OKB, the token of cryptocurrency change OKX, greater than tripled to a report excessive after the corporate executed a one-time burn of 65.26 million OKB, reducing the provision by greater than 50%.
Burning the roughly $7.6 billion value of tokens completely reduces the utmost provide to 21 million, in keeping with the laborious cap coded into bitcoin
. The burn, or sending the tokens to a pockets handle that may’t be accessed, was carried out from OKX’s reserves and represents one of many largest deflationary occasions in change token historical past.
The impact of the burn was prompt. OKB jumped to $142 from $46 earlier than retrenching to about $102. Buying and selling quantity skyrocketed 13,000% to $723 million as merchants tried to capitalize on the provision shock.
The technique mirrors that of BNB, the token of BNB Chain, which is related to rival change Binance. That undergoes quarterly burns that always precede short-term rallies.
Supporting that narrative, OKB’s turnover ratio, a measure of buying and selling exercise relative to provide, spiked from 0.03 pre-announcement to 0.093, signaling heightened speculative and strategic positioning.
Sustained worth momentum will rely on whether or not OKX can proceed to drive adoption of its X Layer blockchain, of which OKB is the native token. To that finish, the change plans to extend transaction pace and scale back fuel costs, based on a weblog put up. It’ll even be phasing out Ethereum-based OKB tokens, which might now be redeemed for X Layer variations.
