Changpeng Zhao, CEO and founder of major cryptocurrency exchange Binance, said that the reasons why Binance Coin (BNB) dropped over 50% from its all-time high in June do not make much sense.
“Markets often confuse people”
Zhao explained that new services such as margin trading, an increased number of fiat onramps, peer-to-peer (P2P) trading, and futures trading have made the last quarter “very productive” with many significant projects coming to fruition.
Thus, the CEO isn’t sure why BNB price has slumped over the past few months, mentioning the drop in Bitcoin price among other possible reasons. Zhao noted:
“There are many possible reasons for it, although none of them make much sense to me. Yes, there was a drop in the price of bitcoin, our industry’s index. There was some FUD on various things (per usual). Regardless of all that, I think (in my biased view) our results out-shine them all. Yet, the price of BNB did decline. Markets often confuse people, even me sometimes.”
Binance burns $37M in BNB
Binance has also carried out a quarterly burn of 2,061,888 BNB, worth roughly $37 million, according to a post published on Oct. 17. There are now 185,474,825 BNB remaining. The exchange says it will continue with regular burns until there are 100,000,000 BNB left.
Binance Coin burn data | Source: Binance.com
Interestingly, the company’s profits can be calculated from the amount of burned funds, given that Binance burns 20% of its profits.
From this data, it can be derived that Binance earned roughly $185 million in Q3 2019 — its second-best quarter ever.
Binance US lists Zcash and Algorand
Binance’s U.S. platform meanwhile announced on Oct. 16 it will list more tokens and Bitcoin (BTC) trading pairs, all while the work on its mobile trading app continues. The first new cryptocurrencies to be listed, also announced yesterday, are privacy-focused Zcash (ZEC) and the native coin of Proof-of-Stake blockchain Algorand ALGO.
A BNB exchange-traded product was launched on the Swiss Stock Exchange earlier this week.