For those who don't know what it means when they talk about a Cryptocurrency burn
A cryptocurrency burn is like someone taking a portion of the existing coins and sending them to a place where they can never be recovered. Basically, those coins are taken out of circulation forever.
This is done by sending them to a special address (an inaccessible "wallet") that has no private keys, so no one can ever use them.
Why is this done?
1. Reduce supply: With fewer coins available, the remaining ones can increase in value (if demand stays the same or grows).
2. Increase the value of the coin: It's like creating scarcity, making each coin more valuable.
3. Fulfill project promises: Some projects promise to burn coins to benefit investors or maintain balance in the token economy.
Imagine you have 100 tickets to an event, but you decide to destroy 20 so that the other 80 are more exclusive and, in theory, more valuable. #TopCoinsSeptember #QuemaDeTokens
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.See T&Cs.
