The Binance team was allocated 40% of the BNB minted during the ICO back in 2017
The 80 million BNB is now worth $37 Billion
CZ has clarified that all team allocated BNB from the ICO will be burned
Binance Coin (BNB) dropped to a local low of $428 due to the crypto market crash earlier today
However, fundamentals surrounding the Binance Smart Chain and BNB remain strong
The CEO of Binance, Changpeng Zhao, has shared via Twitter a plan to eventually burn all team allocated BNB from the exchange’s 2017 ICO. According to CZ, the Binance team was allocated 40% of the 200 million Binance Coin (BNB) minted. This amount of 80 million BNB, is now worth roughly $37 Billion, and the team at the exchange plans to burn it all rather than selling it at a profit.
CZ shared this information through the following tweet that also provided the blockchain addresses of where the team allocated BNB is kept for tracking purposes.
#Binance team had an allocation of 40% of the total supply of #BNB from the ICO days, which is worth just over $37 billion dollars at today's (dropped) prices. We have not sold a single #BNB so far, and never intend to. We will burn it all. More info: https://t.co/6YM7O7vqDZ
Binance Coin (BNB) Drops to $428, But Fundamentals Remain Strong
Earlier today, Binance Coin (BNB) dropped from $518 to a local low of $428 as a result of a crypto-wide dump that resulted in over $10 Billion in liquidations. At the time of writing, Binance Coin is trading at $466 as the digital asset attempts to recover from the dip, and possibly reclaim $500.
A brief analysis of the daily BNB/USDT chart below reveals that the coin has a brutal few days ahead, at least till the price of Binance Coin touches the 50-day moving average (white) as was the case back in late March.
Also from the chart, it can be observed that all indicators point towards a bearish few days or weeks for Binance Coin (BNB). To begin with, the daily MACD is about to cross in a bearish manner above the baseline. Secondly, the daily MFI and RSI are dropping from overbought territory thus implying an ongoing correction.
However, the fundamentals surrounding the Binance Smart Chain continue to provide much-needed bullish momentum for Binance Coin (BNB). The Binance Smart Chain continues to attract new DApps and the migration of those trying to escape the high gas costs of operating on Ethereum. Furthermore, network activity is still high with the Binance Smart Chain processing roughly 4.76 million transactions in the last day.
Therefore, the bearish environment surrounding Binance Coin might just be a precursor to further gains as its utility on the Binance Smart Chain is bound to increased demand for the digital asset.