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Binance announced on July 18 that it had burned 1,296,728 BNB tokens worth more than $390 million. The cryptocurrency exchange made this announcement after concluding its 16th quarterly BNB burn. BINANCE also noted that it burnt an additional 5,163 BNB as part of its Pioneer Burn Program.
The purpose of the Pioneer Burn Program is to assist users who lost tokens via mistaken transactions over the last quarter to smart contracts. Binance compensates the users by refunding the lost tokens and then deducts the token from the exchange’s total burnt amount for the quarter.
This is the second-largest burn in BNB’s history by fiat value, as the crypto exchange burned a massive sum of $600 million earlier this year in March. Although this recent burn was huge, it had little to no effect on the market.
The exchange has promised to burn 20% of its gains every quarter. The recent burn indicated that the company could have gained $2 billion in profits during Q2 2021.
Facing regulatory tensions from Germany, Hong Kong, and the U.K., Binance stopped selling its stock tokens on Friday. The exchange did not explain its decision.
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