Why Binance Coin Is Flying High Today
Binance Coin (CRYPTO: BNB) is up 12.41% in the past 24 hours to $498.86 per token as of 2:30 p.m. EDT. Investors are excited about the prospects of a new beginning for the namesake company behind Binance Coin after the appointment of Richard Teng as CEO for Binance Singapore. Binance has grown to become the world's largest cryptocurrency exchange, but issues surrounding its ultra-high leveraged trading, derivative products, and potential hacks have received increasing regulatory scrutiny. The company has recently begun to seek more compliance with financial regulators.
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Binance Coin is directly tied to the health of the parent company due to the hyper-deflationary nature of its supply base. That's right, Binance uses its profits to burn Binance Coins every quarter, similar to buying back stock, with over $390 million BNB tokens burned in Q2 2021.
Source Fool.com
