What is a 'Coin Burn'?

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With all this market share, some companies are turning towards coin burns to lower the circulation (think scarcity)...
There has been some talk about coin burns recently in the crypto world, and notably within the past few weeks after some huge gains. Learn how a coin burn might affect you...

How does a coin burn work?

A coin burn is not the same as a split in the stock world as some crypto warriors have been advocating on social media. Instead, it is actually more similar to a stock market that does a buy back of it's own shares. The immediate outstanding shares (or coins) is lowered based on the number provided. This lowers circulation, and essentially is the opposite of dilution- it promotes exclusivity (theoretically good for coin holders).

Imagine that a company such as Tron (TRX) decides to do a coin burn for 25%- going from 1,000 coins circulating (example for simple math) to 750 total. That would mean (in theory) that the value of the coin, based on market cap, would be 33% more powerful, simplified. There are many variables that we will not get into depth within this article, but basically, a coin burn is as good a time as any to strap down and hodl.

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