After a successful Binance Coin (BNB) token burn which took place last week, traders are keeping their eyes peeled for when the third-largest token by market cap will hit new highs. Changpeng Zhao, CEO of Binance, the exchange behind BNB, came to the aid of the curious one’s right on time, as he dropped subtle hints on what the future ahead could turn out to become.
CZ is optimistic about the future of BNB
In a tweet that has since left enthusiasts even more excited, Changpeng Zhao ironically backtracks to December of last year, when the asset was only worth $25. In what seemed like the shortest bull cycle, BNB surged 14x this year, hitting an overall market value of $86 billion, while also knocking out many other altcoins to sit at the third position.
Per CZ’s tweets, BNB is poised for a continuous bull rally in the long term, despite the recent $600 million BNB burn currently doing little to move its value.
BNB burns are carried out every quarter, when the network destroys the tokens it bought back, with the sole purpose of reducing its supply. BNB has a total supply of 170 million BNB, with 154 million in circulation. For the 15th quarterly burn, BNB took out a total of 1,099,888 BNB, eliminating over half a billion dollars from its circulation. This made the total supply significantly lower, slashing it from 170,532,825 BNB to 169,432,937 BNB.
Investors to propel BNB to new levels
Investors usually take burns as an entry point into a market. For BNB, CZ believes this will be the case. As he explained:
“A burn achieves the same economic effects as an airdrop, with no need for as many tx on the blockchain, and more evenly distributed.”
He goes on to add that the price of BNB will dance to the tune of interested investors, essentially implying that a price spike is a given. Although it is important to remember that CZ’s analysis does not take away from the fact that market dips will always occur from time to time.
“I am always surprised that few understand this. But the price of the coin eventually do understand. Not financial advice.” He added.
When a Twitter user commented on his post saying: “BNB will go to $1000 because it was created FOR THE PEOPLE!” The CEO responded affirmatively, with the word “bookmarked.”