Binance Coin (BNB) Burn 'Completed,' Exchange Anticipates Increased Revenue

Crypto exchange Binance’s management team has announced that Binance Coin’s (BNB) 7th burn, for “the period between January 1st and March 31st, 2019,” has been completed.

The exchange operator has reportedly “burned 829,888 BNB,” an amount valued at about $15.6 million. As explained in an official blog post, published on April 16th, 2019, by Binance’s management, “the [number] of BNB [tokens] burned this quarter is about half” as many that were “burned last quarter.”

As BNB Price Increases, “Burn Rate Will Become Slower”

The post further noted that “considering BNB has more than tripled in value during these past 3 months, the USD equivalent is significantly higher than last quarter.” Binance’s blog also mentioned that “with the rise in the price of BNB, the burning rate will become slower, assuming all other [factors remain] constant.”

According to Binance, its token burn process was clearly specified in its whitepaper before BNB was launched. Moreover, the digital asset exchange firm claims it had anticipated the “dynamic effect” of the BNB token prior to its release.

Binance’s team also pointed out that BNB “began to rise before” the Bitcoin (BTC) price even began to recover. What this means is that “fewer BNB were spent on trading fees by our users, resulting in lower revenue in BNB,” the exchange’s blog explained. It added that despite lower net returns in BNB, the company’s “revenue denominated in USD” increased significantly during the same time period.

Notably, Binance’s management also believes that “with the recent rise in BTC price,” the exchange’s “revenues in USD terms” could also “make a turnaround.”

“BNB Price Rose Before BTC This Time”

Commenting further on the Bitcoin price, Binance’s team noted that the world’s most dominant cryptocurrency “began rising [in value] first” and this was followed by an increase in the prices of other cryptocurrencies. However, Binance’s management revealed that there was a noticeable shift in this pattern as “this time, the BNB price rose before BTC.”

Acknowledging that they don’t really know why the price of Binance Coin surged before Bitcoin rallied, Changpeng Zhao, the CEO of Binance, wrote: 

Our mantra has been quite simple, to keep our heads down and focus on building. We kept building all throughout 2018, and 2019. I think that’s really it. We build products that people use and we never stop trying to improve ourselves and our products. Price will eventually catch up to the value you create.

Time to Be ‘Cautious or Short' Bitcoin, Says Bollinger Bands Creator

Francisco Memoria

John Bollinger, creator of the popular technical analysis tool Bollinger Bands, has tweeted out it’s time to be “cautious or short” on the price of bitcoin, after the cryptocurrency’s price dipped below $10,000 for the third time since the so-called black Thursday.

On social media, Bollinger pointed out that bitcoin’s last move p over the $10,000 mark, which came shortly after U.S. President Donald Trump finished a speech on law and order in which he vowed to take “immediate presidential action to stop the violence” and said he was “mobilizing all available federal resources — civilian and military — to stop the rioting and looting,” was a head-fake.

A head-fake, Investopedia writes, occurs when the price of a security moves in one direction initially, but then reverses its course and moves in the opposite direction. These trades occur most frequently at key breakout points – for bitcoin, a key point was the $10,000 mark.

The price of the cryptocurrency dropped suddenly after breaking its key breakout level earlier this month over a flash crash on BitMEX that saw its price dip to $8,600 before it started recovering. CryptoCompare data shows that bitcoin is now trading above $9,600, but that since the March 12 coronavirus-induced market crash it has tested the $10,000 mark three times already.

Bollinger, it’s worth noting, has a decent track record looking at cryptocurrencies. In October 2019 the analyst accurately said the price of BTC dropping to $7,300 was a head-fake, and the price of the cryptocurrency then moved up in a significant rally to $9,500.

In April of this year, Bollinger tweeted out BTC was “moving into squeeze territory,” shortly before the cryptocurrency’s price started surging. He was, however, caught off guard by the Black Thursday sell-off, as were most investors and analysts.

It’s worth noting many in the cryptocurrency space are still bullish long-term. As reported early BTC developer Adam Back – who some believe could be Bitcoin creator Satoshi Nakamoto – has said he believes the price of the cryptocurrency will hit $300,000.

Featured image via Unsplash.