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Tron’s Justin Sun burns TRX again! More than $670 million ERC20 tokens burnt

Priya

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Tron's Justin Sun burns TRX again! More than $670 million ERC20 tokens burnt
Source: Unsplash

On 27th August, Justin Sun, the CEO and Founder of Tron Foundation, made another announcement related to coin burn. This time, the Foundation has burnt more than $670 million ERC20 tokens.

Justin announced on Twitter:

“670,045,551.1449388 #TRX ERC20 token were burnt by #TRON Foundation.”

The coin burn is recorded to be the fourth batch of burn by the Foundation. The team has also announced that Tron has over 909 nodes around the globe. The Foundation said:

“Currently, TRON mainnet runs smoothly, there are 909 nodes around the world, block height: 1818185 (As of 16:16, August 27, SGT), token migration is still in process, meanwhile TRON will keep tronics informed, thank you for the support”

Details mentioned on Etherscan regarding the Tron ERC20 token burn | Source: Tron Foundation

Details mentioned on Etherscan regarding the Tron ERC20 token burn | Source: Tron Foundation

In addition, the coin burn is noted to be the final step of shifting from the Ethereum platform. All the ERC20 tokens accumulated by the exchanges are going to be burnt. When a coin is burnt, it means that they have been sent to an address and once sent to the address they cannot be recovered.

Before the commencement of the coin burn, the Foundation had stated that this would ‘encourage’ fair distribution of cryptocurrency. This would also control inflation and reward token holders.

The token burn has been going on since the launch of Tron MainNet. The MainNet was launched on 25th June 2018 and was completed by the Tron Independent Group [TIG] based on community consensus. In order to commemorate its Independence from the Ethereum platform, the Foundation had burnt over $1 billion which is around $50 million.

The concept of coin burn is similar to the Economics Law of Supply and Demand. The law states that low supply and high demand leads to the increases price and vice versa. Hence, when coins are burnt, the total coin which is in circulation in the market decreases. This, in turn, results with the value of cryptocurrency increasing and investors holding their coin instead of selling it as the value of the token might increase.



Mr Ted’s Crypto said:

“Yes so you burnt ERC20 Tokens, meanwhile total trx supply continues to increase. Not feeling happy about all this.”

Maneikovadzim, a Twitterati said:

“Burn 50% of all Trx”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin [BTC] surges above $5,500 and breaks major resistance level; collective market rises

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Bitcoin [BTC] surges above $5,500 breaking major resistance level; collective market surges
Source: Pixabay

Bitcoin [BTC] broke out of its sideways trend that saw coins fall after a brilliant start to April. This “break-out” is especially significant since it came days after the coin was trading sluggishly, pulling the market cap below $175 billion.

After breaking the $5,200 level on April 16, the coin held steady, showing no noticeable dips. However, it also began losing the momentum it had gained when it rose by 15 percent on April 2. Many saw the past week as Bitcoin losing steam, opining that a drop to as low as $4,000 would manifest. This pessimism coupled with the delisting dilemma saw the global market decline by 3.31 percent over the past weekend.

Given this backdrop, the present Bitcoin price incline was even more bullish for the collective market. Further, this was not just an effort to shrug off “sideways bears,” but instead, two key levels were broken in order to usher a collective market rise and sustain BTC bullishness.

Source: Trading View

RESISTANCE

The first, as indicated by eToro’s senior market analyst Mati Greenspan, was the resistance level of $5,350. When Bitcoin began to consolidate following the early April high, Greenspan stated that if the BTC price were to punch above the aforementioned level, it “would likely serve as confirmation that we’re pushing higher and will lead to further buying pressure.”

Greenspan stated that the $5,350 level acted as a major support level throughout 2018. Hence, it is incredibly important that Bitcoin surge above it in the next rise to consolidate buying pressure. Another important point to signal the coming of a bullish market was the 200-day moving average which Bitcoin has stayed above since the April 2 rally.

PSYCHOLOGY

The other significant level for the collective market is Bitcoin’s ascendance over $5,500, which it managed courtesy of this rally. Many, including Greenspan, pegged $5,000 as a key psychological level for the coin and hence, the rise above $5,500 less than three weeks after $5,000 was broken will bring back optimism to the BTC market.



Further, as was seen in the April 2 rise, the Bitcoin pump resulted in the king coin increasing its market dominance. At the close of March, Bitcoin was edging closer to losing the majority. However, the rally saw its share increase to 52.4 percent within a day. Following this recent 4.61 percent increase against the US Dollar, the king coin’s dominance increased to 53.2 percent.

Given the elasticity of the collective market to changes in Bitcoin’s price, the market was awash in green as Bitcoin broke the resistance and psychological levels. Amid this bullish charge, some coins stood out for their above-average gains, which included Bitcoin Cash [BCH], Cardano [ADA], EOS [EOS], Litecoin [LTC], and the exchange-ousted Bitcoin SV [BSV].





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