Days after spending $140 million to purchase BitTorrent, Justin Sun seems to be on a spending spree as it emerges that TRON (TRX) has set aside $50 million worth of TRX to be burnt during the Independence Day celebrations. Through the official TRON Foundation blog, the amount is equivalent to 1,000,000,000 TRX at the prevailing market rates.
The coin burn will significantly lower the available tokens in the market thus creating scarcity the will make TRX more valuable. This could market the beginning of the coin traction and a ripple effect that will culminate in price surge. TRX holders have waited for long and anything that spike prices north is welcome.
In the cryptosphere, a coin burn is an action of forwarding a number of cryptocurrencies to a particular public address that possesses an unattainable private key, which of course, makes impossible the expenditure of the coins sent to that direction.
This method is employed for generating new tokens, also known as “proof of burn,” for benefitting token holders, or for destroying tokens that were not sold. In the case of Tron, as the message implies it will be used as a rewarding activity for celebrating the independence day.
“To commemorate this exciting moment, TRON Foundation will conduct a burn of 1,000,000,000 TRX all at once, which is worth 50 million USD according to today’s market price.”
By eliminating 1,000,000,000 TRX tokens, Tron will create a deficit in the supply of the coin, and this as a consequence will create a more significant demand, which of course, will have a repercussion on the value of the token, so those who hold TRX will see a substantial benefit in the short term.
Great things are coming for Tron (TRX) as its migration phase concludes, a process that is currently being supported by about 40 exchanges from all around the world. Tron, without a doubt, will see incredible traction after decoupling from Ethereum, so stay tuned (and hold tight), the coin is about to skyrocket.