10th token burn
The token burn from the fourth quarter of 2019 was the tenth token burn in the history of the Binance Coin NBB. The event took place last weekend and a total of 2.2 million NBBs were destroyed. We take a look at the significance behind the intentional destruction ceremony.
What is a Token Burn
The term “token burn” refers to the intentional reduction of the coin stock. This has primarily deflationary reasons. In theory, a price increases due to the reduction of supply. Shortly after the news, the price at least recorded a slight increase. The token burn was already anchored in the NBB white paper. Of the respective quarterly profits, 20% are destroyed until the supply reaches a value of NBB 100 million. The current Token Burn has destroyed approximately 1% of the total supply. The destroyed NBBs had an equivalent value of USD 38.8 million.
NBB exchange rate in detail
Currently, the NBB coin is in position 9 on the crypto-charts at a rate of USD 17.99. With a market capitalization of approx. 2.7 billion USD, the Binance-Coin has a comfortable lead over its nearest rival (Stellar with approx. 1.3 billion USD market cap). The all-time high of USD 39.57 dates from June 2019. With its in-house token, the Chinese crypto exchange Binance has set new standards in recent years. Since its launch in 2017, investors have enjoyed a return of invest (ROI) of over 9000 %.
Silence on Tuesday
With a daily gain of 2.59%, NBB recorded the biggest upward trend in the top 10 on Tuesday, while Bitcoin is recovering from last week’s events and at Bitcoin SV, investors are waiting for new news about Craig Wright. At the moment the focus is on the “World Economic Forum” in Davos, which also deals with crypto currencies and the blockchain.