On Wednesday, the controversial crypto exchange giant Binance successfully completed its quarterly burn of 1.99 million #BNB coins worth around $477 million.
Since October 2017, the exchange has started performing quarterly BNB burns to limit the token's supply.
The price of the BNB did not significantly rise following the burn, with the token trading at $244, up 1% in the past 24 hours.
According to the statement made at the time of the BNB introduction, 100 million BNB (half of its entire production) would be destroyed by a burning procedure.
Since then, substantial volumes of BNB have been incinerated using the Auto-Burn formula on a quarterly basis.
As part of Binance's Pioneer Burn, the 24th quarterly burn withdrew 747.51 BNB from circulation.
BNB burnt as part of the pioneer burn program represents proven lost cash for qualifying #BNBChain⚡️ customers.
The exchange eliminated nearly 2 million BNB from circulation in its 23rd quarterly BNB burn in April.
Binance CEO #ChangpengZhao cautioned in a tweet that additional on-chain (big) transactions would be made soon to distribute/spread the money to more addresses.
The Auto Burn algorithm determines how much BNB to burn depending on the coin's price and the number of blocks created on the BNB chain.
Some people questioned the last quarterly BNB burn and internal cash movement inside Binance.
Several people even linked Zhao's remark to the indicted Sam Bankman Fried's tweet during the FTX crash.
As previously reported, with the mounting regulatory turbulence, crypto traders are displaying pessimism in the futures market for the troubled crypto exchange's native currency BNB.
According to Coinglass statistics, the open interest-weighted financing rate on Binance's BNB currency has gone negative this week.
The negative open interest indicates that traders betting on a price decrease are ready to compensate those betting on profits to keep their bearish bets open on the cryptocurrency.
The open interest in BNB perpetual swaps had surpassed $400 million at the time of writing.
If the price of the token falls to roughly $220, the fifth biggest cryptocurrency by market size may experience huge liquidations.