Today marked the completion of Binance’s ninth quarterly burn of their proprietary cryptocurrency Binance Coin (BNB), with 2,061,888 BNB tokens (worth $36.7M at the time) being taken out of circulation. Most notably, this also marked the achievement of Binance reaching $1 billion in cumulative profit from all 9 token burn rounds.
Binance conducts each quarterly burn of BNB tokens by burning 20% of their profits during that quarter. This means that during Q3 2019 alone, Binance made a profit of $183.5 million if they burned 2M+ BNB tokens at $17.79 apiece. Of note is the fact that these 2M+ burned tokens more than double the amount of BNB burned in Q1 and Q2 2019 combined. Overall, only the third and fourth quarterly burns took more BNB out of circulation, corresponding to Q1 and Q2 of 2018.
Q3 2019 is also their second most profitable quarter ever, only behind Q4 2017, when Binance made a profit of $201.5M.
Binance CEO Changpeng Zhao highlighted that the multiple announcements and new services that were launched in Q3 were key contributing factors for the growth of the exchange. Among these is the margin & lending and staking services, the Binance USD (BUSD) stablecoin, and the Binance.US exchange.
An additional announcement was made in a blog post regarding BNB. Due to the increased utility of BNB, which has reportedly “evolved far beyond Binance”, the coin will be referred to simply as “BNB”, though it is unknown if this will result in an official name change.
“CZ” also addressed the fact that despite the multiple announcements, the price of BNB had fallen from the all-time high price that had taken place at the beginning of the quarter, yet he couldn’t provide an explanation as to why. Regarding this, he stated: “We still very much strive to be the financial infrastructure provider for tomorrow, and work hard to bring the freedom of money to the masses. We will continue to hunker down, and BUIDL.”