Binance News: Binance Founder Owns Less Than 1% of BNB Supply

Binance founder Changpeng Zhao owns less than 1% of the BNB total supply. That is according to a new article from executives from YZi Labs, the venture firm partly owned by Zhao.

According to the article titled “BNB: The Core Engine of the Global Web3 Economy,” the token is fully decentralized and deflationary.

Binance News: Two-thirds of BNB Tokens Held by the Public

Citing data from BNBScan, the article stated that two-thirds of the BNB supply, which is around 66%-67% is held by the public. These are the unaffiliated holders, both on-chain and on centralized exchanges.

By comparison, the BNB Foundation holds 27% of the circulating supply. However, the portion of supply held by BNB Foundation is not for sale and has been set aside for programmatic burns. Binance exchange also owns 4-5% of the supply in its treasury for both custody and operational liquidity purposes.

The article stated:

“About 27% of the total BNB in circulation is held by the BNB Foundation and ring-fenced for programmatic burns (not for sale)— a transparent, on-chain mechanism that reinforces BNB’s deflationary design over time.”

It added that the largest labelled wallets holding BNB are all burn, operational, or custodial wallets. This indicates that no single entity controls a sizable percentage of the supply, a sign of low insider concentration.

BNB Tanks Despite Positive Moves

The article on BNB comes amidst the token’s struggles. Despite recent positive developments, such as Zhao’s pardon and $1.2 billion in token burns, BNB has yet to return to its peak levels.

Instead, the altcoin is down 3.7% in the last 24 hours according to CoinMarketCap. BNB is now trading around $1,102 and is at risk of falling below $1,100.

Although the reasons behind the recent drop are unclear, it is not peculiar to BNB. Other cryptocurrencies have also fallen in value, with the broader crypto market down 3.15% today, largely due to Bitcoin. Even with the decline, BNB remains one of the best-performing tokens this year, taking 56% year to date.

The bearish signals for BNB are also evident in the decline in retail derivatives interest. CoinGlass data shows that open interest in BNB dropped below $1.7 billion on October 29 for the first time since late September, indicating reduced exposure from derivatives traders.

While BNB is struggling, a memecoin named after a statue of Binance founder CZ is up 30% today. CZSTATUE soared after CZ himself warned people against buying the token, noting that he believes the creator wants to profit off his name.

Developments on BNB Chain Suggest Potential Recovery

Meanwhile, developments on the BNB Chain network suggest that BNB could be set for a rebound soon. The network has emerged as one of the leading decentralized finance ecosystems.

In October, it had the highest number of daily active addresses, reaching a peak of 3.4 million on October 13. BNB Chain reportedly controlled 61.25% of the decentralized exchanges’ volume, with BSC alone accounting for around $116 billion in the last 30 days.

Interestingly, Ondo Finance recently expanded its tokenized securities market to the BNB Chain. The move meant BNB Chain users can now buy tokenized US stocks onchain.