Binance CEO Changpeng “CZ” Zhao announced on Sunday that the Binance team has burned more than 16 million BNB (ERC-20) tokens. Crypto exchange Binance is converting the ERC20 version of BNB to the native BEP2 version after the launch of the BNB blockchain. BNB price rallied nearly 2% to reach a 24-hour high of USD 315.

Binance Converts 16 Million BNB (ERC-20) to BNB (BEP2)

Binance CEO “CZ” in one tweet on January 29 said that the Binance team will be transferring/burning large amounts of BNB tokens in the coming hours. He urged critics to avoid spreading FUD after noticing these on-chain transactions.

Burning is linked to converting the ERC20 version of BNB to the native (BEP2) version. Since the launch of native BNB blockchains, Binance has been converting BNB (ERC20) tokens held by some holders. Recently, Binance announced that about 16 million BNB (ERC20) tokens will be deposited into a Binance wallet.

Etherscan on-chain data confirms a burn transaction from the ‘Binance 8’ wallet at 07:59 AM on January 29. Also, the BNB Chain Explorer reveals a burn transaction of 16,186,608 BNB tokens, with a transaction fee of only 0.000075 BNB.

Crypto Twitter responds to CZ’s tweet and appreciates the transparency of crypto exchange Binance. Burning these ERC20 BNB tokens will not count towards the quarterly burn or affect the total circulation of BNB.

On January 17, Binance burned 2,064,494.32 BNB tokens in its 22nd quarterly BNB token burn. Binance uses the Auto-Burn system to reduce the total circulating supply to 100,000,000 BNB.

BNB Token Price Jumps After Burn

After the burning of 16,186,608 BNB tokens by the Binance team, the BNB price reached a high of $315. The BNB price is up almost 2% in the past 24 hours with the price currently trading at USD 312. The 24-hour low and high are at $304 and $315 respectively.

Meanwhile, trading volume has fallen over the past 24 hours, indicating that a did not react immediately to the BNB fire. The crypto market continues to trade sideways ahead of the US Federal Reserve’s February 1 rate hike decision.

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