Binance burned 1.6 million of their tokens, but the price went down. What’s wrong?

In the official press release of 17 October Binance announced that for the fifth time successfully destroyed its own coins. Despite the reduction in the total supply BNB, price of tokens came down. According to Wallpaper, they will be destroyed 100 million BNB, and the same shall remain in circulation. By the way, if you do not understand the meaning of burning cryptocurrency, read this useful article. Mainly doing this to increase the value of the tokens, because the less you have, the higher the demand.

BNB continues to fall

Thus in response to the burning rate of the token fell. According to CoinMarketCap, the last day the coin fell 2 percent and now stands at $ 9.87. The current price movement BNB repeats April the situation when the token is lost after the destruction of the next party.

This attracted the attention of one cryptocurrency trader and analyst BambouClub. He noted that trade on BNB and was so worthless and down.

The trader also said that Binance raised the fee for the transaction by 50 percent. Probably due to the fact that in July a discount on the transaction at the BNB was reduced to 25 percent. Before that it was 50.

What they say in Binance?

Each quarter we will redeem the tokens BNB 20 percent of the total profits of the company. And will continue to do this until you destroy half of all tokens. Transactions will be recorded in the blockchain.

Fifth, the procedure of burning affected much less tokens compared to the previous. This time burned 1 643 986 coins of BNB, equivalent to 17 million dollars.

Binance buys his coins and destroys them to increase the value of the remaining coins in the long run. However, you can fix, except that the price reduction BNB 20 percent over the past three months.

Information prepared in Bitcoinist. Look for more information in cryptodata.

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