Binance Market Cap to Rise in coming Days
The founder of Binance exchange has disclosed their plan to move unlocked BNB balances out of the creator’s addresses over the coming days to fit its circulating supply on the popular market capitalisation platform, CoinMarketCap (CMC).
According to Changpeng Zhao (CZ), the move which will be done in small transactions so as to avoid big fluctuations in the token’s price is to ensure that the final correct circulating supply of 144,443,301 $BNB appears on CMC.
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
CMC reports a lower market cap for BNB because the already-unlocked BNB tokens have been reportedly sitting on one address. Going by market data from CMC, there are currently 112,443,301 BNB in circulating supply out of a 192,443,301 BNB total market supply. BNB price has had a slight drop following the announcement on Saturday Sept 22 but has since begun its climb back.
CZ claims that nothing else would change other than the movement of some coins to different addresses and that he made the tweet “to avoid people mistakenly panicking (and sell)”.
He also assumed that the move should be positive for BNB as its market cap will increase to make it go up a few ranks on the CMC chart based on the use of real circulating supply. However despite his supposed “heads up” as some tokens move to a different address, some of his followers still think otherwise.
Market cap is going to increase, and probably put BNB on the 13th position, displacing TRX. It may certainly rally too.
— Josu San Martin (@josusanmartin) September 22, 2018
this is why crypto does not get the recognition it deserves. clearly this is price manipulation sir. You shouldn't publish stuff like this. Just go ahead and fix it and stand accountable for any consequences.
— Chron (@Chron002) September 22, 2018
They consider the notice to be a possible vague excuse for the ‘creators’ to sell their BNB or to create speculation which could affect its price negatively.
The supply adjustment could be to ensure correct figures ahead of the BNB coin burn event slated for coming weeks – 2,528,767 BNB will be burnt in the fourth quarter.