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Binance burns $547m in BNB tokens – here’s how the price is now performing

By Alara Jordan

09:44, 14 October 2022

Binance token
The BNB burn protocol was introduced in December 2021 to provide “greater transparency and predictability” – Photo: Shutterstock

The cryptocurrency exchange Binance has eliminated $547m in BNB tokens in its 21st quarterly burning event, destroying a total of 2.065 million tokens and reducing the overall circulating supply of BNB.

The exchange confirmed that the total amount included 4,833.25 BNB that was burned through its Pioneer Burn Program, a system that helps users recover any lost digital assets.

Binance’s 21st quarterly burn equates to one of the biggest amounts in BNB’s burn history. 

Binance’s announced it would switch to its BNB Auto Burn protocol in December 2021 to provide “greater transparency and predictability” to its community. During its 20th quarterly burn in July, the network eliminated just shy of two million BNB tokens.

It said via a company blog post: “Going forward, the quarterly burn will be replaced with BNB Auto-Burn to provide greater transparency and predictability to the BNB Community.

XRP/USD

0.62 Price
+2.380% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.14 Price
-1.680% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BTC/USD

67,793.15 Price
-0.070% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

SOL/USD

180.04 Price
-1.860% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

“BNB Auto-Burn will be both objective and verifiable, independent of revenues generated on the Binance CEX through the use of BNB and will be automatically adjusting in that the burn amount will be based on the price of BNB, which, in turn, reflects the supply and demand for BNB, as well as the number of blocks produced during a quarter calculated on the basis of on-chain information.”

BNB to USD

BNB price performace

The binancealtcoin was trading at $274 on the morning of Friday 14 October, recording a 24-hour rise of 5.44%. BNB has been on a steady downward trend along with the rest of the crypto market on 13 October, dipping to lows of $259. 

BNB was trading around $297 at the beginning of the month, but witnessed a sharp drop in price on 6 October after its native blockchain Binance recorded a $100m hack.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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