WHAT IS TOKEN BURNING IN CRYPTO?

- It is an act of removing tokens/coins from the circulation -There is no actual burning of digital assets, it is just the way of saying it -The burning of tokens/coins is all done on the blockchain and that is visible for the public.

HOW IS IT DONE?

-Usually the tokens are sent to an address from which it can never be accessed. -The address of a digital wallet in this case -That place is a no man’s land ( there is nobody who can access that wallet) -The tokens will remain untouched forever

WHY IS IT DONE?

-It is one of those strategies to reduce the supply and make the tokens scarce -Reducing the supply is usually related to the surge in the overall price -Might not be an immediate effect on the price but it makes the asset deflationary

CONTINUED...

-Usually projects announce the burn events quite in advance and is priced-in sometimes -It is equivalent to “buying back shares” in general