Why is the price of
$BNB rising? What is "burning" (BNB Burn)? 🔥
Guys, have you ever heard of "coin burning"? And why does Binance burn millions of dollars of its own currency periodically? 🤔
Simply put, the burning process is the removal of a portion of the coins in circulation forever. Imagine there are only 100 apples in the world, and suddenly we decide to destroy 20 of them.. what will happen? The remaining ones will become more expensive and rarer!
And this is what happens with the currency
$BNB :
Goal: Reduce the total supply of the currency to only 100 million pieces (half of the original amount).
Result: Increase the "rarity" of the currency, which helps to raise its market value in the long term.
Commitment: Binance conducts this burning in an "automated" and periodic manner based on trading volume on the network.
Why should you care as a trader or content creator? 📈
Because following the news of the burn gives you an idea about the "health" of the project and its future strength. The currency
$BNB is not just a coin, but a whole network engine (BSC).
Tell me, did you know that the burn is done completely automatically now? And which currency would you like me to explain its system next time? 👇
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