Tron Just Vaporized a Huge Number of TRX – Will It Impact the Price?
Tron says it just finished burning one billion TRX tokens, as the platform celebrates the launch of its new blockchain and independence from Ethereum.
“Based on the address of TRON mainnet blockchain browser, the distribution of TRX has been shown to be 99,000,000,000, which means that the total number of TRX releases has decreased by 1 billion. As regards the Coin Burn, [Tron founder] Justin Sun stated that although it was distressed to witness the burn of $50 million worth of tokens , TRON Foundation had no turning back for the better development of TRON community.”
The burn eliminated about $40 million in tokens and lowered the overall supply from 100,000,000,000 to 99,000,000,000. But will it affect the price in the long run?
Markets work on supply and demand, so logically the burn should have an impact.
However, the coins that were burned come from the Tron foundation’s holdings and aren’t part of the circulating supply.
That means the market won’t be directly impacted by the burn, so it may not have the impact TRX holders are hoping for.
— Tron Foundation (@Tronfoundation) June 24, 2018
It also doesn’t help that Tron burned the coins in a bear market.
Right now, the markets are in a sea of red. Bitcoin is down more than 1%, Ethereum is down over 3%, and Tron is down 5%.
We’ll see if Tron’s new blockchain and coin burn help lift TRX above the overall market trend in the coming days.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin or cryptocurrency. Your transfers and trades are at your own risk. Any losses you may incur are your responsibility. Please note that The Daily Hodl participates in affiliate marketing.