Binance coin burn coming up and Satoshi's coins in the spotlight
So the quarterly Binance Coin (BNB) burn is approaching rapidly. What is exactly the BNB token and why the burn? And what effect does it have on the market? ambcrypto.com takes a look.
The BNB token is obtainable on the Binance Exchange platform and it makes use of the ERC-20 standard. While you can easily trade it, sell it, buy it, holding BNB to pay fees carries significant advantages.
Namely, paying various fees with BNB token can halve your trading costs for the first year and significantly reducing the fees for the next years.
Now we get to the burning of the tokens.
Once every quarter, Binance uses 20% of it's profits to buy back BNB and destory them, until 50% of the BNB is bought back. How is the destroying done? They send it to an invalid address that has no private keys to access it, making these tokens inaccessible for future uses.
Basically, burning of tokens should increase scarcity and drive price up significantly. According to ambcrypto.com, 2 of the 3 burns so far have not created any significant price volatility or increase, but one of the burns saw a cool 50%+ increase in price of the BNB token.
Perhaps it will stop the price decay? we'll see. AFAIK the dates for burns are not pre-announced (feel free to correct me) to prevent price manipulation, but so far all the burns have taken place on the 18th of every 3rd month. Let's see, if there is any pattern and it falls to the same time when major crypto markets find a bottom, we might see a price appreciation.
Materials:
ambcrypto.com
ethereumworldnews.com
Satoshi's wallets
Did you know there's more than a million Bitcoins in the mysterious creator of Bitcoins wallets? While there is no specific wallet to monitor, analysts have determined that there ara thousands of wallets containing insane amounts of coins, just lying dormant.
Read more about these addresses here at bitcointalk.org
But what happens if these coins suddenly start moving? Has the creator destroyed these coins, by discarding private keys and all access to these? Or perhaps, he just doesn't need the money, yet.
There are theories about what could happen. Should these coins suddenly move to an exchange, this would create a crapstorm of an insane magnitude, blowing over markets and seeing wave after wave of selling from panic hodlers. But there's also another theory.
If the Bitcoin was actually created by some government organization, for example the NSA, what better way to discredit cryptocurrencies than destory the markets by dumping all their Bitcoin, destroying all hodlers except very early adopters?
img credz: pixabay.com
Lets hope this theory is not true - my personal belief is that the creator is one or a small group of people, who already have made their fortunes and are fully aware of the implications that moving of these millions of coins would have on cryptocurrencies in general.
Read more about it:
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If Bitcoin was basically the first Cryptocurrency, the conspiracy theories don't hold water because the govt. who created it would have to have been able to see into the future if disrupting a not yet created cryptomarket was their plan!
My theory is these accounts holding loads of bitcoins belonged to very early adopters who simply lost their keys.
I wouldn't worry about them suddenly being brought into play and blitzing the market!
Loving your 'good morning' articles mate! Have a great day :-)
Morning mate, thanks for your always cool comment. Yeah, i'm not much of a conspiracy theorist myself either and the theories in that thread we're too long and boring to get into properly, so i summarized it a bit here :)
Binance coin burn is a quarterly event and there is a limited supply of these coins. Is this the right strategy to burn the coin before moving to their own blockchain. I think first they should move from erc20 to their own blockchain and then these burning of coins should take place to increase the stability of the network.
I really hate manipulation. It's ok that BNB is burned to increase the price, ok that's scheduled. But what about whales they suddenly wipe out $20 to $30 billion market to dump it and make people exit market so that they can buy at the lowest price possible. See facebook first they banned crypto ads and now when price is at its lowest they just reversed their decision for their investment.
Can feel the pain in this comment : ) I don't even hold bnb anymore as a for of the process, cause of management tendencies to manipulate the price :) Just use it for saving on fees.
Those wallets owners probably died without giving anyone the password
Haha, quite possible :)
I also have a feeling that the early adopters and creators just forgot the keys.. hard to say! In our case though that would be great lol!
Keep send post about these type of topics.
@furious-one
BİNANCE coin is going good because of it's strategy of burning coins regularly