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Tokenburn

What is token burning in crypto?Understanding Token Burning in Cryptocurrency: A Comprehensive Guide What is Token Burning? Token burning is a crucial strategy in the volatile realm of cryptocurrencies, where assets lack real-world backing. Developers employ innovative approaches to maintain long-term price stability and incentivize investors. One such method is burning tokens, which involves removing coins from circulation. This action reduces the total supply, increasing scarcity, and potentially boosting the value of each remaining coin. Why Do Projects Burn Tokens? There are several reasons why cryptocurrency projects may choose to burn tokens: Scarcity and Value Appreciation By reducing the supply of tokens, projects can create scarcity, leading to potential value appreciation for the remaining tokens. This can incentivize holding and discourage selling, contributing to price stability and growth. Reward Mechanisms Some projects use token burning as a reward mechanism for users or participants. For example, platforms may burn tokens as part of a buyback program, where they purchase tokens from the market and then burn them, effectively reducing supply and rewarding holders. Economic Alignment : Token burning can align economic incentives within a project's ecosystem. For instance, platforms may allocate a portion of transaction fees to token burning, ensuring that stakeholders benefit from increased token value as the supply decreases. Coin Migrations : During blockchain upgrades or migrations, projects may burn old tokens that are being replaced by new tokens on a different blockchain. This process helps maintain continuity and security during transitions. Examples of Token Burning: Binance Coin (BNB): Binance, one of the largest cryptocurrency exchanges, regularly conducts token burns of its native token, BNB. A portion of the trading fees collected on the Binance platform is used to buy back BNB from the market and subsequently burn the tokens, reducing the total supply over time. Ethereum (ETH): Ethereum has proposed a shift to a proof-of-stake (PoS) consensus mechanism with Ethereum 2.0. As part of this transition, ETH holders can lock up their tokens in the new Ethereum Beacon Chain, effectively removing them from circulation and reducing supply, akin to token burning. TRON (TRX): TRON Foundation has conducted multiple token burns of its native token, TRX, to manage supply and support token value. These burns are often announced publicly, providing transparency to the community. Crypto Exchanges: Some cryptocurrency exchanges conduct token burns of their exchange tokens as part of periodic events or promotions. This practice can benefit token holders by reducing supply and potentially increasing token value. Does burning impact token price? Token burning can indirectly affect token value. Reducing circulating coins typically generates positive sentiment, potentially increasing asset popularity and value. While not the primary price driver, decreased supply can create scarcity and lift remaining token values. However, many factors influence token price, such as market conditions, sentiment, and project reputation. In conclusion - Token burning remains a potent method for enhancing and stabilizing crypto asset value. Transparency and stability through burning incentivize investor trust, contributing to sustained price levels. Despite not guaranteeing immediate value hikes, burning offers long-term benefits, especially for projects with substantial user bases. Other advantages include community reinforcement and inflation control, making token burning a strategic practice in the cryptocurrency landscape. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
Education
by Crypto4light
Justin Sun's $50M HT Token BurnEvery move by influential figures can send ripples through the market. Justin Sun, renowned for his strategic maneuvers, recently set tongues wagging with a bold announcement: a staggering $50 million worth of SEED_ALEXDRAYM_BIGMAC:HT tokens have been consigned to the flames in a calculated token burn. This calculated step has effectively slashed the total supply of SEED_ALEXDRAYM_BIGMAC:HT tokens, leaving a leaner 110 million in circulation. Sun's decision to wield the torch of token burn isn't merely a spur-of-the-moment gesture; it's a meticulously plotted move within his grand scheme to recalibrate the supply-demand balance of SEED_ALEXDRAYM_BIGMAC:HT tokens. With a reduced supply, Sun aims to sow the seeds of scarcity, potentially stoking the flames of SEED_ALEXDRAYM_BIGMAC:HT token value. This strategic dance aligns seamlessly with his relentless quest to optimize the performance and market standing of his cryptocurrency ventures. As one of the most influential players in the cryptocurrency arena, Sun's actions resonate far and wide, leaving an indelible mark on investor sentiment and market trends. The aftermath of this token burn is poised to trigger a whirlwind of speculation and scrutiny from investors, traders, and enthusiasts alike, all eager to decipher its implications for the SEED_ALEXDRAYM_BIGMAC:HT token ecosystem and the broader cryptocurrency landscape. In the wake of Justin Sun's incendiary move, fervent discussions have erupted within the cryptocurrency community, with analysts donning their prognosticator hats to forecast the long-term trajectory of SEED_ALEXDRAYM_BIGMAC:HT token value and utility. Many seasoned observers posit that the diminished token supply resulting from the burn could herald a new era of scarcity. With a dwindling pool of SEED_ALEXDRAYM_BIGMAC:HT tokens up for grabs, the immutable law of supply and demand suggests that the value of each token could ascend over time. This uptick in value might allure investors seeking a hedge against inflation or simply a potential windfall in the form of capital appreciation. But the ramifications of this token burn extend beyond mere price dynamics; they permeate the very fabric of SEED_ALEXDRAYM_BIGMAC:HT token utility and ecosystem. As the supply dwindles, the relative scarcity of SEED_ALEXDRAYM_BIGMAC:HT tokens could serve as a catalyst for heightened adoption and utilization, particularly within decentralized finance (DeFi) arenas or other platforms leveraging SEED_ALEXDRAYM_BIGMAC:HT tokens for a plethora of functions. Amidst the cacophony of reactions reverberating across the cryptocurrency community, a kaleidoscope of sentiments emerges. Some investors embrace an aura of optimism, viewing the reduction in SEED_ALEXDRAYM_BIGMAC:HT token supply as a harbinger of potential price appreciation in the long haul. Others tread cautiously, cognizant of the nuanced interplay between market forces and the whims of cryptocurrency moguls like Justin Sun. As the dust settles and the cryptocurrency community braces for the next chapter in Justin Sun's saga, one thing remains abundantly clear: the fervent dialogue sparked by this token burn underscores the ever-evolving nature of the cryptocurrency landscape, where every move is scrutinized, dissected, and met with a symphony of reactions. In this arena of volatility and opportunity, Justin Sun's $50 million SEED_ALEXDRAYM_BIGMAC:HT token burn stands as a testament to the enduring allure and intrigue of cryptocurrency markets.
by DEXWireNews
A Dive into the Burn of 8,740,957 $CAKE Tokens worth $25 MlnPancakeSwap's Fiery Transformation In a surprising turn of events, PancakeSwap, one of the leading decentralized finance (DeFi) platforms on the Binance Smart Chain (BSC), has just executed a massive token burn, incinerating a staggering 8,740,957 NASDAQ:CAKE tokens, equivalent to a jaw-dropping $25 million. This unprecedented move has left the crypto community buzzing with speculation and excitement. The Burn Event: On 8th January, 2024, PancakeSwap's blockchain explorer, BscScan, unveiled a transaction hash (TxID: 0xdddb22d7af19a36fa92342a9bc5c2bf82a6e3b8a843abcfbd45ac261c5e7ebb8), providing irrefutable evidence of the burn. The burn event is a strategic move by PancakeSwap to reduce the total supply of NASDAQ:CAKE tokens, thereby potentially enhancing their scarcity and value. Unpacking the Numbers: The burned 8,740,957 NASDAQ:CAKE tokens represent a significant portion of the total supply, and with the current market capitalization of PancakeSwap, this move could have profound implications. The token burn is not only a testament to the platform's commitment to its community but also a strategic maneuver to counter inflationary pressures and maintain a healthy ecosystem. Implications for NASDAQ:CAKE Holders: For existing NASDAQ:CAKE holders, this burn event may result in a positive impact on the value of their holdings. The reduced supply could potentially lead to increased demand, fostering a more favorable environment for price appreciation. The burn sends a clear signal to the market that PancakeSwap is actively managing its tokenomics to create long-term value for its community. Community Response: The crypto community, always quick to react to significant events, has expressed a range of emotions following the news of PancakeSwap's massive token burn. Social media platforms, forums, and chat groups are buzzing with discussions, analyses, and predictions about the potential market response. Some see it as a bullish signal, while others are eagerly awaiting PancakeSwap's official statements regarding the motivations behind the burn. PancakeSwap's Vision: PancakeSwap has been a pioneer in the DeFi space, offering a user-friendly platform and a wide array of features, including decentralized trading, staking, and yield farming. The recent token burn aligns with the platform's commitment to innovation and sustainability. It highlights PancakeSwap's dedication to creating a robust and valuable ecosystem for its users. Conclusion: PancakeSwap's decision to burn a substantial number of NASDAQ:CAKE tokens has injected a new level of excitement and anticipation into the crypto community. As the aftermath of this burn event unfolds, all eyes are on PancakeSwap to provide further insights and guidance on the potential impact on its ecosystem. The journey ahead for NASDAQ:CAKE holders promises to be an intriguing one, filled with opportunities and challenges as PancakeSwap continues to shape the future of decentralized finance on the Binance Smart Chain.
CRYPTO:CAKEUSDLong
by DEXWireNews
Binance Burns 4 Billion Terra Luna Classic (LUNC) TokensBinance burns almost 4 billion Terra Luna Classic (LUNC) tokens, with total LUNC burn by the community reaching 83 billion. The world’s largest crypto exchange Binance burns almost 4 billion Terra Luna Classic (LUNC) tokens in the 16th batch of the LUNC burn. With the latest LUNC burn, the total LUNC burn by the crypto exchange to date reaches more than 43 billion, 52% of the total tokens burned by the Terra Luna Classic community. Traders didn’t immediately respond to the Binance burn. Binance’s Net Terra Luna Classic (LUNC) Burn Reaches 43 Billion Crypto exchange Binance sent 3.90 billion Terra Luna Classic (LUNC) tokens to the burn address, as per the transaction on December 1. Binance continues contributing to the community’s LUNC burn campaign to reduce the LUNC circulating supply after the exit of Changpeng “CZ” Zhao as Binance CEO. Notably, the 16th batch of the LUNC burn mechanism is for the period October 31 to November 29. With the latest burn, Binance has burned over 43 billion Terra Classic tokens from trading fees on LUNC spot and margin trading pairs. The community has burned nearly 83 billion LUNC tokens. In November, Binance burned 760 million Terra Luna Classic (LUNC) tokens, the lowest till now. The burn rate significantly declined amid FUD, reduced developer activity, and a fall in LUNC trading volumes on the exchange. However, the massive jump in trading volumes this week resulted in this huge LUNC burn the community hasn’t seen in the last few months. Binance launched a USTC perpetual contract and new USTC trading pairs FDUSD and TRY, which contribute massively to the exchange’s trading volume. Terra Luna Classic ecosystem tokens fell in the last 24 hours, with LUNC and USTC giving up some recent gains due to profit booking in the broader crypto market. However, LUNC price jumped 65% this week, with the price currently trading at $0.000142. The 24-hour low and high are $0.000114 and $0.000121, respectively. However, the trading volume has decreased in the last 24 hours. Meanwhile, USTC price rallied 350% this week, with the price currently trading at $0.051. The 24-hour low and high are $0.050 and $0.055, respectively.
Long
by DEXWireNews
BNB short-term GrowHi friends. Despite a bad news for inflation and us CPI comes 9.1 but we can see a short term grow in market i think. in that case yesterday Binance burns about 450 milion $ worth of BNB. and we are in a good support level. in weekly timeframe we have 2 Resistance ahead: one at 250$ and one at 315$. if we surpass first level , we reach second simply. 315$ is also the median of Danchian channel. hope you like my analisys. please share me your opinion in comment. i will be happy. thank you all for reading my idea.
Long
by TraderAmin-KZ
2
Bitpanda BEST investment updateIn this link you can find all the related information about the tokenburn. Overall ~ 11.000.000 tokens were burned (thats about 2% of the current circulating supply and 1% of the overall supply) and new features for BEST were added. blog.bitpanda.com This tokenburn event will now continue evey three months until 50% of the total supply is burned. The chart shows that due to very overextendet indicators and expectations of some investors, the actual valuation of the BEST token dropped for now, down to the golden ration 0.618 fib support. This level is the next bigger supportive confluence zone. Next to the fib retracement level we can see the daylie bollinger mean line (dotted line) that acted as resistance in the downtrend and the 200 day SMA line. The investors now have to decide how to value this Token correctly. My personal bias over a longer time period of time is bullish. Bitpanda is still one of the biggest austrian startups and the deflationary mechanism of the Tokenburns as well as the overall growing userbase on bitpandas plattform supports my thesis. The tokenburns now act as quaterly milestones and will be underlined by further developement progress of bitpanda. Thanks for reading my updates yours F P
B
by passio
Bitpanda BEST investment updateAccording to my previous analysis Bitpands own Ecosystem Token broke out, due to the earlier release of the the first Token burn on 30.01.2020 in the coming week as well as the announcement of new perks/features for BEST holders, next to the high fee reduction bonus. If the actual high is really in there is huge support at 0.0655 € . If this is an impulsive wave to the upside i estimate higher highs. People had good time to accumulate at lower levels (under ICO value) and are potentially now focusing on increased token price performance. Further updates in the future. Greetings F P
BLong
by passio
Ready to be pushed by Bitfinex whales? Eidoo!Last week has been bad, but, the circumstances is perfect for a Finex run. I am betting on Eidoo, and looking for 10-20x!! Fundamental On January 11 I told my trade group (Koinworld) about Eidoo (EDO). We got in at the fib line and saw a good push, sadly , the market brought it back down and we are back to where we started. Aventus had to go, and I replaced my portfolio with Eidoo . (A finex coin for a finex coin) (My-Portfolio) So what makes Eidoo a good buy? For one, Bitfinex has finally opened up their registration process. New money should enter the exchange. The problem is that they only opened up for people with 10k worth of FIAT or Crypto. That's not a crazy amount, but it definietely excludes a lot of the fishes . Which lowers my target expectations a bit. Eidoo is on Binance as well, so considering the marketcap ( 115M ), it's looking very good on the exchange front . Quote's from Eidoo website: "We want to make only one application, extremely easy to use, and bring the crypto world to the end user; a bridge towards worlds that at this time, as a user experience, are not so close to one another." That's the basic vision of the Eidoo team. They are not looking for some technical breakthrough. They want to create the killer application that can unite mainstream users and the technology that crypto brings to the world. "Facing an ever dynamic world, both in technology and application user-friendliness, no good solutions that exist can last forever." When it comes to crypto and general technology you have to be open for change , and you have to be on top of it all the time. Always evolve. If we have a look at Eidoo's roadmap we can see some promising stuff for this quarter, making this a very solid time to invest. First off we have the Bitcoin Wallet , and then there's the hybrid exchange as well! Check roadmap. Some pump-worthy releases. Recently Eidoo put out their ICO engine. Where ETHLend did their funding ( right now they are twice as big in marketcap ), and we have Ubiatar launching very soon as well. What's really cool about this is that Eidoo destroys 50% of its income, making the supply lower and Eidoo investment more attractive . On Dec.14, Eidoo released the blog post, announcing the burn of 500k Eidoo ! That's only from ETHLend ICO , Aidcoin Pre-Sale and a few private sales . Very impressive. If Eidoo keeps getting ICO's on their platform and attracts a larger userbase , we could see some serious supply being taken away from the market. This will automatically make the price go up over time. Making a long story short. Eidoo could very well be one of the next big pumps . I'm taking this short/medium term bet. Technical The FIB I am focusing on here is the run from 7 December to 9 January . We can see the 4.618 goes to 25 USD , which would be about a 10x from Eidoo's sideways action at the bottom. When it comes to crypto, 10-20x is the normal range from bottom to top on a pump. I always like to be conservative when picking targets, so I am looking at the lower end. Buy on trendline, and look out for heavy resistance at 10 USD.
ELong
by Kryptokelly
60