A flood of memecoins has hit the cryptocurrency market, but token burning mechanisms must be changed to improve
Justin Sun
Justin Sun, billionaire of Tron and SunPump, announced changes to the burning of tokens, starting from this Tuesday (3).
According to him, the change will occur at the request of the community that interacts with memecoins. Thus, he hopes that an improvement in the liquidity of the new meme cryptocurrencies will attract even more transactions to his platform.
Created in August 2024, SunPump has attracted the attention of memecoin speculators, and has led Tron to become one of the 10 largest in market cap.
Tron Billionaire Justin Sun Announces Changes to SunPump After 70,000 New Meme Cryptocurrencies Hit the Market Through the Platform
Equating his SunPump platform with the Shiba Inu (SHIB) cryptocurrency, Justin Sun has stated that he will modify the LP token burn, at the request of the community.
According to him, burning makes the platform regulator-friendly and improves token liquidity. Even so, he confesses that it becomes a more difficult concept to explain to those who do not understand the concepts.
In any case, at the request of the community, Justin Sun declared that he would begin the changes immediately, in a statement on social media.
“Regarding the issue of revenue buyback and burning for sunpumpmeme, the community previously suggested burning liquidity LP tokens because this approach is used by traditional meme tokens like SHIB.
Burning LP tokens has several advantages, including increasing the liquidity depth of the token, allowing the burned liquidity to still be utilized, and being more regulator-friendly. However, there is one downside: it is complicated to explain. Many community members do not fully understand what burning LP tokens means, which can lead to misunderstandings.
After discussion, the community agreed that a better approach would be to directly implement a 100% on-chain buyback and burn process. This method is easier to verify as all records of the burn of funds will be on-chain, making it simple and eliminating the need for any explanations. I personally believe this may be the best approach and will be implemented starting today.”
Justin Sun publishes changes to SunPump platform after Tron community generates new cryptocurrencies en masse. Source: Social media, image shared with the report.
Lots of quantity, little quality
Dune data consulted by Livecoins on September 3, 2024, shows that new cryptocurrencies on the Tron network arrived en masse with SunPump. This is because, since the platform began allowing the arrival of memecoins, 73 thousand new cryptocurrencies have emerged in less than a month.
SunPump has already created over 73,000 cryptocurrencies from August 2024 to early September of the same year. Source: Dune.
But the immense quantity of memecoins does not guarantee quality for speculators. On Reddit, for example, an investor revealed last Monday (2) that he had already created 2 memecoins, but lost 150 dollars in less than 1 hour.
“Has anyone made any money flipping a Tron SunPump coin? I flipped 2 the other week and lost about $150 total in about an hour. I see them flipping and cratering. So is anyone making any money flipping these and HOW?”
Ultimately, it is unclear whether Justin Sun's changes will return quality, but memecoins released on his platform do not guarantee quality to projects.
