The Seychelles-registered cryptocurrency exchange OKX completed its 21 quarterly round of burning amounts of its native token.
It sent more than 6.1 million OKB (over $265 million going by current rates) to a wallet that nobody can access.
OKX’s Latest Burn
The team behind the marketplace announced on X (Twitter) that the 21st burning round included 6,140,520.48 OKB tokens. The endeavor is part of the company’s Buy-Back and Burn program, which started in May 2019. So far, the crypto exchange has removed over 70 million tokens from the circulating supply.
?? 21st round ofBuy-back & Burn ??
We have repurchased and burned another 6,140,520.48 #OKB
Including this latest event, a total of 70,182,835.18 OKB has been successfully burned to date.
— OKX (@okx) September 18, 2023
Such an initiative is considered bullish since reducing the market supply could make the asset more scarce and, hence, more valuable in time.
OKB’s valuation headed north shortly after the firm announced the event but started plunging shortly after. As of the moment of writing these lines, it trades at approximately $43.20 (a 2% decline compared to yesterday’s figures).
The Previous Burn
The trading venue its 20th round of the burning program at the beginning of June this year. Back then, it sent 5,497,312.77 OKB (worth $258 million at the time) to a designated wallet no one could reach.
OKX is not the only digital asset platform that burns a certain quantity of its native tokens every quarter. BINANCE – the world’s largest crypto exchange – adopted such a practice for the first time in October 2017.
Most recently, the firm nearly 2 million BNB (approximately $484 million). CEO Changpeng Zhao (CZ) said the process was done according to “the public algorithm,” assuring users they have nothing to worry about.