Binance Coin Gains Modestly as 8th Token Burn is Completed
In an announcement made early Friday, the Binance team announced that it had completed its 8th scheduled token burn, totaling 808,888 tokens (for a value of $23.8 million as at the time of the burn). This burn is expected to commence the process of total relinquishment of BNB tokens still held by the Binance team, valued at $2.4billion. Binance tokens are typically burned every quarter and this is the 8th in the series.
So far, only 5.81% of the total circulating supply of BNB has been burned. Eventually, the entire stake held by the Binance team (about 40% of supply in all) will be burned in two phases. This phased burn of BNB will see a major chunk of the remaining tokens (89,000,000) burned in order to shrink the total supply of BNB to 100,000,000 tokens. According to the press release, members of the team will continue to be paid for their work on the project in small bits of BNB.
The price of the Binance token reacted positively to the news, as it gained modestly for the day against Bitcoin. However, the BNB/BTC pair continues to remain in a downtrend, halted only by a lull in BTC prices.
If the BNB/BTC pair is able to breach the resistance at 0.0029093 (23.6% Fibonacci retracement traced from a swing high of 0.00450000 and swing low of 0.0024150), then price will make a push for 0.00321010. This view will be supported if BTC prices dip further in the market.
Failure of price to breach the resistance at 0.0029093 will see the price make a further push to the downside at 0.0024231. This view will be supported if BTC prices pick up.