The tweet, which stated that $40m had gone, swept through the crypto space early this morning.
Many feared that the popular exchange had been hacked.
$40,000,000 USD, gone!https://t.co/uJh7Xl2d3O
— CZ (@cz_binance) January 15, 2018
This fear affected the market, with the Binance coin dropping almost 10% (from $23 to $19.)
CZ was quick to clear up confusion, taking to twitter for the misunderstanding:
He was in fact referencing a planned token burn.
BNB is the in-house cryptocurerrency for the Binance exchange. Users can buy the coin and receive a 50% saving on exchange fees whilst trading on the site.
Of the coins collected from fees, the Binance exchange burns 20%.
This is done to reduce the supply of the Binance coin, causing it to appreciate in value.
It’s a system that rewards users of the exchange as the platform grows it’s user base.
So far the token has jumped from 10 cents to $23 this year alone.
Tokens will continue to be burned until a total of 100 million have been removed.
This token burn, for the second quarter, saw 1,821,586 BNB removed.