The controversial cryptocurrency exchange Binance says it has just burned 1.335 million BNB tokens, effectively taking out of circulation the equivalent of US$ 639.4 million.
The move is part of Binance’s commitment to use profits to buy-back and burn BNBs on a quarterly basis. The plan is to continue with this process every quarter until 50% of the crypto’s issued tokens are burned, helping generate scarcity which may help increase the crypto’s worth.
Binance has been dominating the headlines recently due to regulatory issues, with some or all of its services blocked by regulators in several countries, especially in Europe, over compliance concerns.
"“Despite the considerable attention being given by regulators to Binance, its crypto, the BNB, seems to be evolving well and there is no doubt that the most recent buy-back and burn will help increase confidence. The concept is not strange to us, as we are also buying back and burning D¥NS tokens to generate scarcity. But Binance still has a long way to go when it comes to dealing with the concerns raised by regulators about its compliance culture”, commented Eduardo Carvalho, the founder and CEO of Dynasty Global Investments AG."
In the announcement of the latest buy-back and burn, Binance CEO Changpeng Zhao acknowledged the need for regulation and said that, given its market position, the company is often seen by regulators as a by-word for cryptocurrencies. Changpeng also stated that regulation was important to help make people more comfortable with cryptos, by having platforms licenced by governments.