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Binance CEO: BNB no longer reliant on reducing supply to increase value

Biraajmaan Tamuly

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Binance
Source: Unsplash

Today, Binance exchange announced that they had completed their 9th quarterly BNB token burn in accordance with the token’s whitepaper. Over 2 million BNB worth around $36.7 million was burnt during this process.

This is the second-largest burn of BNB tokens in terms of U.S. dollar value, trailing only behind their 2nd quarterly burn of 1.8 million BNB worth over $40.3 million at the time. Their 7th and 8th burns had accounted for only around 0.4% of the total supply, compared to 1.1% this time around.

In a blog post on their website, Binance CEO, Changpeng Zhao (CZ) expressed his thoughts on the burn and the BNB token’s performance over the 3rd quarter of 2019.

“This number represents significant growth over the last quarter. Key contributing factors to this growth include new services like Margin trading, an increased number of fiat on-ramps to make purchasing cryptocurrencies more accessible, and a multitude of other services we introduced that are beginning to bear fruit.”

CZ went on to say that the contributions from their newly launched Futures trading platform are likely to kick in during Q4 this year. He also said that BNB has outgrown its dependence on reducing supply to increase value and that most of BNB’s value comes from its utility. The Binance CEO further clarified that they do not buy back BNB tokens to conduct burns.

“We believe this does not, in fact, achieve anything; it only indicates that those platforms are not holding their own tokens. They probably sell their tokens the minute they receive them. Would you want to hold their tokens when the platforms don’t hold it themselves?”

The post also detailed how Binance Futures has already recorded higher volumes than their spot market and is now ranked 2nd in terms of trading volume for crypto futures exchanges despite having launched just last month.

CZ also talked about how BUSD is accepted by the Bermuda government for payment of government taxes and plans to increase the number of BUSD trading pairs on the Binance.com, Margin, Futures, and Binance DEX in the future.

“I know for a fact that the long-term winners are the people who build products that other people use, and we intend to continue to do that furiously.”

Biraajmaan is a full-time journalist at AMBCrypto covering the US market. A graduate in Automobile engineering, he writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.