• WazirX wants to boost WRX through the burn.
• Market volume on the platform increased with the fifth token burning exercise.
By the end of June, crypto exchange WazirX completed the coin-burning exercise for WRX. In this exercise, the platform burned over 7 million tokens in circulation. Each token was worth roughly $8.2 million, but it increased to 317.5 million after burning.
This is the fifth time that WazirX has performed a coin-burning exercise. A year ago, the platform burned over 3 million tokens and another 9 million cryptos in previous years.
Coin burning: How does it work on WazirX?
The existing crypto on the platform is burned from virtual traffic by sending them to a forgotten account or a black hole for crypto enthusiastic. In this way, no investor has access to the tokens; it is something that the cryptocurrency website guarantees.
Therefore, the crypto sent to an account forgot that they cannot be recovered but leaves a space for new tokens. Even the encryption platform verifies that the blockchain is removed from the token.
The Coin burning on WazirX is similar to the buyback on the stock market that companies set. These companies buy back the investor’s shares and then remove them from circulation in the financial market. In this way, this lowers the number of shares in transit, increasing the value of the company’s assets.
Ways burning cryptocurrencies helps crypto platform investors
Burning cryptocurrencies within WazirX boosts the token value and increases its popularity. Coin burning is an effective instrument to intensify engagement with the cryptocurrency market. According to WazirX, the token burning goal is to value the assets that the investor has in his portfolio.
The platform delivers on the promise that crypto has a few tokens. This increases the demand for tokens, especially Bitcoin, so highly valued that everyone wants to own.
After the coin burning on the crypto exchange, the transactions volume on WazirX increased a lot. The platform marked a milestone in its volume, trading over $14.04 billion. This is a breakthrough because the platform’s previous volume was $6.1 billion.
For the future, the cryptocurrency platform plans to do a new WRX burn to more precisely increase its demand. The cryptocurrency website will try to do a market study to see if it is convenient to carry out a new burn before the end of the year.
For now, the WRX price remains above $1.13 with a rise of 5.22 percent in 24 hours, according to CoinMarketCap. The crypto is ranked number 127 on the cryptoanalysis website.