Major Binance Announcement Concerning Many Crypto Users
Check out what Binance plans to do today (January 22).
TL;DR
The exchange plans to burn a substantial amount of Binance-pegged assets.
Following a recent BNB token burn, the price showed a minor fluctuation.
The world’s largest cryptocurrency exchange will burn “a significant amount of Binance-pegged” assets on various chains today – January 22.
“The equivalent amount of these tokens on their native networks, which were used as collateral, will then be released,” the company said.
However, the exchange’s statement failed to name the exact tokens that will be affected by the burn.
Such burning programs, adopted by numerous crypto organizations, aim to reduce the circulating supply of a certain asset, making it scarcer and potentially more valuable in time. One of the most popular projects utilizing this strategy is Shiba Inu, whose ecosystem burns tokens quite frequently.