Binance Coin (BNB) Burning the FUD
Burn BNB Burn
FROM THE BINANCE WHITEPAPER
Repurchasing plan Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining
MY COMMENT: Listen, we can debate the phrase "buyback" all day long, however the reality is that 999K BNB coins were in fact BURNED from the overall 200M supply. So a "Million" coins are in fact gone. These "BURNED" coins were collected from trading fees paid into the Binance platform, along with other BNB coins that will be used as Quarterly Revenue. So, from this 7 Million Quarterly Revenue Earnings, 1.5 Million dollars have in fact been BURNED. Please consider that if these coins were not BURNED, then they would be utilized by Binance to increase Binance's own financial well being. As a BNB coin holder, I am satisfied with the method utilized by CZ and his team, however if I were a swing trader, or day trader, I would not be satisfied, as I would have utilized the inevitable Market Run-up initiated by the BUYBACK to sell my coins into the market. I would then rinse and repeat this strategy every Quarter. This "False" Market Run Up would in fact be a day trader/swing trader Bonanza and NEVER benefit the long term holders like me. Is this something that CZ and the founders who hold the most BNB coins have considered when determining the method to BURN coins?
As this Quarterly Burn is better understood, I believe the Markets will realize you have a rapidly expanding company, which is represented by a coin (BNB), that has a diminishing supply. Remember CZ's own words ""the Binance coin will reflect the value of everything we do." So forward looking investors, and probably not swing traders, should be accumulating BNB coins for an expansion that is currently underway, yet in the very early stages. Please see my original video to better understand just how many uses, BESIDES the trading fee advantage, there are for the BNB coin moving forward, such as the GAS of the FUTURE decentralized network powered by Binance, as well as the only payment accepted for any of Binance's sister companies products or services.
In other words please consider a future where the Binance coin supply has been BURNED down to it's target supply of 100 Million coins. When this future arrives and 100 Million coins is the total supply, will the expansion of the Binance protocol be in it's final stages? Will BNB coins then power a decentralized exchange as GAS? Will the sister companies of Binance, like Bijie Tech, that only accept BNB coins as payment be successful and expanding as well? These are forward looking statements, I'll admit, but markets are in fact forward looking! Finally consider who has the most to gain by the rise of the BNB coin price? Who are the largest holders ;)
An early look at the expansion of Binance and it's BNB coin is Binance Labs. When looking at the purpose and capabilities that will encompass Binance Labs please consider that the BNB coin will be used as the currency used to participate!! DEMAND!
BNB Coin Chart
When looking at the chart, please consider that the stated 200 MIllion supply is not correct since 1 Million has recently been burned. Also consider that the ATH is about 3$ back on August 21st. Sure a lot of that was technical FOMO, but this FOMO can return at any moment. We cannot be certain when/if that moment will return, but we can read the tea leaves while listening to the words of CZ on 10/18: "We have a lot of exciting things in the pipeline .... we are going to release these very quickly, we are going to continue to add more coins, and we are going to continue to grow the platform" STRONG BUY
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