#BURNGMT
I am not sure if everyone is aware of these facts:
Current circulating GMT supply: 600m
Of which burnt: 150m
Current burn rate: 5m/day
Many GMT burn functions yet to be released. More users coming. Burn rate will probably go to 10m/day within the next weeks.
THE BURN
So…what? Well let’s consider a conservative calculation:
Burn rate May: 5m
Burn rate June: 7.5m
Burn rate July: 9m
This means the following available circulating supply end of month:
May: 435m
June: 200m
July: 20m (!)
August: 😱
This is conservative. If we say burn rate will increase to 10m soon, we would have
June: 150m
July: 😱
THE EXPLANATION
For those who are unaware what that means - many are new to crypto - please read this:
The market price is decided between buyers and sellers. The current price is an equilibrium of demand and supply. Basically today sellers and buyers agree that they each pay/receive 0.92$ for one GMT.
So what happens when GMT gets burnt? Burning GMT means nothing more that a buyer purchases GMT from a seller and spends it in the app. With over 400m GMT being bought in the markets, this will be a ridiculous buy pressure on the price, almost mathematically certainly resulting in a massive price appreciation. At some point you have literally nobody left who wants to sell and this will inevitably result in a higher price.
SOME COMMENTS
GMT is NOT immune against general market trends. it will follow the trend but can still outbreak / decouple. If the markets go south GMT can still go up, it will just be harder.
The lower the circulating supply the more volatile the asset will get - to the up and to the down.
The best scenario would be a crypto market rally. This would send GMT easily to ATH again.