On July 12th, Coin An announced that it had completed the eighth quarterly destruction of BNB, with a total of 808888BNB (worth $23838000) destroyed. However, unlike in the past, the BNB destroyed this time comes from the BNB share held by the Coin Security team
On July 12th, Coin An announced that it had completed the eighth quarterly destruction of BNB, with a total of 808888BNB (worth $23838000) destroyed. However, unlike in the past, the BNB destroyed this time comes from the BNB share held by the Coin Security team.
At the same time, Coin An also stated that starting from the eighth destruction, the team's share of BNB will be abandoned, and the team's share will be added to the BNB quarterly destruction plan until a total of 100 million BNBs are destroyed.
As soon as the news came out, there was no major surprise in the coin circle, especially among the leaders of the three major exchanges, who launched a coin circle tearing war no less than that of the entertainment industry.
(Image source: Weibo)
Speaking of it, the "repurchase and destruction" of platform coins is not something new. Especially since 2019, repurchase and destruction have become an essential means of controlling deflation in platform currency. So why did Coin An cause such dissatisfaction this time?
Regarding the "repurchase and destruction" of platform coins, we can take a look at how Coin An operated before. When BNB was first launched, its white paper clearly stated that "BNB is repurchased at 20% of the company's quarterly profit, and the repurchased BNB is directly destroyed." This is also the basic practice for most platform coin repurchases to be destroyed.
However, during the eighth destruction of 80 million BNBs, Coin An did not follow the rules outlined in the white paper and instead arbitrarily modified the rules. Afterwards, when faced with huge controversy, he also stated, "Repurchase is not important, what matters is how much has been destroyed. Only by reducing the total amount can everyone's currency appreciate
However, if it is truly as great as Coin An claims, why would it still be bombarded by multiple parties in the industry? Obviously, this is just a grandiose statement, seemingly for the benefit of everyone, but in reality, it is a disguised monetization.
The founder of Huo Coin, Li Lin, said, "(Coin An) means that once the circulation is over, the team can directly destroy what is in their hands, which means there is no need for repurchase. According to the data, they can deduct it directly from the reserved funds. If everyone thinks this plan is good, it would be great. It reduces repurchase costs by several hundred million yuan every quarter." He also said, "If everyone thinks this method is good, next time we willFire coinDo the same
Ms. He Yi, the CMO of Coin An, also responded by sending multiple Weibo posts, stating that the traditional 20% share of BNB's profits has not changed, and the team has given up 100% of the BNB they should hold to ensure market stability. There is a strong stance that the interests of the Ningshe team should also serve the interests of users, and everyone can consider it for themselves.
At first glance, it seems that due to the "abandonment" of the management team, the number of BNBs destroyed quarterly will increase, and the total circulation of BNBs will further decrease, forming a favorable market situation. But in fact, when Coin An destroys the BNB held by its management team, it no longer fulfills its previous obligation to repurchase and destroy BNB from the circulation market.
Therefore, the change in the repurchase and destruction rules this time does not fundamentally bring any benefits to the circulation scale of BNB, but may instead become a tool for its team to seek personal gain, and even have a negative impact on BNB's market circulation.
Some people have discovered that Coin An has secretly changed the official promise of "repurchasing BNB with 20% profit" in the initial white paper.
And what exactly did Coin An give up with his insistence on 'giving up'? The editor only saw a disregard for the spirit of the contract. As a leading blockchain enterprise, with the sixth largest crypto asset in the global market value ranking, attempting to fool the public's intelligence and undermine the long-standing consensus is truly unacceptable, let alone convincing people that it will have better development.
The value of a platform currency is not only determined by deflation, but also by fundamentals. Time will prove everything, I hope the coin won't lose its heart.
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