Spot Ethereum ETF Styled ETHETF Token Starts Mammoth Burn Program, Price to Pump 10x?
Thursday, November 16th, 2023 – Two days after launching, $ETHETF coin has announced a 21 million token burn program, reducing total token supply by 21%.
The price of $ETHETF jumped 25% on the news to $0.01601 and is now up 12% at $0.1448. News of the burn program comes at the same time as fund giant BlackRock officially filed its application to issue a spot Ethereum ETF.
In X/Twitter and Telegram posts, the ETHETF Token team has said that the tokens will be burned over a 21-day period, starting with 1 million tokens burned today.
Burning is a method whereby tokens are sent to a null address on the blockchain that only has a receive function, effectively removing from circulation tokens sent to it.
By removing 21% of the total supply it helps to boost the price of the remaining tokens. For those considering buying the token, the burn program is a strong demonstration of the team’s commitment to the project and its intention to continue seeking out ways to enhance the value of the token.
Linked to the spot Ethereum ETF theme, $ETHETF already has a burn mechanism, whereby each buy attracts a 2% token burn. These buy burns will cease when a spot Ethereum ETF is launched. Today’s news of the 21% burn program hugely buttresses the value-creating deflationary properties of the token.
Yesterday, in another sign of the team’s commitment to the project, more than half a million dollars of liquidity was locked. This move makes trading much smoother by facilitating both smaller and larger trades. It also is something that traders will look out for when seeking reassurance that a project is not a rug pull.
$ETHETF now trades on the V2 and V3 liquidity pool versions of the Uniswap decentralized exchange. V3 has locked liquidity of $572k
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