Benzinga - Cryptocurrency exchange OKX has executed a monumental move by burning more than $258 million worth of its native tokens, OKB, in a three-month period between March and May.
This strategized action sent the OKB tokens on an upward trajectory, while the broader cryptocurrency market showed minimal fluctuations.
OKX revealed in its freshly released buyback and burn report on Friday, “In this round, the total number of OKB bought back and burned from the secondary market was 5,497,312.77 OKB.”
Following the revelation of the burn’s completion, OKB’s price experienced a hike, moving from $44 to $45.
In the past day, the tokens have seen a 1.4% ascent. With a formidable market capitalization surpassing $2.6 billion, OKB tokens continue to exhibit strength in the market.
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The buy-and-burn initiative made its debut in May 2019.
OKX committed to procuring OKB tokens every quarter from the initial supply of 300 million.
The number of tokens purchased relies on the market conditions and the operational performance during each season.
The term "burn" denotes the irrevocable obliteration of tokens from the circulating supply by relegating them to a wallet address that is bereft of any control.
This curtailment in supply can culminate in a price surge for the tokens if there is a sustained demand.
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