Token burns have become quite a common phenomenon in the crypto space. This method of reducing a coin’s supply started gaining steam around 2017 and since then an umpteen number of projects have started using this mechanism.
With coins large and small, there are pieces of news floating around every day about how the developers/people from the community burn millions, billions, or even trillions of coins.
Whenever coins are burnt, they are intentionally sent to an unusable wallet address to remove them from circulation. The address, typically called a burned address, cannot be used or assigned to anyone. So, once a token is burnt, it is gone forever.
Over time, the scarcity created translates into a supply crunch and brushes off positively on the underlying asset’s price. Although this is far from a sure thing, a handful of cryptos have seen positive price movements after their tokens have burned.
What the MEME!
Shiba Inu has been leading the meme-coin pack on the burning front. In the month of January alone, over 1.32 billion SHIB tokens were burnt.
BabyDoge Coin, another prominent meme-token, has also made noteworthy strides in this regard simultaneously. Less than 7 hours back, a sizable number of tokens were burned. Shedding light on the same via a proclamation on Twitter, BabyDoge’s official handle noted,
4.8 quadrillion #BabyDoge burned!
Data from BscScan confirmed the same. The cumulative worth of all the tokens was roughly around $20 million and a transaction fee of 0.00182 billion was incurred to execute the same.
As expected, the coin’s price wasn’t impacted immediately. BabyDoge’s price has been moving horizontally of late and the same trend continued to post the burn too.
After appreciating by a meager 0.01% in the past 24-hours, this token was priced at $0.000000004224 at press time.
In the same timeframe, nonetheless, the average value of the BabyDoge tokens held by the top 100 HODLers has appreciated by almost 3%, while the value of the same has inclined by 5%.
Collectively, they’re a sign that the sentiment with respect to BabyDoge is getting favorable.