Binance hits another all-time high with $60 million burn

Binance announced its second-quarter burn of $60 million of its native BNB token surpassing its prior all-time high from last quarter.

While not explicitly based on revenue, the burns are indicative of trading volumes on the exchange and should generally reflect Binance’s performance. Spot volume was relatively flat, but futures increased from $157 million in the first quarter to $263 million.

Why it matters

• The burns have come under scrutiny after initially claiming to use 20% of revenue to execute them but later removing that language. The CEO of Binance, Changpeng “CZ” Zhao wrote a blog intended to clear up some misconceptions stating that

In January 2019, we changed the wording around “buy-backs” and the association with “20% profits.” This was done based on a third-party legal counsel advice indicating the potential for being misunderstood as a security is higher in certain regions, and it was not accurately describing the fact that we don’t need to “buy-back.”

• Binance’s burn program will continue until 100 million are removed from circulation. With their 12th quarterly burn, they have now burned 23.6 million representing almost a quarter of the total amount allocated towards burns.