent burning of BNB might inspire BNB to reach another milestone of $2K mark in the cryptocurrency markets so it will be interesting see the upcoming interesting moments 😁

@Whited35 The potential of BNB is huge, especially when the ETH price is growing strongly, creating more motivation for BNB price increase because the value of use of BSC is now greater than that of Ethereum.
Now I think BNB can x10 on BTC and reach 0.018 BTC ~ 1600 USD (not only 0.0155 BTC)during this bullrun. And we can see a new closer price level ~ 0.014 BTC


eDZKzKis.png

 

5 hours ago, Mella said:

Maybe with this big event Binance managed to support price of BNB. When everything drops by 20% weekly, BNB only falls by 8%. This means that if the trend becomes very bullish again BNB will give a lot more profit. It has done so much that I am impressed with the price of this crypto.

@Mella I agree with this,I thought that BNB price will decrease to Fibo 0.5-0.382-0.236 and then lessen back up, but surprisingly, the BNB price just hit Fibo 0.618 (~ 0.008 BTC) and then bounced back in the race with ETH.
It is clear that the token burning event has a very positive effect on BNB price.

Edited by MrSpasybo
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42 minutes ago, vienna delanteraa said:

It is clear that after every currency burn, BNB rises in value and there is nothing to be afraid of like a future crash or the like, but in my opinion there is a long way for BNB to be able to overperform ETH

By the way I have heard that ethereum is also burning coins, so if BNB wants to compete Ethereum by burning coins, it is not gonna work. https://decrypt.co/52157/ethereum-developer-we-are-going-to-burn-a-lot-of-eth

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13 hours ago, MrSpasybo said:

@Whited35 The potential of BNB is huge, especially when the ETH price is growing strongly, creating more motivation for BNB price increase because the value of use of BSC is now greater than that of Ethereum.

BNB/ETH price strength also does matter here. As the less BNB supply is there for the different purposes which are based on the Binance Chain and Binance Smart Chain, BNB price can be sky rocketing in future, IMHO. 

13 hours ago, MrSpasybo said:

Now I think BNB can x10 on BTC and reach 0.018 BTC ~ 1600 USD (not only 0.0155 BTC)during this bullrun. And we can see a new closer price level ~ 0.014 BTC

My expectation is  even higher than this o I am still keeping BNB safe inside my non custodial wallet. I am not even taking the risks by placing the sell order of BNB to perform trade on the exchange 😂

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On 4/16/2021 at 8:25 PM, MrSpasybo said:

Binance Coin (BNB) saw its 15th burn to date on Friday. According to on-chain data, Binance burned nearly $600 million worth of BNB tokens.

Historically, Binance has burned around 20% of the exchange’s profits. But in the last burn, Binance burned much more than 20%, and the exact percentage of the burn remains uncertain.

Sourse: Record $600M BNB burn suggests Binance made $750M in profit in Q1

 

It is normal for Binance to burn BNB on a quarterly basis, but when they increased the token burn rate from 20% to 80% at this time, it caused me much confusion.


+ Is Binance looking to push BNB price higher to quickly reach the capitalization of ETH?
+ Is this a way for Binance to promote the BSC exchange and ecosystem in the context of Ethereum congestion and Cardano is not ready to serve smart contracts?
+ Is this a stepping stone for Binance to get the attention before entering the stock market like Coinbase?

 

According to BNB/BTC chart, BNB price only goes through wave 3 in a short cycle. I believe this event will bring BNB price to 0.0155 BTC after the minor correction is over.

 

 

If4TBsPo.png

 

 

What do you think about this issue? Is everything just a coincidence when CZ decided to burn more than 1M BNB instead of 250K BNB? And can BNB price reach 0.0155 BTC soon?

So they are just burning their coins for whats main reason, they need to decrease the supply of their coins in order to increase the demand, if is for that reason, they would succeed because the BNB price is also at a massively bullish now.


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Everyone has started accumulating their balance, hoping for a rise in prices. All expectations indicate that. We hope this will happen and it will bring in a lot of profits. Good luck for everyone in that.

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22 hours ago, selfmade said:

By the way I have heard that ethereum is also burning coins, so if BNB wants to compete Ethereum by burning coins, it is not gonna work. https://decrypt.co/52157/ethereum-developer-we-are-going-to-burn-a-lot-of-eth

@selfmade EIP-1559 is how Ethereum will burn a portion of transaction fees, expected to be about 1M ETH per year, which will reduce the supply of ETH in the market and have a positive effect on ETH price.
I think this is a very normal thing, not being manipulated like the way that Binance suddenly increased the token burning rate from 20% to 80% of exchange profit.

 

9 hours ago, Whited35 said:

BNB/ETH price strength also does matter here. As the less BNB supply is there for the different purposes which are based on the Binance Chain and Binance Smart Chain, BNB price can be sky rocketing in future, IMHO. 

My expectation is  even higher than this o I am still keeping BNB safe inside my non custodial wallet. I am not even taking the risks by placing the sell order of BNB to perform trade on the exchange 😂

@Whited35 There is a method for estimating the value of tokens: based on competitor's total capitalization. For example, BSC is a competitor of Ethereum, the capitalization of BNB will tend to fluctuate according to the capitalization of ETH. The same thing happens with CAKE & UNI.
It's good that you still keep BNB, many traders have regretted using BNB to pay transaction fees ^^

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The impact of binance to be burned that's amount of money must be positive because they have decrease the supply of the coin in order for it to have a demand.

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3 hours ago, joemcgwa said:

The impact of binance to be burned that's amount of money must be positive because they have decrease the supply of the coin in order for it to have a demand.

@joemcgwa Yeah, burning coins is the most common and simplest way to reduce the supply of tokens, causing tokens to rise in price. In addition, Binance's burning of the tokens of team members also shows that they are willing to share their profits and stick with the BSC ecosystem.
However, I know that their assets will still increase thanks to the increase in BNB price & profits from Binance CEX.

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12 hours ago, MrSpasybo said:

@joemcgwa Yeah, burning coins is the most common and simplest way to reduce the supply of tokens, causing tokens to rise in price. In addition, Binance's burning of the tokens of team members also shows that they are willing to share their profits and stick with the BSC ecosystem.
However, I know that their assets will still increase thanks to the increase in BNB price & profits from Binance CEX.

Im so sad because I've just missing that Binance coin bullish after I was just selling my BNB after the price touch to 300, I was just hoping maybe it might fall the price, but after three days it was turned to $500.

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Greetings my dear friend, thank you for sharing this information with us, I hope this burning is of benefit to all virtual currency traders.

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On 4/26/2021 at 11:28 AM, joemcgwa said:

Im so sad because I've just missing that Binance coin bullish after I was just selling my BNB after the price touch to 300, I was just hoping maybe it might fall the price, but after three days it was turned to $500.

@joemcgwa It's a pity, but you should know professional traders who have spent hundreds of BNB paying transaction fees on Binance for the sake of savings. They wasted a huge amount too ^^

 

2 hours ago, selfmade said:

But on the other hand isn't that a proof of weakness, why don't they just promote their coins to increase demand instead of burning supply, does that mean they have failed to promote the coin?

@selfmade Great question, mate!
Burning tokens are usually only short-term and part of token promotion strategy. This will give the holders more motivation to keep knowing that the token price will definitely be pushed up.
Burning tokens has become very popular and Binance is doing it quite well. And I believe that Binance exchange is the best BNB promotion channel in the world when it can reach hundreds of thousands of users in the crypto industry.

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6 hours ago, selfmade said:

But on the other hand isn't that a proof of weakness, why don't they just promote their coins to increase demand instead of burning supply, does that mean they have failed to promote the coin?

maybe they have burned the coin in order to attract investors, because investors also are interested with coins with low supply, so thats why binance reduce their supply and actually its gives positive impact for BNB to rise from $271 to $637 only in a month.

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Trade on Binance future trading, spot trading, cross margin, P2P and fiat trading, also earn up to 40% referral commission, Direct Link

SIGN UP ON BINANCE

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8 hours ago, joemcgwa said:

maybe they have burned the coin in order to attract investors, because investors also are interested with coins with low supply, so thats why binance reduce their supply and actually its gives positive impact for BNB to rise from $271 to $637 only in a month.

@joemcgwa You know, Binance only burned tokens after BNB price passed 600 USD. The impact of this token burn makes BNB's price less volatile during the recent correction.
Obviously it is an effective way of advertising as the whole market is interested in Binance's token burning event when they burned up to 80% of their profits in Q1 2021.

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I'm a real user of binance wallet, and i also like the binance coins, but i don't know about the development you shared, so this will make the BNB surge in the future after this stage, so we should take advantage of this situation and get the bigger part of BNB.

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21 hours ago, Powell said:

I'm a real user of binance wallet, and i also like the binance coins, but i don't know about the development you shared, so this will make the BNB surge in the future after this stage, so we should take advantage of this situation and get the bigger part of BNB.

@Powell In fact, this is not an announcement of the development of Binance or BSC, it is only related to recent token burning event of Binance to reduce supply of BNB in market to push BNB price up. If you already own BNB, congratulations. If not, you will have to pay more money to buy BNB from market ^^

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    • Друзья, наши курс на данный момент: BTC – RUB – 5 968 800 (Не забывайте, что курсы нестабильны, точные данные можете узнать в моменте у поддержки)
    • Добрый день всем нынешним и будущим клиентам 😊 Курс по направлению: USDT – RUB – 85.3 Обменник работает в ручном режиме, 24/7. Подробности уточняйте у операторов.
    • Одно из основных преимуществ нашего сервиса обмена электронных валют - это выгодные условия обмена. У нас вы всегда найдете один из лучших курсов на рынке, что позволит вам сэкономить. Мы следим за изменениями курсов и всегда предлагаем нашим клиентам самые выгодные условия.
    • Количество пользователей Binance превысило 200 млн   Криптобиржа Binance объявила о том, что количество пользователей платформы превысило 200 млн. На то, чтобы привлечь дополнительно 100 млн клиентов, компании потребовалось более двух лет. Ситуацию прокомментировал новый CEO Binance Ричард Тенг. Он также выразил благодарность сообществу биржи.   Напомним, Binance отметила достижение 120 млн пользователей в июле 2022 года. Спустя год и один месяц аудитория биржи выросла до 150 млн человек. Тогда Чанпэн Чжао, предыдущий глава фирмы, заявил, что главным препятствием к привлечению следующих 100 млн клиентов является отсутствие эффективных решений по конвертации криптоактивов в фиат.
    • покупка биткоина фирмами за пределами криптоватного сектора уже не вызывает такого ажиотажа. но тенденция радует, все больше компаний готовы купить биток пусть даже на небольшую сумму.
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