Binance Coin’s (BNB) Supply to be Increased on Coinmarketcap says CEO Changpeng Zhao
CEO of Binance just tweeted that the unlocked balances of the creator’s addresses will be moved which will end up correcting the supply of $BNB from 112,443,301 to 144,443,301 BNB on Coinmarketcap.
Changpeng Zhao Tweeted:
To fix $BNB circulating supply the way CMC calculates, we will move the unlocked balances out of the creator's addresses over next few days, in small txs as to avoid big fluctuations as suggested by CMC. And reach the final correct circulating supply of 144,443,301 $BNB on CMC.
— CZ Binance (@cz_binance) September 22, 2018
So during the creation of a token like BNB, the creators, in this case, Binance had tokens locked up in certain creator addresses. So it means that the circulating supply shown on Coinmarketcap is inaccurate as the creator tokens were not considered.
Does it mean that the price will take a hit?
So now if the circulating supply is increased because of the unlocked creator tokens, will the price decrease?
Not exactly, instead the market cap of $BNB should increase keeping the price the same because the circulating supply was always 144,443,301 BNB but was not represented on Coinmarketcap.
A Twitterati replied to CZ’s tweet with a SELL SELL! Gif to which Cz replied:
lol, this tweet is precisely to avoid people mistakenly panicking (and sell). There will be happy buyers, I am sure. But make your own judgements. Nothing changes other than moving a few coins to different addresses
So basically nothing is changing in terms of price, just the supply number representation on Coinmarketcap. So at the current price of $10.23, the market cap should technically increase from a present $1.15 Billion to $1.477 Billion which will put BNB to the 14th place ahead of NEO (Potentially 13th place ahead of Tron given the price increases a bit) from its current 16th position.
A Twitterati Josu said: “Market cap is going to increase, and probably put BNB on the 13th position, displacing TRX. It may certainly rally too.” to which CZ replied with “precisely”.
The Binance token $BNB has been one of the best performing and relatively stable coin this year, with a clear utility in the largest exchange in the world.
Image Source: Coinmarketcap
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