- Binance incinerates nearly $500 million worth of BNB tokens, marking its latest quarterly burn.
- Despite the massive burn, BNB’s price response remains weak amidst a swirl of red flags.
In a recent announcement, Binance, a preeminent player in the cryptocurrency exchange industry, declared the culmination of its scheduled quarterly burn of BNB tokens. The exchange incinerated an eye-popping 1.99 million BNB, roughly translating to $480 million in monetary value. To date, Binance’s token burning endeavour has seen a staggering 48.14 million BNB (over $11.6 billion at current valuations) taken out of circulation.
Earlier today, #Binance completed the 24th quarterly #BNB token burn of 1,991,854 BNB through BNB Auto-Burn.
Not sure what the BNB Auto-Burn is?
Give this a read 👇 https://t.co/C5wlki9Lmb
— Binance (@binance) July 19, 2023
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BNB Price Woes: A Problematic Puzzle
Despite this considerable elimination of tokens, BNB’s price displayed an underwhelming reaction. Currently, BNB trades at a critical juncture of $241 per token. This level presents a significant support zone; a breach could mean a free-fall towards the grim $50 per BNB territory.
The tepid behaviour of Binance’s native token raises eyebrows. For comparison, the cryptocurrency market recently responded swiftly to news about the legal status of XRP; Cardano (ADA), facing its own SEC issues, saw an impressive 20% jump. Meanwhile, BNB logged a minor 5% increase before succumbing to a 7% decline.
Red Flags Fluttering for BNB
However, BNB’s disheartening performance in an otherwise optimistic market isn’t the only concern. Recent developments—legal confrontations with regulatory bodies like the SEC and DoJ, significant workforce reductions, top-level executive departures, and Binance US’s operational challenges—have amplified apprehensions surrounding BNB.
Believers in the theory that market prices invariably reflect all available information might find BNB’s current valuation troubling. As days go by, BNB’s price trajectory appears more inclined towards revisiting the lows of 2021 rather than scaling new heights.
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