A historic token burn is sending this crypto sky excessive.
The crypto token OKB (OKB 120.78%) is exploding as we speak, up 121.8% in the final 24 hours as of three:45 p.m. ET, having gained as a lot as 192.3% earlier in that interval. The leap comes as the S&P 500 and Nasdaq Composite have been comparatively flat.
The native token of the cryptocurrency exchange OKX, OKB simply noticed its provide lower in half in what’s considered one of the largest token burns in crypto historical past.
Huge token burn drives OKB greater
OKX will execute a one-time burn of roughly 65.26 million OKB tokens value about 7.6 billion by sending them to an unreachable pockets. It will successfully lower the whole provide of OKB in circulation by 52% and completely cap it at 21 million.
The token worth instantly soared after OKX introduced the transfer, from about $46 to a excessive of $142 earlier than retreating to its present stage of about $104. Buying and selling quantity spiked 13,000% as holders tried to capitalize on the upcoming supply shock.
Picture supply: Getty Pictures.
The burn is an element of a bigger transfer by OKX to maneuver its operations from Ethereum‘s major blockchain and onto its native L2 layer known as X Layer. The transfer will assist lower prices and pace up transactions.
The token can also be benefiting from broader bullish sentiment in crypto, pushed by as we speak’s huge IPO of the Peter Thiel-backed trade, Bullish.
Do not depend on this to proceed
A burn of this scale just isn’t going to occur once more, and buyers should not leap into OKB anticipating one other one to observe. I might keep away from shopping for this crypto and lots of area of interest altcoins prefer it. For buyers in search of publicity to crypto, follow the “OGs” like Ethereum and Bitcoin.
Johnny Rice has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Bitcoin and Ethereum. The Motley Idiot has a disclosure policy.
