🔥 Crypto Education: What does it mean to "burn" cryptocurrencies?
Token burning is a process in which a portion of a cryptocurrency is permanently removed from circulation.
This is achieved by sending them to a special wallet (called a burn address) that no one can use.
🔑 Why is it done?
📉 Reduce supply: with fewer tokens available, scarcity increases.
💹 Potential impact on price: if demand remains the same or increases, the token's value could rise.
🛡️ Project strategy: many use it as a mechanism to instill confidence in the community and balance the market.
👉 Example: $BNB , the Binance token, performs periodic burns to maintain its value over time.
In summary: burning cryptocurrencies = making them disappear forever.
💬 What do you think of this practice? Do you believe it truly helps the price or is it just marketing?
