- OKX successfully burnt about $26 billion worth of OKB tokens.
- The exchange carried out this burn in order to model Bitcoin’s 21 million token scarcity. This burn caused the price of the token to jump more than 2x the price before the burn.
In what feels like one of the most significant token burns to ever happen in the history of crypto, OKX permanently burnt crypto tokens worth over $26 billion. The 278,999,999 tokens destroyed are the native tokens of OKX, OKB. This very significant move can be seen as a major move in the exchange’s economic upgrade that intends to align the token with Bitcoin’s scarcity model.
OKX Token Supply Cut
Etherscan holds data of the total tokens burnt, and according to details, the tokens burnt helped the total OKB circulating supply reduce from 300 million to about 21 million tokens. Earlier in the week, it was also recorded that OKX also burnt about 65.26 billion tokens valued at $7.6 billion. These tokens were acquired through a buyback initiative by the crypto exchange.
Source: Etherscan
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Basically, this two-step burn process OKX carried out would permanently remove excess tokens from circulation; that is, those burnt would never exist again in the crypto market, and this would cause the token’s smart contract to remove both minting capabilities and manual burn mechanisms. This just goes to show that if there’s no possibility to create new OKB tokens, OKX can lock in on long-term scarcity, a move that could impact market demand for years to come.
OKX Token Burn Market Impact
The news of the supply cut caused the price of the tokens to jump significantly. The price went from $46 to $142, more than 2x the initial price, within a matter of hours before settling around $96. This rally significantly caused OKB to become the top gainer of the week among the top 100 cryptocurrencies, according to CoinGecko.
There was also a record in the rise of trading activities. Within 24 hours, OKB volume exploded by 13,000%, reaching $723 million. This rise shows both speculative interest and traders rushing to capitalize on the reduced supply and capitalize on profits.
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