BINANCE COIN PRICE PLUMMETS FOLLOWING 8TH TOKEN BURN

[ICOrealityshow]

The price of Binance’s platform coin, BNB, is in freefall after the exchange switched its token burn method.

Since the burn on July 12, the price has fallen off a cliff, dropping from $31.69 per token at noon on July 12, to $27.91 per token at press time, a drop of 11 per cent, and a marked difference to earlier this year when the exchange’s native token appeared to be on steroids, skyrocketing in price more than six-fold since January.

Why?

The reason? It looks as though investors are pulling their money out of the asset following the news that Binance’s eighth quarterly token burn would destroy tokens held by the Binance founders and executive team, instead of burning tokens that were already in circulation on the market.

Every quarter Binance buys back tokens before “burning” or destroying them, and in the last couple of years it’s burnt between 808,888 and 2.5 million tokens in this way each quarter. On July 12, 808,888 tokens valued at nearly $24 million were burnt.

The aim of the burn is to reduce supply of the asset, and to increase its price.

In fact, in the same time period as above the overall market capitalization of the asset has taken even more of a hammering, suggesting investors are unsettled with Binance’s new method of burning tokens.

Around noon on July 12, BNB had a market capitalization of almost $4.5 billion, while at press time it had shed close to $1.5 billion to sit around the $3 billion mark, a drop of a massive 33 per cent.

Criticism

While the Binance co-founder He Yi, said that the new method was the same as the previous burn, critics across Chinese social media begged to differ, leading to heated wars of words across WeChat, and elsewhere.

The major criticism that Yi and other founders faced was that burning the tokens in this new way could actually devalue the asset, a prediction that ominously seems to be unfolding before everyone’s eyes.

But other critics said that allowing the Binance leadership team to burn the tokens that were allocated to them when the asset was first created, gave them a quick and easy way to cash out, take profits, and remove liquidity from the BNB market.

Either way, investors have reacted badly to the news. It’s anyone’s guess on where the price goes from here.

Source of article: https://cryptonode.us/2019/07/17/binance-coin-price-plummets-following-8th-token-burn/

[CryptoYears]

Already moved from Binance!! Shame on them for considering users as nothing

[ICOselector2018]

This is not going to stop at all. Binance has made major blunders in last 4-5 months. I am sure they will realize it soon.

[Jatel Rawal]

Not surprising for me. I am against this and I am not alone.

But I guess they won’t listen to people!!!

[Djlakhany]

Lol, they think public is fool. No we are not THANKS!

[Richardson7]

Man!!! What are these nuts doing with Binance? Used to be my favorite but now I have completely stopped using it

[Andy Blignaut]

Thanks for sharing…..

Interesting decision. But maybe its right not a major difference it seems to me

[IcoInsane]

It is going to go below $20! Mark my words

[MasterMania]

A bad move. Should listen to the users…

Anyway best of luck

[aiviaa485]

If this really happened, then this would be very embarrassing to Binance and all the founders who had founded Binance.

And I think this is a real blunder because this blunder is able to drop the price of Binance coins in all markets.
Instead of wanting to raise the price for the Coin Binance, eh after that fell back from the hill, then this is definitely a wrong and very embarrassing trick for the Coin Binance.

[leithy]

Below $18 today. Time to buy soon?

[masudginanjar]

This is a misperception from investors who do not understand the purpose of burning Binance coins.

I still remember when this bad news occurred that Binance was priced at 15 USD for 1 Binance Coin.
See now the market for Binance coins has recovered and the price of Binance coins in the market is around 17.8 USD and this is a decent increase from the previous bad news, this is correct right ?

[kent47400]

I think it's just an illusion for Biannce's rise to be high in price.
Binance has something a wide variety of cryptocurrency traders want, so dropping the burn price is just a bit of a miscommunication and it's still natural in the cryptocurency business.

[damsix]

-

This isn't just about Binance improving itself in every active period of its trading.
Binance also needs some encouragement from the entire community to make Binance into the top gainers because Binance is also an altcoins that is the same as Ethereum (not centralized).