This quarter we will burn 2,528,767 BNB (roughly $32,700,000 USD), up from 2,220,314 BNB last quarter (roughly $30,000,000 USD at the time). Again, some random recap.
The overall market (BTC) remains relatively flat, with a slight drop in price compared to last quarter, but Binance was still able to pull in decent earnings. This is the highest number of BNBs we have burned in a quarter so far. This is a result of the strong support from our community, you, and hard work by the team, including our Angels. Thank you so much!
The fact that the overall market dropped doesn’t make much sense. We have seen $14 billion USD raised from ICOs so far this year, on par with 4x the amount raised in 2017. This alone should boost price. On top of that, we have seen many jurisdictions releasing favorable regulations towards ICOs, exchanges, and cryptocurrency. They changed from “unsure” to “want to attract blockchain businesses”. This is very exciting! Lastly, we have seen a huge uptick in institutional investments in the crypto space, both in number of firms and the size of their buy orders. So, I don’t understand why the price is dropping. I guess markets always overreact, both on the high and the low side.
I also learned a shocking amount of people still don’t understand the concept of “burn”. Simply speaking, if someone destroys 10% of a currency (burn), that achieves the exact financial effect as spreading that 10% proportionally to the other 90% holders (usually called a dividend distribution). Some people seems to be (wrongly) happier with a dividend distribution than a burn, for no logical reason. A dividend distribution has three potential downsides: 1) it costs more in network transfer fees, 2) has more complex legal and tax implications in some jurisdictions, and 3) involves more work. (Note though, buyback without burn is not the same, it is kind of “cheating”. They can/will sell later. It does nothing.)
For completeness, the inverse is also true. People will get angry if we take 10% of funds out of everyone’s account, yet when we print 10% more of a currency (quantitative easing), people don’t complain. Again, they are exactly the same financially.