Recently, Coin An quietly edited the white paper on the terms of BNB repurchase, and also deleted the clause that "the company repurchases BNB with 20% profit".Zhao Changpeng, CEO of Coin An, stated that the use of the term 'repurchase' is not accurate
Recently, Coin An quietly edited the white paper on the terms of BNB repurchase, and also deleted the clause that "the company repurchases BNB with 20% profit".
Zhao Changpeng, CEO of Coin An, stated that the use of the term 'repurchase' is not accurate. The income of Coin An is originally BNB. If BNB is sold as USDT and repurchased with USDT, it seems that this operation is unnecessary. I used this term in the white paper stage because I didn't think it out clearly. Repurchase is not important, what matters is how much has been destroyed. Only by reducing the total amount can everyone's currency appreciate. After all, a "repurchase" can still be quietly sold out and continue to flow to the market, but the total amount of circulation has not changed. Everyone has the right to destroy their digital currency in their wallets, and Bitcoin has been passively destroyed over the years.
Zhao Changpeng pointed out that this was done to clarify that Coin An did not actually repurchase BNB, but instead destroyed it.
At present, after 7 rounds of destruction, BNB has destroyed a total of 11654359 (approximately 250 million USD). According to CoinMarketCap data, Binance coin is currently the seventh largest cryptocurrency by market value.
Zhao Changpeng said, "We have also removed the description of profits." Due to the tendency of some regions to link profits with securities, some regulatory authorities in some countries have rebounded. They do not like BNB to be linked to profits, and we hope BNB can keep a distance from this. In the end, we listened to the opinions of relevant departments and removed this part of the description.
However, updating the white paper without proper procedures is inherently interesting. Zhao Changpeng said, "The white paper was updated two months ago. The destruction quantity two days ago is publicly transparent and visible to everyone. Compared to before, our actions have not changed
The source stated that this move may be related to the compliance challenge of using terms related to the securities industry. Lawyer Stephen Palley stated that if the regulatory authorities are the reason behind the Coin Security decision, then the editing (white paper) may not be sufficient to avoid further issues.
According to TheBlock's estimate, in 2019, the total profit of Coin An in the first quarter was $78 million, a year-on-year increase of 66%. This data is calculated by TheBlock based on the number of burned BNB in the seventh quarter. According to this report, a total of 830000 units of BNB were burned in the seventh quarter, equivalent to 20% of the exchange's net profit in the first quarter of this year.
The Block also pointed out that even if Coin An has not released a financial report, it can easily calculate Coin An's profits. The report also pointed out that the company's net profit in the fourth quarter of last year was approximately $47 million.
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