Telegram Airdrop Tokens Worth $4 Million to be Burned: Why?

Tomorrow, October 9, Dogs (DOGS) and Notcoin (NOT) will jointly burn $4 million worth of tokens that have remained unclaimed since both projects distributed tokens in Telegram airdrops.

This event has sparked speculation about the potential impact on their respective prices. As the community awaits this moment, BeInCrypto examines how the dynamics of demand and supply could affect NOT and DOGS.

Both Notcoin and Dogs have decided to burn their tokens after receiving the green light from the community. To encourage participation, the official channels of these Telegram-native projects announced that the event will be streamed live on X (formerly Twitter) at 1 p.m. UTC.

For context, projects engage in token burning by permanently removing tokens from circulation to enhance scarcity and potentially increase the long-term value of their cryptocurrencies. In total, DOGS will burn 4.8 billion tokens, while Notcoin will contribute the remainder, bringing the total burn to approximately $4 million

However, it is important to mention that Dogs and Notcoin did not launch around the same period. While Notcoin distributed over 80 billion tokens in Telegram airdrop in June, Dogs gave out about 400 billion tokens to eligible users. 

Currently, DOGS changes hand at $0.00072, 55% down from its launch price. Notcoin’s price is down 46% from its all-time high. Despite this, the Weighted Sentiment around the projects has jumped, suggesting that the broader community is bullish about the event.  

Read more: What Are Telegram Mini Apps? A Guide for Crypto Beginners

Meanwhile, a DOGS representative spoke to BeInCrypto regarding the recent decision surrounding their event. The representative clarified that the decision-making process was transparent, with every token holder given the opportunity to participate.

However, they noted that there was a collective decision not to burn all unclaimed airdrops, indicating that this choice was made with input from the community and based on a majority consensus.

“Instead of opting for a short-term gain by burning all (or at least a higher proportion of) unclaimed tokens — which would have likely boosted immediate value — our community voted to allocate a significant portion of these tokens to charitable causes,” the spokesperson told BeInCrypto.

DOGS and NOT Prices Target Breakout

A look at the 4-hour chart shows that DOGS’ price is attempting to rise above the descending triangle, characterized by a flatter horizontal trendline and a descending one. When the price falls below the horizontal trendline, the token in question could undergo another correction.

On the other hand, if the price breaks above the descending trendline, a rally occurs. As seen below, DOGS’s price is far above the horizontal part and could rise past the triangle. The Relative Strength Index (RSI), which measures momentum, also backs this prediction as it is above the zero signal line.

Should this remain the same after the token burn, DOGS could jump toward $0.00088 and likely hit $0.0010 afterward. The prediction might, however, be invalidated if the token drops back to the horizontal line at $0.00068.

Meanwhile, Notcoin’s market structure on the daily chart is similar to DOGS’ technical setup. From the chart below, NOT’s price is looking to break the $0.0085 resistance. If successful, Notcoin’s price could jump toward $0.11 and eventually $0.014. However, if the token fails to rise above the overhead resistance, a decline to $0.0072 could be possible. 

Read more: Top 9 Telegram Channels for Crypto Signals in October 2024

In the meantime, the Dogs team noted that it would donate the remaining 6 billion unclaimed Telegram airdrop tokens to charitable causes related to children and animals.

“All the donations made have always been and will always be clearly presented to the community ensuring accountability. The most active community members will in the future be able to take part in real-life charity initiatives,” the project’s representative added.