One of the world’s largest cryptocurrency exchanges, Binance, has completed its sixth coin burn, destroying Binance Coins worth $9.4 million. According to the company, the process ran smoothly without major issues.
Binance issues its own digital asset on its platform, the Binance Coin (BNB). Since its launch last year, BNB has increased significantly in value despite the current bear market. Binance is committed to quarterly burns of a portion of circulating BNB to help support the token’s long-term value and return value to loyal users of the exchange. The most recent coin burn covers the period from October 1, 2018, through December 31, 2018.
In the previous coin burn, 1,643,986 BNB were destroyed; this time, 1,623,818 BNB were burned. Because many cryptocurrency prices have fallen — including BNB’s — the total value of the latest burn amounts to $9.4 million, compared with $17 million for the previous period. Despite the downward trend, CEO Changpeng Zhao emphasized that the crypto market evolves and that focusing solely on short-term price movements is of limited use (paraphrased):
I hope the market doesn’t get too negatively impacted this year, but you never know. I believe that in the long run, builders win. People who keep working hard day after day to create value — in bull markets and in bear markets — will ultimately win. That’s our focus; it’s long-term.
He added that Binance has not carried out layoffs to date and that he looks forward to the near future. New ways to invest directly in cryptocurrencies will open important markets in Europe and Asia, contributing to global adoption of digital assets. He expressed particular optimism about the development of the Binance decentralized exchange DEX. His optimism is not solely about increased profits for Binance, but about raising awareness of Binance Coin and its role as a useful trading tool on the exchange. Over the long term, everyone who interacts with the Binance Chain — including BNB holders — stands to benefit.