(BlockBar)Binance buybacks BNB and tries to destroys it. Whether BNB is worth investing remains a question.
Binance has adjusted its plans of repurchasing. In short, Binance’s move is to destroy the BNB distributed directly to the team instead of buying it in the market with quarterly profits. The total circulation of BNB is 200 million, of which 80 million are owned by the team. At the beginning of the release, the team planned to destroy it until the total BNB volume was 100 million. According to the announcement, the amount of BNB destroyed is 800,000 this time.
From the first destruction at the end of 2017, it is roughly estimated that 100 million BNBs will not be destroyed for at least seven years. The BNB held by the Binance team has been unlocked since last year and will be unlocked within four years. Therefore, the time span needed to destroy 100 million pieces must be longer than four years (that is, the whole unlocking timespan). Although the BNB held by the team has not been circulated so far, sooner or later the money in the team’s hands and in the hands of early strategic investors will flow into the market to expand circulation. Therefore, in the long run, there is no big difference in destroying which kind of BNB.
In addition, the impact of deflation caused by the destruction of tokens on currency prices is more psychological than practical. It is the same method of stock reduction used by Listed Companies in Hong Kong: when listed companies reduce 10,000 shares in circulation to 5,000 shares, the stock price doubles. therefore, in the purely deflationary sense, the rise in the price of the currency has doubled. BNB has risen sharply since the Spring Festival this year, from about $10 to $30, which has tripled. The fundamental driving factor is that Binance gives investors a lot of imagination rather than deflation.
Through it, Binance has already surpassed its original self-positioning as an ordinary exchange but built up a comprehensive service system for digital money investors. In this way, other exchanges are in a state of follow suit. In fact, this matter itself has so much ambiguity, so the resolution of this matter can be varied. However, the most important thing is that it has created a hot topic for Binance, once again objectively let Binance lead the hot spot.
For major exchanges, that they stare at the event itself will not make much sense. They should carefully consider the marketing, planning and topic-making capabilities of Binance. For investors, the price fluctuation caused by this event is only temporary.
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