Binance Crypto exchange CEO Changpeng “CZ” Zhao on Sunday announced the Binance Crypto exchange team has burned over 16 Million BNB (ERC-20) crypto tokens. Cryptocurrency exchange Binance is converting the ERC20 version of BNB to the native BEP2 version after the launch of the BNB blockchain tech. The BNB price jumped nearly 2 percent to hit a 24-hour high of $315.
Binance Crypto exchange Converts 16 Million BNB (ERC-20) to BNB (BEP2)
Binance Crypto exchange CEO “CZ” in a tweet on January 29 stated the Binance Crypto exchange team will transfer/burn large amounts of BNB crypto tokens in the following few hours. He requested critics to avoid spreading FUD after noticing these transactions on-chain.
The burn is linked to converting the ERC20 version of BNB to the native (BEP2) version. Since the launch of native BNB blockchains teck, Binance Crypto exchange converts BNB (ERC20) crypto tokens held by some holders. Recently, Binance Crypto exchange outlines depositing about 16 Million BNB (ERC20) crypto tokens to a Binance Crypto exchange wallet.
Etherscan on-chain data confirms a burn transaction from the ‘ Binance Crypto exchange 8’ wallet at 07:59 AM on January 29. Similarly, the BNB Chain explorer outlines a burn of 16,186,608 BNB crypto tokens, with a transaction fee of just 0.000075 BNB.
Cryptocurrency Twitter reacts to CZ’s tweet and appreciates the transparency from cryptocurrency exchange Binance Crypto exchange. The burning of these ERC20 BNB crypto tokens doesn’t count towards the quarterly burn or impact BNB’s overall circulation.
On January 17, Binance Crypto exchange burned 2,064,494.32 BNB crypto tokens in the 22nd quarterly BNB crypto token burn. Binance Crypto exchange uses the Auto-Burn system to lower the total circulating supply to 100,000,000 BNB.
BNB Crypto Token Price Jumps After Burn
Following the burn of 16,186,608 BNB crypto tokens by the Binance Crypto exchange team, the BNB price hit a high of $315. The BNB price jumped nearly 2 percent in the previous day, with the price as of now currently worth $312. The 24-hour low and high are $304 and $315, respectively.
In the meantime, volume of trading has declined in the previous day, indicating a did not instantly react to the BNB burn. The cryptocurrency market persists to trade sideways ahead of the United States Federal Reserve price hike decision on February 1.
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