Bitcoin, Crypto currency, Blockchain

Binance Coin Burn is: A Chance for profits?

The Binance Coin (BNB) was one of the last few months, considered to be one of the winners of the crypto-market. Now, the next NBB Coin Burn. Already a two-Time Binance a Coin Burn, in a certain part of the circulation of the Coins was destroyed.

The Binance Coin is one of the Top performers of the last few weeks and is now a very popular crypto currency within the crypto-Community. As the Binance Coin was released last year, spent 200 million BNB (Total Supply). At the same time Binance has committed, half of this amount (100 million BNB) in the course of time “buy back”. The initial amount served to procure for capital to the company. Due to the Binance has to do this every quarter, be obligated to use 20% of the company’s profit, in order for BNB to repurchase and to destroy, until only 50% of the initial BNB are in circulation.

It is important to know that these so-called “Coin Burns” will not be announced in advance, but only in retrospect.

In the past, there were already two Coin Burns. During the First 986.000 BNB were taken, the Second a further 1.8 million BNB from the circulation. Since the last Coin Burn on 15. January 2018 has taken place, it is expected that the next Coin Burn, for the 2. Quarter of 2018, in the next few days (around the 15th. April).

A entstprechennde intimation was made, at least on Twitter:

This Binance, however, will be covered in terms of a specific date, and only then, will soon be a Coinburn.

Why is the Binance Coin Burn so interesting?

Binance is intended to use the Coin Burn the price for a BNB due to the decrease in Supply to drive up. Due to the continuous destruction of the Coins, the amount of the circulation of the Binance Coins is reduced.

As one of the basic principles of Economics says, increases the price of a Good when the demand exceeds the supply. The less in circulation, the BNB is thus created a shortage of supply, which should lead in the long run to an increase in the price or in the theory will lead. Binance considered the Coin to Burn, therefore, as a disclosure of the profits of the company to the investors who have supported by purchasing the Coins on the exchange.

In the last few days, even a small increase in trade volumes was observed. The trading volumes from the Binance Coin has risen from about 87 million to $ 124 million. The NBB rate followed the market trend and the 10 Euro mark was able to break again.

In summary that the investment in the Binance Coin is the possibility of a steady increase through the creation of an artificial shortage of supply, the Coin Burn to benefit.

In addition, Binance has Recently announced to develop a decentralized Exchange (DEX), to the NBB a further purpose could get.

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