#Bob #bnb

Burning is the process of permanently removing a certain number of coins from circulation, achieved by sending them to a non-redeemable address (Dead Wallet). This step aims to reduce the supply of the currency, which theoretically may lead to an increase in its market value.

What is the importance of Binance burning BOB?

If Binance burns a portion of its BOB coin supply, it will carry several implications:

1. Binance's commitment to the community: A step that proves the platform does not intend to manipulate the price by holding a massive share.

2. Enhancing trust in the project: Investors see burning as a positive signal for future scarcity.

3. Stimulating demand: The supply decreases, and therefore if demand remains constant or increases, prices will rise.

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Expected effects of the burn

1. Short-term effect:

A sudden price increase of between 20% to 100% depending on the amount burned and the timing of the announcement.

Increased trading volumes.

New speculators entering to benefit from the price jump.

2. Long-term effect:

If the burn coincides with real developments on the project or technical support from Binance Smart Chain, the price may stabilize at higher levels.

If nothing changes except for the burn, a price correction may occur after a short period.