Burning crypto doesn’t involve gasoline and matches. Instead, tokens that the developers wish to burn are sent to an inaccessible crypto wallet and thus, the coin’s circulating supply is lowered. But why would anyone want to burn money? The intention is most often promotional. Namely, the fewer tokens in circulation, the higher the price of the coin. Investors are, thus, incentivized to purchase tokens before the burn takes place as they know that the price of those tokens will soon increase.
Moreover, stablecoins may burn tokens to maintain their value corresponding to fiat currencies, and some smaller coins are even using the proof-of-burn consensus mechanism instead of the more typical proof-of-work/stake mechanisms.
Apart from contests, conferences, ICOs, and the rest, we also take care to include all relevant burns in our Events Calendar. Therefore, checking the Calendar periodically could do you good if you’re planning to utilize crypto burns for some additional profit.
Try Our Digest, and get the week’s juices to your inbox. Find our latest digests here