Binance burns 16 million BNB tokens as part of the conversion from the ERC20 version of BNB to the old BEP2 version.
On January 29, on-chain evidence from Etherscan verified burn transactions from the "Binance 8" wallet. On the BNB Chain Explorer, a burn of 16,186,608 BNB coins was also spotted with a cost of just 0.000075 BNB.
To the original BEP2 version, Binance burns 16 million BNB tokens.
Changpeng "CZ" Zhao, the CEO of Binance, said on Sunday that the company has destroyed more than 16 million BNB (ERC-20) tokens. Following the launch of the BNB blockchain, cryptocurrency exchange Binance is changing the ERC20 version of BNB to the native BEP2 version. The BNB price increased by over 2% to $315.
The Binance team will transfer/burn significant quantities of BNB tokens in the coming hours, according to a tweet from the company's CEO, "CZ," on January 29. After observing these transactions on-chain, he pleaded with detractors not to broadcast false information.
The burn is related to changing the native (BEP2) version of BNB from its ERC20 variant. Since the introduction of native BNB blockchains, Binance has converted some holders' BNB (ERC20) tokens. It was recently announced by Binance that 16 million BNB (ERC20) tokens had been deposited into a Binance wallet.
Burn transactions from the "Binance 8" wallet were verified by Etherscan on-chain data on January 29. A burn of 16,186,608 BNB coins was also discovered on the BNB Chain Explorer, with a transaction fee of just 0.000075 BNB.
Crypto Twitter responds to CZ's remark and commends Binance for being transparent. These ERC20 BNB tokens are not included in the quarterly burn and their burning has no effect on the total supply of BNB.
The 22nd quarterly BNB token burn took place on January 17 at Binance, burning 2,064,494.32 BNB coins. Binance reduces the total quantity in circulation to 100,000,000 BNB by using the Auto-Burn method.
The price of BNB reached a high of $320 following the Binance team's burn of 16,186,608 BNB coins. In the last day, the price of BNB increased by almost 2%, and it is now $315. The 24-hour low and high are, respectively, $304 and $318.
Trading volume has decreased over the past 24 hours, indicating that a delayed responding to the BNB burn. Before the U.S. Federal Reserve decides to raise interest rates on February 1, the cryptocurrency market is still trading sideways.
