Crypterium Burns 1M tokens Cutting Third of Total CRPT Supply
4 min readFollowing up on the announcement regarding burning CRPT, Crypterium confirms that more than 1m tokens have been successfully collected and destroyed during the first burning on July 11.
Meanwhile, Crypterium confirms it plans to reduce the CRPT total supply by 30% during the next 24 months and will be constantly increasing the burning volume.
CRPT is Crypterium’s native token. This cryptographic digital asset was developed on top of the ETH blockchain to ensure stability and scalability for all crypto-to-fiat services provided by Crypterium Wallet, Crypterium Card, as well as recently launched B2B solutions.
Every time transactions are executed using Crypterium services, a 0.5% gas fee in CRPT tokens is charged and subsequently burned. Since the total supply of CRPT is capped at 98 million tokens, the ongoing burning guarantees a positive effect on token economics such as the supply-demand ratio.
The more transactions that are processed, the faster CRPT supply is reduced. Since 2018, the company has burned more than 1.6 million tokens.
Burning more, burning faster
As business performance increases, so does the burning effect. During 2020, Crypterium burned 400,000 CRPT, which was a significant increase over the previous year, but 2021 has seen huge growth. This year almost 2M additional tokens have been burnt already, and we are only 6 months into the year.
This chart represents the burning volume starting from 2019, when the monthly rate was around 10 000 tokens. Close observers will notice that token burning is growing at a steady rate. In May alone it was 150,000.
This means that by the end of 2021, at least 2.3m tokens will be burnt, and if we take that same trajectory forward, within 2 years it could reach as much as 30% of the total supply.
While the burning rate has been so far linked to transaction volume, Crypterium’s founders along with the token sale team and advisers are already speeding up the process by redeeming and subsequently burning tokens from the open market. The CRPT circulating supply stands at 83 million of which 18m are temporarily locked in deposit accounts, so it will not take too many burned tokens to have a major impact on supply.
One thing that remains unclear, the price of the CRPT token. If transactions increase, burning increases, supply falls. If traditional supply-demand economics play their role, then the price of the token moves upwards. This can only be increased by events such as token redemption burning.
Crypterium speeds up the burning process, aiming to remove close to 30% of CRPT tokens from circulation. According to the firm’s COO, Austin Kimm, the first step towards burning ⅓ of total supply has already been made and the move to redeem tokens from the open market will be a boost to Crypterium’s ecosystem.
“We are pleased to report that the first step towards burning 30% of total CRPT is finished. We have successfully burned more than 1M tokens on July 11. We are confident that increasing CRPT burning speed will have a positive impact on our ecosystem, and we will continue to increase the burning volume further.”
said Austin Kimm, COO at Crypterium.
To speed the burning process, Crypterium has also invited all crypto communities to participate. The firm has debuted an initiative to enable CRPT token holders to send their tokens to a dedicated address to contribute to the burning process. More than 1m cryptocurrency tokens have been collected so far and already burned, and that’s just a beginning
Promising financials ahead
In the past year, Crypterium has doubled its user base to more than 500,000 users from 170+ countries. The company registered a 10X growth of its monthly gross profit in 2020 with a turnover of €150.000.000.
Moving forward, Crypterium is forecasting to hit a €200.000.000 monthly cash flow within the next two years. Such a sum would represent a burn volume of €1.000.000 worth of CRPT tokens, a significant increase from current levels.
Let the burning begin.
About Crypterium
Crypterium is a global fintech startup bringing transparency and efficiency to everyday digital asset finances. In 2018 we embarked on a mission to make digital currencies as easy to use as cash.
Today, more than 500,000 people worldwide rely on Crypterium Wallet and Crypterium Card to connect their digital assets with traditional finance.
Crypterium Wallet is a one-stop solution designed to simplify digital assets management. From buying to earning interest, you can do it all from an easy-to-use, highly secure mobile and desktop wallet. Some of our key features include:
- Send: instant, fee-free international money transfer with just a phone number
- Buy: purchase your favorite digital assets on the go with your debit/credit card
- Exchange: access the best rates on the market from a single platform
- Cash-out: withdraw your digital assets to your payment card in minutes, not days
- Pay: get a sleek, ultra-convenient payment card connected to your Crypterium Wallet
- Earn: save effortlessly with high-yield savings accounts for digital assets
Crypterium Wallet puts together all the services you need, right where you need them. Our wallet is available in over 170 countries. You can download Crypterium Wallet on iOS and Android devices, or access it with your desktop.
Following our commitment to serving people all over the world, Crypterium launched the first company to develop a crypto-to-fiat payment card available in 180+ countries.
The contactless, free Crypterium Card VISA gives every digital asset holder the possibility to pay instantly in over 42 million retailers worldwide, and withdraw in ATMs all across the globe.
The Crypterium team is led by former General Manager of Visa Central & Eastern Europe Steven Parker and C-level executives from global financial institutions.
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