CZ has destroyed the new tokens

On March 31st, CZ publicly announced the donation address and burned approximately $3.6 million worth of BROCCOLI and TUT tokens. As soon as the news broke, the prices of the related tokens skyrocketed, but not long after, they dropped again; the plot twist was too fast.

In the short term, CZ's token destruction directly reduced the circulation in the market. According to the law of supply and demand, when there is less of something, the price naturally goes up. There have been many projects in the past where the price increased after token destruction.

However, this time is different; the token price went up and then down, indicating that some investors are not confident and dare not chase the high prices, while others who made a little profit quickly ran away, causing the price not to keep rising.

Looking at it from a long-term perspective, CZ's token destruction is actually a preventive measure for the market, making everyone feel that these tokens will be scarcer in the future. If a large number of new tokens do not flood in later and the project itself is useful and can attract users, then over time, the value of the tokens may gradually become apparent.

Recently, the focus has mostly been on internal sharing, so friends I’ve met should pay more attention.