Binance coin would be undergoing its 14th coin burn in less than 48 hours from now.
Bitcoin had a similar event in May 2020 which contributed immensely to its price increase.
Firstly, let us examine the meaning of coin burning.
Coin burning is the process of permanently removing coins from circulation, reducing the total supply.
When the BNB was still part of the Ethereum network, Binance performed periodic Coin Burn events through the use of a smart contract function known as burn function. The BNB burning events are scheduled to take place every quarter until 100,000,000 BNB are finally destroyed, which represents 50% of the total BNB ever issued (200,000,000 BNB).
The amount of BNB coins to be burned is based on the number of trades performed on the exchange within a 3-months period. So after each quarter, Binance burns BNB according to the overall trading volume.
However, it seems that a considerable amount of people still fail to understand how Coin Burns are executed.
The world’s leading cryptocurrency exchange token by means of market capitalization, Binance Coin, is approaching its ATH. This happens hours before the company goes on with its 14th scheduled BNB token burn.
Let's take look at this chart below-showing price changes during past BNB coin burn.
Binance Coin is already trading above its all-time high currently at 46 dollars, in the next 48 hours, we could see 50-55 dollars after the scheduled coin burning.
For those holding a BNB coin, it's actually a good one, and if you are yet to buy the coin and desire to buy it, follow the process outline below.
HOW TO BUY BINANCE COIN
1. Register on Binance Exchange by clicking here
2. Deposit Naira or in your currency for the value you want to buy.
3. Click on Trade on Binance app and search for BNB/NGN or BNB/USDT
Then select the market price and buy the coin.
Good luck with your investment.
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