Binance Burns $450M 🔥

GM. This is Degen Scoop. It’s Tuesday, here’s the scoop:

• Binance Burns $450M 🔥

• Larry Fink: “Pent Up Interest in Crypto” 🪅

• Uniswap Adds Fee Inviting Outrage 🫰

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Binance Burns $450M in a Token Burn of BNB

Binance conducted a planned token burn, removing over $450 million worth of BNB tokens from circulation. This involved burning just over 2.1 million BNB tokens, permanently reducing their supply. Token burning increases the value of the remaining tokens for holders by decreasing the overall supply. Akin to buybacks in TradFi, buy/burn has the upper hand in removing tokens (shares) from the supply forever reducing the fear of future sell pressure.

BNB is the native coin of the BNB Chain ecosystem and has an auto-burn mechanism to gradually reduce its total supply to 100 million BNB. The latest token burn was carried out as part of this ongoing process, and BNB was trading at $212 with a 2% increase in the past 24 hours following the announcement. While the buy/burn mechanic isn’t perfect, it has shown to be a desirable aspect of a project’s tokenomics from users.

Larry Fink Believes There is Crypto Demand After $35B of Volume From Fake Approval News

BlackRock CEO Larry Fink addressed the false report that claimed the approval of BlackRock's iShares Bitcoin Trust ETF by the SEC, causing a brief surge in Bitcoin's price. Fink characterized the incident as an example of pent-up interest in crypto, suggesting that the market's reaction reflected a "flight to quality." It’s clear that there is interest in Bitcoin still despite the quiet market. A spot ETF will give people the ability to speculate from a TradFi vehicle such as an IRA.

The misinformation originated from a tweet by crypto news publication Cointelegraph, leading to a temporary spike in Bitcoin's price to nearly $30,000 (a 10% move), but Bitcoin quickly fell back below $28,000 after the SEC and BlackRock refuted the rumor. There were concerns that yesterday’s incident might be used by SEC Chair Gary Gensler to highlight market volatility and manipulation, potentially affecting the approval prospects for a Bitcoin spot ETF in the United States. We’re still of the belief it’s a question of when.

Uniswap Adds 0.15% Fee For Research, Still No Fees For UNI Holders

Uniswap will be introducing a 0.15% swap fee on select tokens via its web app and wallet interfaces. The affected tokens include ETH, USDC, WETH, USDT, DAI, WBTC, agEUR, GUSD, LUSD, EUROC, and XSGD. Uniswap Labs justified the fee by stating it would support ongoing research, development, and expansion in the crypto and DeFi space. The controversy lies beyond the 0.15% fee, that isn’t the issue, but rather the focus upon equity holders over token holders.

The news quickly illustrated the misalignments between token holders and equity investors. The fee switch, aimed at redirecting a portion of protocol fee revenues to $UNI token holders, has faced rejection in a recent vote, prompting debates about the sustainability and user acceptance of fees within the Uniswap ecosystem. While Uniswap is revolutionary in what it accomplished for the crypto ecosystem, the token is tainted until equity holders decide otherwise.

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.