Binance Burns Over 16 Million BNB Tokens, Price Jumps

Binance CEO Changpeng “CZ” Zhao on Sunday announced the Binance team has burned over 16 million BNB (ERC-20) tokens. Crypto exchange Binance is converting the ERC20 version of BNB to the native BEP2 version after the launch of the BNB blockchain. The BNB price jumped nearly 2% to hit a 24-hour high of $315.

Binance Converts 16 Million BNB (ERC-20) to BNB (BEP2)

Binance CEO “CZ” in a tweet on January 29 said the Binance team will transfer/burn large amounts of BNB tokens in the next 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, Binance converts BNB (ERC20) tokens held by some holders. Recently, Binance announces depositing about 16 million BNB (ERC20) tokens to a Binance wallet.

Etherscan on-chain data confirms a burn transaction from the ‘Binance 8’ wallet at 07:59 AM on January 29. Also, the BNB Chain explorer reveals a burn of 16,186,608 BNB tokens, with a transaction fee of just 0.000075 BNB.

Crypto Twitter reacts to CZ’s tweet and appreciates the transparency from crypto exchange Binance. The burning of these ERC20 BNB tokens doesn’t count towards the quarterly burn or impact BNB’s overall circulation.

On January 17, Binance burned 2,064,494.32 BNB tokens in the 22nd quarterly BNB token burn. Binance uses the Auto-Burn system to reduce the total circulating supply to 100,000,000 BNB.

BNB Token Price Jumps After Burn

After the burn of 16,186,608 BNB tokens by the Binance team, the BNB price hit a high of $315. The BNB price jumped nearly 2% in the last 24 hours, with the price currently trading at $312. The 24-hour low and high are $304 and $315, respectively.

Meanwhile, trading volume has declined in the last 24 hours, indicating a did not immediately react to the BNB burn. The crypto market continues to trade sideways ahead of the U.S. Federal Reserve rate hike decision on February 1.

Also Read: This Government Announces System To Track All Crypto Transactions

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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