Binance has burned 1.6 Million BNP Tokens that are worth $17 billion. This is a fifth quarterly burn that is synonymous with most Blockchain platforms operational rules. In its whitepaper, Binance had promised to be burning unused Tokens and buying back a proportion of the total BNP supply. The publication of the information is in line with Binance promise to investors and users to be transparent.
The torching of the 1.6 Million BNP indicates that Binance earned profits of $85 million during the Q3 of 2018. This is a good performance considering that tough operating environment for Crypto exchanges.
Binance Whitepaper Details Attracted Investors
During the unveiling of Binance in early 2017, the Binance Whitepaper attracted attention as it stated that the company would buyback (burn) their BNP tokens using 20% of their profits. Investors were confident in this Blockchain platform as the buyback policy could mean that BNP supply could be lowered and prices could be boosted for the benefit of investors.
Hence, the $17 million worth of BNP is a fifth of the entire profit for the fifth fiscal quarter of Binance profits. Crypto enthusiasts believe that the buyback scheme is the silver bullet that can catapult the platform to prominence.
Binance profits Took A Dip
Compared to a Q2 of 2018, data shows that Binance profits have taken a slump by 50%. In that period, the company burned BNP tokens worth $32.7 million. This is in line with most critics pessimism as they believed that Binance was headed for a crush. However, the bottom line of the matter is that Binance has still raked in significant profits despite the harsh business climate in Crypto markets following long-standing volatilities.
CEO Changpeng Zhao believes that Binance is a futuristic platform that will be at the center of the much-anticipated surge in Cryptocurrencies adoption that is being anticipated. Further, the CEO, in a tweet says that the BNP burn is the most successful ever by Binance given the circumstances that it has happened. He believes that this is an indication that the company is on track to its roadmap ambition of dominating the Crypto space.
Bitcoin Is Still Expanding
The company is not letting the dip in profits to deter its expansion momentum as it believes that it is positioning itself for the future. Recently, according to Ethereum World News, Binance entered the African market by launching a fiat to crypto exchange in Kampala, Uganda. The new launch aims to offer Ugandans a chance to buy Bitcoin and Ethereum coins in exchange for Uganda Shillings. Binance Uganda is deemed as strategic given that the country has one the fasted growing populations in the world which means a huge future market.
Additionally, Binance has established a presence in Singapore and Liechtenstein where it has opened a decontrolled exchange (DEX). The new platform would eclipse out centralized platforms that have stifled consumer options. CEO Zhao has, further, assured Crypto investors that a beta version of DEX would go live in the course of 2018.
Meanwhile, the burning of BNP is expected to trigger a bullish run for the token any time soon.