Binance burned $390M worth of BNB tokens in 16th quarterly token burn event
The biggest cryptocurrency exchange Binance has completed its 16th quarterly Binance Coin (BNB) burn, destroying over $390 million worth of tokens.
The exchange reported that it has burned 1,296,728 BNB tokens valued at approximately $393 million at the time.
An additional 5,163 BNB were destroyed through its Pioneer Burn Program — an incentive that aims to help users who have lost tokens sent mistakenly to smart contracts. The exchange covers the losses, returning the tokens to users under specific circumstances. These token numbers are then deducted from the quarterly burn totals by the exchange.
Binance has pledged to burn 20% of the exchange’s profits every quarter, with the latest burn, it is expected that the exchange could have profited by $2 billion during the second quarter of 2021.
The 16th quarterly burn is the second-largest in token's history by fiat value, with a whopping $600 million worth BNB having been destroyed back in March.
Despite the scale of the burn, the event appears to have had little impact on the Binance Coin markets, with the token prices trending sideways over the weekend.
Binance, the biggest cryptocurrency exchange, has recently been battling regulators on multiple fronts, with significant regulatory pressure coming from the United Kingdom, Germany and Hong Kong.
A number of high street banks in the U.K. have also curtailed their customers from transacting with the exchange as the country’s financial regulator clamps down on unregulated cryptocurrency trading platforms.