Binance Coin (BNB) market cap slashed by $1.5B, Changpeng Zhao explains why
|- The market value of Binance Coin (BNB) dropped significantly.
- As a result, the coin moved to the 8th place in the global rating.
Cryptocurrency info portal CoinMarketCap changed the way it calculates BNB circulation supply. It happened several days after the cryptocurrency exchange Binance, the issue of the coin, announced the amendments to its BNB burning program.
Thus, in the previous week, the exchange burned 808 888 BNB to the total amount of $23,838 million. Changpeng Zhao mentioned that the team did not spend the coins that were set aside for Binance ecosystem development (40% of the total issuance).
"CMC just gave an 80M BNB haircut. They way CMC calculate Circulating Supply works only for mining coins; it does not work for projects with burn, unlocked team allocations, etc. Oh well, more room for $BNB to grow," he explained after the portal reduced the coin's market cap.
It is worth noting, that BNB's total value dropped from $4.59 billion to $3.08 billion, while the token lost two positions in the global cryptocurrency rating. Now it takes the 8th place.
The exchange plans to burn the tokens until the circulating supply reaches 100 million BNB. Now it is 109.1 million BNB.
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