Binance, a global cryptocurrency exchange, has “burned” over a million tokens of its own cryptocurrency, BNB. The financial worth of these burnt tokens is estimated to be about $640 million (roughly Rs. 4,795 crores). To put things in perspective, “burning” crypto tokens is removing them from circulation in order to limit price inflation or get rid of unsold units. Binance has now burned tokens for the 17th time since its initial burn in October 2017.
Binance has burnt a total of BNB 1,335,888 tokens, each of which is now selling at $491.04 a unit, according to the official announcement (roughly Rs. 36,794).
“We’ve burned 1,335,888 BNB (approximately $639,462,868 equivalent) in our 17th quarterly BNB token burn. According to the exchange’s official announcement, “the last quarterly burn included the actual burning of 1,318,049 BNB, plus an extra 17,839 BNB that was effectively burnt via the Pioneer Burn Program.”
When crypto tokens are “effectively burned,” a portion of the money is transferred to an “eater address,” also known as a “black hole,” whose private key is not accessible to anybody, according to a Medium post. Tokens that were nearly lost after being transferred to defunct wallet addresses are now practically gone according to Binance’s “Pioneer Burn Program.”
The number of BNB tokens burned in this 17th burn is more than the previous burn, which destroyed 1,296,728 tokens.
The current market capitalization of the BNB token has increased significantly, bringing the overall capitalization of the BNB token to over $80 billion (approximately Rs. 5,99,928 crores) today, explaining the historic dollar worth of the destroyed tokens.
The active BNB circulating supply, according to CoinGecko, is 168,137,035.
According to current data, the crypto sector is rapidly expanding throughout the world.
According to cryptocurrency tracker CoinMarketCap, the total market capitalization of all cryptocurrencies has surpassed $2.5 trillion (approximately Rs. 1,87,42,625 crores). The total crypto market has increased by 233 percent since the beginning of this year.