OKX regularly repurchases and burns tokens to decrease their availability in the open market
In a planned action between March and May, OKX crypto exchange burned more than $258 million worth of its OKB tokens. This move caused the token’s value to increase, while the overall cryptocurrency market experienced minimal fluctuations.
OKX stated in its buyback and burn report, released on Friday, that they purchased and burned a total of 5,497,312.77 OKB tokens from the secondary market during this round.
Following the release of the completed burn details, OKB tokens saw a price increase from $44 to $45. Over the past 24 hours, they have risen by 1.4%. The token currently holds a market capitalization exceeding $2.6 billion.
The buy-and-burn program was initiated in May 2019 by OKX. Under this program, OKX began purchasing OKB tokens from the original supply of 300,000,000 every three months. The frequency of purchases depended on the seasonal market conditions and operational performance.
Also Read: OKX Partners with Nomura-Backed Crypto Storage Firm Komainu as Custodian
The term “burn” refers to the permanent removal of tokens from circulation by sending them to a wallet address that is not controlled by anyone. When the supply of tokens decreases over time through burning, it can potentially result in price increases if the demand for those tokens continues to grow.
Also Read: OKX Launches Updated App for Virtual Asset Spot Trading in Hong Kong
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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