BNB burn

Binance BNB Burn event: plans to burn coins worth $1 Billion, How will it affect the price?

BNB Burn 16th quarterly event is going to happen from July 15 to July 18. The Binance founder, Changpeng Zhao announced this via his Twitter handle.

The BNB Burn binance’s event  takes place quarterly in which binance using its profits buys back BNB coin and destroys it. The address of burning is known to everyone but no one has access to that address and that’s how the burning of any coin works. The binance previous white paper was changed and the new one says that the binance will burn 50% of the total BNB supply. The BNB burn will almost 1 billion coins in these events and BnB has total supply of 2 billion coins.

It is a common myth that by burning the coins, the price of the coin gets a boost in prices. Is it really how it works? If we see the historical data of these BNB burn  events amazing facts will come to our knowledge. We will come to know that if the bitcoin trend is upward or downward at the time of burning then the coin burned will move in that direction. The prices of these coins are not independent but correlated with the price of bitcoin. During the 15th BNB Burn event, the price of bitcoin was downward so BNB prices also dropped.

BNB burn
Source: Tradingview.com

In my opinion, you should avoid such events because if you went bullish on BNB burn event and Bitcoin is in a downtrend then your portfolio can become lesser in size.

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About mnmansha

MN Mansha is a cryptocurrency expert, trader, and content writer with extensive experience in covering everything related to digital assets — from price analysis to Blockchain disruption. Mansha authored 100+ stories for NewsBSC.com and other fintech media outlets and he's actively writing more every day. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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2 comments

  1. Acha mashwara he events ko avoid krein or portfolio bhi na dekhein cz it can hurt 😂

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