When you burn a digital token, the coins left will increase drastically in value because the majority of the virtual assets have a finite average number. Let’s say there are at least 16.7 million Bitcoin (BTC) in circulation when there can be only 21 million BTC out there. If you burn 1 million tokens, the demand for the cryptocurrency may stay the same, but the fall in supply could cause prices to increase.
The Burn Will Take Place After TRON (TRX) Completes its Migration
TRON’s founder Justin Sun recently took to Twitter to talk about coin burning for his crypto. He said the burning will take place after TRX token migration has been completed. Sun said all will be made known when the token becomes free, self-governed and autonomous after the migration.
A New Direction For TRON (TRX)?
TRON’s (TRX) proposed coin burning is going to mark the beginning of a new phase for the network on its Blockchain and based around its native token. After this stage, new TRX tokens will be released to exchanges, while wallets will be swapped. So, if you HODL the TRX token, the chances are high that your exchange or wallet may facilitate an automatic swap.
With TRON’s (TRX) coin burn pending, its value is sure to move upwards. As the migration of the token launches underway, we expect its demand to increase. As of press time, TRX’S token was valued at 0.045 USD, down 6.31 percent. This is expect to all change soon considering what is at hand for the network. For now, let us watch TRX. Those with investment may reap great rewards soon. However, the market’s volatility makes this a risky business. So, don’t be surprised if things go wrong.