Binance, the world’s largest cryptocurrency exchange, has announced that it will destroy $2 billion worth of BUSD (Binance USD) that are currently idle on the Binance Smart Chain (BSC). The announcement was made via a tweet on February 22, 2023.
Later today, #Binance will burn $2bn worth of idle BUSD on BNB Chain.
— Binance (@binance) February 22, 2023
The same amount of BUSD on the Ethereum network, which was used as collateral, will then be released.
Binance USD is a stablecoin that is pegged to the US dollar and is used to facilitate trading on the Binance exchange. It is one of the most popular stablecoins in the crypto market, and its value is supposed to remain stable, unlike cryptocurrencies that experience volatile price fluctuations.
The decision to destroy $2 billion worth of BUSD is part of Binance’s effort to manage the supply of BUSD and maintain its stability. The move is expected to reduce the supply of BUSD and prevent any potential inflationary pressures.
The Binance Smart Chain is a blockchain network that runs in parallel with the Binance Chain. It was launched in 2020 and is designed to support the creation of smart contracts and decentralized applications (dApps).
The Binance Smart Chain has been gaining popularity as a low-cost alternative to Ethereum, which is known for its high gas fees.
Binance’s decision to destroy $2 billion worth of BUSD is a significant move that could have implications for the crypto market as a whole. It will be interesting to see how this move affects the price and demand for BUSD, as well as how it impacts the Binance Smart Chain and its users.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
