Companies offer a variety of reasons for buying back shares or for the substantial sale of shares. History has shown us some examples of this practice that brings the company to blame.
The Swiss-based company EIDOO announced that it would burn 1% of its tokens in November. Immediately after this statement attracted considerable attention, people started buying EDO tokens from exchanges and increasing the price by a crazy 40%. For those who owned these tokens before the price increase, a huge return on investment was guaranteed. After buying a majority stake in a company, they wanted to quickly make a profit selling their assets. Managers hurried to protect their institutions, developed new defense measures, and turned to state courts.
Let’s get to the latest and most powerful token burning news, perhaps the world’s most popular crypto exchange, that has been a record-breaking achievement. Burning coins is not new to Binance, as it has been announced that quarterly burning will take place until half of the entire supply is removed. With 200 million BNB spent, we can expect these events to continue until 100 million coins are burned.
Those who had BNB tokens would have seen a price increase due to their size. As quoted by Binance himself, the burning strategy is aimed at reducing the BNB coin offering on the market and increasing its value for its shareholders. This burn occurred in the same month as Binance’s third anniversary, and the number of tokens burned is calculated based on the number of trades on its exchange over a three-month period.
Binance released its BNB coin in 2017 with the goal of creating a utility token that people can use for discounts and free market trading. And just a few hours ago, the $ 60.5 million token was withdrawn from circulation. At the time of writing, it is the tenth largest cryptocurrency by market cap.
There is no doubt that the conglomerate played its cards fairly thoughtfully, but whether the strategic move will bring benefits remains to be seen.