Binance Coin, or BNB, is the only major cryptocurrency outperforming bitcoin this year, but its namesake exchange is facing new concerns around increased competition, police raid rumors, and its “burning” practice.
The Binance exchange faced new scrutiny after it said in November it has no “fixed offices in Shanghai or China” following reports of a police raid in the country, Bloomberg first reported.
The exchange also destroys, or “burns,” a portion of BNB coins in circulation each quarter as part of a plan to slash supply in half.
Though Binance buys the coins off investors before destroying them, the practice likely serves as a factor in BNB’s surge in 2019 and demand may wane once the burns reach their goal.
BNB’s popularity as the leading exchange token now faces opposition from new firms looking to corner the initial-exchange-offering market.
Watch BNB trade live here.
Binance Coin is the only major cryptocurrency outperforming bitcoin this year,…