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.
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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