Binance Burns Native Tokens Worth Over $600 Million, Fetches Them Out of Circulation

Over a million units of Binance’s native tokens have been “burned” — taking around $640 million (roughly Rs. 4,795 crores) worth of crypto out of circulation.

By Radhika Parashar | Updated: 19 October 2021 14:37 IST

Binance Burns Native Tokens Worth Over $600 Million, Fetches Them Out of Circulation

Binance token called "BNB" originated in 2017

Highlights

Over a million BNB tokens have been pulled out of circulation
They amount to nearly $640 million (roughly Rs. 4,795 crores)
This is the 17th session of BNB token burn since October 2017

Global cryptocurrency exchange Binance has “burned” over one million tokens of its native coin — BNB. The financial value accounted by these burned tokens is around a whopping $640 million (roughly Rs. 4,795 crores). To put things in perspective, the process of “burning” crypto tokens essentially means taking them out of circulation in order to control the price inflation of that particular token or to get rid of the unsold units. Since its first burn in October 2017, Binance has now completed its 17th session of token burning.

As per the official announcement, Binance has burned a total of BNB 1,335,888 tokens, each unit of which is currently trading at $491.04 (roughly Rs. 36,794).

“We have completed our 17th quarterly BNB token burn of 1,335,888 BNB (roughly $639,462,868 equivalent). The latest quarterly burn includes the actual burning of 1,318,049 BNB, plus an additional 17,839 BNB that was effectively burned via the Pioneer Burn Program,” the official statement from the exchange said.

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When crypto tokens are “effectively burnt,” a portion of the coins is sent to an “eater address,” which is also referred to as a “black hole” — the private key of which is not obtainable by anyone, a report by Medium has explained. With Binance's “Pioneer Burn Program,” tokens that were practically lost after being sent to dead wallet addresses.

This 17th burn of BNB tokens is higher in figure than the BNB 1,296,728 tokens that were destroyed in the previous burn.

Presently, the BNB market cap has risen substantially, bringing the total capitalisation of the BNB token to over $80 billion (roughly Rs. 5,99,928 crores) today — explaining the historic dollar value of the destroyed tokens. As per CoinGecko, the active BNB circulating supply stands at 168,137,035.

The crypto space is witnessing a rapid global expansion, statistics have revealed recently.

The market capitalisation of all the cryptocurrencies put together has crossed a milestone of $2.5 trillion (roughly Rs. 1,87,42,625 crores) according to cryptocurrency tracker CoinMarketCap. Since the beginning of this year, the overall crypto market has grown by 233 percent.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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Further reading: Binance, Cryptocurrency, BNB, Cryptocurrency Price, BNB Price, BNB Burn

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More