The stock prices of OKEx and Newfire Technology Holdings in Hong Kong recorded a surge along with information that OKX plans to burn over 65 million OKB.
The cryptocurrency and technology sectors continue to strongly attract capital flows as developments related to coins and the Token burning plan positively impact the Hong Kong stock market.
MAIN CONTENT
OKEx shares increased over 26%, reaching 0.58 HKD in the latest trading session.
Shares of Newfire Technology Holdings surged over 35%, reaching 6.76 HKD.
The plan to burn over 65.25 million OKB is considered the main reason driving the market.
How did OKEx stocks in Hong Kong increase and why?
Shares of OKEx (01499.HK) rose over 26%, closing at 0.58 HKD, according to reports from the Hong Kong stock market on August 13, 2024. This growth is assessed as a positive reaction from investors to the plan to burn a large amount of OKB.
The burning of 65.25 million OKB creates pressure to reduce the circulating supply of Tokens, which may lead to an increase in the value of OKB, while also impacting market sentiment and trust in OKEx. This is a common strategy in the cryptocurrency industry to increase the value of Tokens for investors by reducing supply.
What caused shares of Newfire Technology Holdings to surge on the Hong Kong stock exchange?
Shares of Newfire Technology Holdings (01611.HK) increased over 35% to 6.76 HKD on the same day, August 13, 2024. The main momentum came from information related to OKX and the overall developments in the technology finance market in Hong Kong.
Newfire Technology Holdings is closely related to blockchain and cryptocurrency technology activities, so positive developments in this area often have a strong impact on stock prices. The rise in stock prices reflects investors' positive expectations for the cryptocurrency market's recovery and stronger development.
The plan to cancel OKB Token will create a positive effect, increasing value for investors and reinforcing trust in OKEx in the volatile cryptocurrency market.
Market analysis, August 2024
How does the burning of OKB Tokens affect the market and investors?
Token burning is a method to reduce the circulating supply, thereby helping to increase the value of the remaining Tokens. The burning of over 65.25 million OKB is a serious step by OKX to stabilize and improve the value of OKB in the cryptocurrency market.
Not only does this help balance supply and demand, but it also reduces the risk of Token inflation and strengthens trust among institutional and individual investors. The Hong Kong stock market also reacted positively to this strategy through a sharp increase in stock prices.
Frequently Asked Questions
What information is driving the increase in OKEx shares?
The increase in stock prices is mainly due to the plan to burn over 65 million OKB, helping to reduce the supply of Tokens and increase value.
Why did shares of Newfire Technology Holdings also surge?
Due to its connection to the blockchain technology sector, positive developments in the cryptocurrency market help stock prices rise.
What impact does Token burning have on investors?
Helps enhance Token value, reinforce trust, and reduce inflation risk for investors.
Does Token burning occur frequently in the cryptocurrency market?
This is a common strategy used by many projects to adjust supply and maintain value for the Token.
Do the stocks of companies related to cryptocurrency fluctuate significantly?
Typically, shares of these companies tend to be volatile depending on the movements of the cryptocurrency market and new policies.
Source: https://tintucbitcoin.com/oklink-va-newfire-technology-but-pha/
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