🔥 Have you seen out there that "there was a burning of millions of tokens", but have you stopped to think about what that really means?
📉 Burning tokens is the process of removing cryptocurrencies from circulation by sending them to inaccessible wallets (burn wallets). This reduces the total supply of an asset — and by the old law of supply and demand, fewer available coins can mean more appreciation.
💡 It’s like a football team burning half of the tickets for an important game. What happens to the price of the remaining ones? It skyrockets.
Real examples:
Shiba Inu burned more than 500 million SHIB in a single day recently.
BNB (Binance Coin) has burned billions in dollars since 2017, as part of the plan to reduce the supply to 100 million.
Some projects automatically burn tokens with each transaction (like SafeMoon), others do scheduled burns or profit-based burns.
📌 Important: not every burn leads to a price increase. The effect depends on several factors such as volume, market, hype, and real utility of the token.
🗣️ Now I want to hear from you:
Do you invest in tokens that have a burn policy? Do you believe this makes a difference in the long run?
Comment down below and share your opinion! 👇