Alick Bannerman Posted October 23, 2019 Share Posted October 23, 2019 Binance, the world’s largest crypto exchange, has made many puzzled faces and causes for concern with their latest token burn for Q3 in 2019. Various insiders and crypto analysts were somewhat shocked when the statistics for Binance’s token burn were released. The exchange burned over 2 million BNB, which was the equivalent to around $36 million dollars. https://twitter.com/BinanceChainBot/status/1184698712276295681 The large amount burned is almost the same amount as the previous two cycles of 2019 combined, only adding to the surprise of commentators at the token burn. Binance determines how many tokens it burns by the amount of profits taken for each quarter and trading volume. If Binance burns 20% of all its profits, means this latest quarter must have been a good one. The Block’s Larry Cermak certainly thinks so, claiming Binance had their second highest profit amount. His tweet said: “Since Binance burns 20% of profits, we can deduce that it made approximately $186 million in profit in Q3. This is the second-highest quarterly profit” Many have seen this burning as a signifier of the many successes of Binance, but others have called into question the validity and sincerity of the burn. How can Binance burn so much despite the dip in trading volume across the industry this past quarter? Binance burn may not be all it seems? As previously mentioned, much of Binance’s burning decision is made on the basis of trading volume. However, this also causes some bemusement as Binance’s trading volume for the previous quarter was higher than Q3. The surprising nature of Binance’s burn did not go unnoticed by Cermak who stated on Twitter: “Binance’s spot volume dried up in the last few months. The market has been dead and yet Binance just burned the equivalent of the second-best quarter in existence.” Binance it would seem are not sticking to their white paper which states, “every quarter, we will destroy BNB based on the trading volume on our crypto to crypto platform”. The exchange is clearly making up the rules as it goes along, illustrating a lack of genuinity. The shady nature of the token burns does not end there. Another troubling aspect to Binance’s token burning is the amount they are actually burning. Their white paper claims they will destroy 50% of their circulating supply, with a starting point of 200 million BNB and an end result of 100 million BNB. However, some adding up of their burned addresses and current supply reveals that Binance has more than the 200 million BNB they had stated in the white paper. The formula being, 48,461,324 burned +185,474,825 currently =233,936,149 total. Clearly, this is yet another incident and PR disaster for Binance. This is on top of the hack earlier this year, which left the exchange 7,000 Bitcoins worth about $40 million out of pocket. Partner that with the KYC hack in August, which saw its customers personal details leaked, perhaps Binance and security do not go hand in hand. Now with these less than squeaky clean token burns, the reputation of Binance is on the line. Source of article: https://www.coinomi.us/binances-token-burn-creates-more-questions-of-the-exchange/ Quote Link to comment Share on other sites More sharing options...
Bonnie Berry Posted October 23, 2019 Share Posted October 23, 2019 What the hell? Like seriously?? Quote Link to comment Share on other sites More sharing options...
Norm O'Neill Posted October 23, 2019 Share Posted October 23, 2019 If you have anything to do with Binance, you can now see very clearly that this brand has nothing to offer. This is what I have been telling everyone around me. Now, the sign is even clearer than anyone can imagine. Quote Link to comment Share on other sites More sharing options...
Alice Frampton Posted October 23, 2019 Share Posted October 23, 2019 With Binance, there is no way for progress as far as you are an investor. Quote Link to comment Share on other sites More sharing options...
Ben Thompson Posted October 23, 2019 Share Posted October 23, 2019 My favorite crypto exchange is Binance. They did not become the largest in the world for nothing, they clearly know what they are doing. Quote Link to comment Share on other sites More sharing options...
Upul Tharanga Posted October 23, 2019 Share Posted October 23, 2019 By this time next year, there will clearly be nothing called Binance again. Quote Link to comment Share on other sites More sharing options...
Anne Morris Posted October 23, 2019 Share Posted October 23, 2019 It is part of the growth process. So just hope this works because there is so much on line for so many people. It got to be good!!! Quote Link to comment Share on other sites More sharing options...
KYCbench. Posted October 23, 2019 Share Posted October 23, 2019 Binance, the greatest name ever in the crypto world! This is what I thought but with how things are going, it's just going move completely opposite Quote Link to comment Share on other sites More sharing options...
Ashley Cole Posted October 23, 2019 Share Posted October 23, 2019 I am not surprised, the people handling Binance have never shown any level of intelligence and that explains why they keep messing everything up for everyone. Quote Link to comment Share on other sites More sharing options...
Latham Lapard Posted October 23, 2019 Share Posted October 23, 2019 Okay, so Binance is burning almost forty million dollars and they expect people not to question their sanity? Quote Link to comment Share on other sites More sharing options...
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