#CryptoMarket4T
Imagine there is a cryptocurrency project called “XCoin”, and there are 100 million coins in the market. The team decided to burn 10 million coins to reduce the supply and increase the value.
What do they do?
They send these 10 million to a special address like:
0x000000000000000000000000000000000000dead
This address is owned by no one, and no one can access what is inside it. Therefore, these coins are considered “dead” or “burned”, and cannot be used again.
The result: Now the number of coins available for trading is only 90 million instead of 100 million, which may make the coin more scarce and of higher value (if demand remains the same or increases).
Imagine there is a cryptocurrency project called “XCoin”, and there are 100 million coins in the market. The team decided to burn 10 million coins to reduce the supply and increase the value.
What do they do?
They send these 10 million to a special address like:
0x000000000000000000000000000000000000dead
This address is owned by no one, and no one can access what is inside it. Therefore, these coins are considered “dead” or “burned”, and cannot be used again.
The result: Now the number of coins available for trading is only 90 million instead of 100 million, which may make the coin more scarce and of higher value (if demand remains the same or increases).