Turkish lire; Dr
- The exchange is planning to burn a large amount of assets linked to Binance.
- After the recent BNB token burn, the price showed slight volatility.
It will be the largest cryptocurrency exchange in the world Burn “A large amount of assets linked to Binance” on various chains today – January 22.
“The equivalent amount of these tokens will then be issued on their native networks, which have been used as collateral,” the company said.
However, the exchange's statement failed to specify which tokens would be affected by the burn.
These burn programs, embraced by many cryptocurrency institutions, aim to reduce the circulating supply of certain assets, making them rarer and potentially more valuable over time. One of the most popular projects using this strategy is Shiba Inu, whose ecosystem frequently burns tokens.
Some users praised Binance for its move, claiming that it reflects its “commitment to token economics” and that the company remains true to its promise of greater transparency. However, others believe the move could lead to enhanced volatility for affected cryptocurrencies, especially those with smaller market caps.
Last week, Binance completed its 26th quarterly burn of BNB tokens, reducing the supply by 2.14 million assets (equivalent to about $660 million at the time).
It should be noted that the exchange aims to reduce the total trading supply of its native token to 100 million, which is 50% less than the starting point. You can find more about BNB burning software in this article.
Initially, BNB price showed little volatility, continuing to trade sideways at around $310 (according to CoinGecko data). It trended north in the following days, surpassing the $320 mark earlier in the day before falling back to its current level of $315.
