Binance “burned” 1.2 million BNB worth $ 390 million

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Cryptocurrency exchange Binance completed the sixteenth quarterly “burn” of 1,296,728 BNB worth about $ 390 million. 5,163 BNB were destroyed as part of the Pioneer Burn program.

According to Binance, 1,296,728 BNB were destroyed as part of the planned sixteenth quarterly token burn. The total value of the burned coins exceeds $ 390 million. At the same time, 5,163 BNB were destroyed as part of the Pioneer Burn exchange program – incentive systems aimed at helping users who have lost crypto assets due to erroneous transactions with smart contracts.

Binance covers losses by returning coins to users under certain circumstances. These BNBs are then written off by the exchange as part of the quarterly burns. Binance has pledged to burn 20% of the exchange’s profits every quarter, with the latest data suggesting the site could have made $ 2 billion in profits in the second quarter of 2021.

The latest destruction was the second largest in Binance history in terms of fiat money, with about $ 600 million worth of BNB destroyed at the time of the burn in March. In the third quarter of last year, Binance “burned” 2.2 million BNB worth $ 68 million.

Despite the scale of the latest BNB destruction, the event did not have much of an impact on the Binance Coin markets as the price of the crypto asset was in a sideways trend over the weekend. According to CoinMarketCap, on July 19, as of the first half of the day, BNB is trading at $ 298, showing a 2.2% decline per day.

At the end of last week, Binance announced the termination of trading in share tokens, without specifying the reason for this decision. Most likely, this is due to pressure from regulatory bodies – at the end of June, the UK FCA banned the exchange from providing some of the services.

Around the same time as the FCA, the Japan Financial Services Agency (FSA) issued a warning that Binance operates in the country without a license and does not have regulatory approval to operate in Japan. Earlier this month, Thailand’s SEC accused Binance of illegal transactions, the Cayman Islands regulator announced that the exchange did not have a license, and Polish and Italian regulators warned against trading on the site.

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