IMAGINE BUYING SOMETHING JUST TO DESTROY IT
Why would anyone do that? Sounds pretty stupid, right?
Well, this happens all the time in crypto. And the funny thing is, people actually celebrate it.
Let me explain with something a bit more familiar.
Pokémon TCG cards.
Imagine there are only 1,000 rare Pokémon cards out there.
A company decides to buy 100 of them from collectors.
Now it has two options:
1 - Put those 100 cards in a safe and sell them again whenever it wants.
2 - Destroy all 100 cards, leaving only 900 in existence.
In crypto, buying tokens back is called a buyback. Destroying them permanently is called a burn.
Now replace those Pokémon cards with ethereum:0xad29f2723fcdbcf665f210f25e06f97477e417cf tokens.
That's exactly what @grvt_io recently did with the second option.
Except instead of 100 cards, they bought back 1.1 million ethereum:0xad29f2723fcdbcf665f210f25e06f97477e417cf from the open market and burned them.
That's almost 1% of the circulating supply at the time.
And here's the important part: those tokens aren't sitting in some team wallet waiting to be sold again.
They're gone. For good.
Now, back to our Pokémon cards for a second.
Imagine that company announces it destroyed 100 rare cards.
How would you know they're not just sitting in a safe somewhere?
With physical cards, you'd have to trust the company or ask for proof.
But crypto makes this part a little easier.
Every GRVT burn is recorded onchain. Anyone can look up the transactions and verify what happened.
You can even check it yourself here:
grvt.io/exchange/buyba…
And that's why I think there's a big difference between buying tokens back and keeping them in a treasury versus burning them permanently.
Of course, fewer tokens doesn't automatically mean a higher price. People still need to want them.
But I'm curious what you guys think.
Would you rather see a project keep its bought-back tokens or burn them for good?
105 Followers 5K Followingonly private elite here!! I will mainly talk abou crypt market price action analysis etc.
ONLY FOR A FEW PEOPLE MAIN ACCOUNT @orangie
10K Followers 7K FollowingGM legend 🇮🇩
Hunting signals while CT is still sleeping 😎
Conten Writer I Official Ambassador for $DEOD | @Decentrawood 💜
DM for Collabs 📩
395K Followers 13K Followingin my neobank and crypto card era
writing: https://t.co/UXw0BYZ3rg
proud ambassador of @SwyftxGlobal // business enquiries: @R3ACHNTWRK
275K Followers 739 Followingfan of crypto, ethereum, NFT-based art, AI, video games, and geopolitics. posts not expert opinions or advice. https://t.co/Aq5wHkGNui
3.9M Followers 567 FollowingThe blockchain with superior distribution and deep liquidity, built for global markets and the next billion users.
Build your AI agent with BNB Agent Studio 👇
1.4M Followers 566 Following🦊 The self-custodial crypto app where your money is always working. Trade anything, earn more.
Need help? https://t.co/gIVYDT65Ls | @MetaMaskSupport 🧡
123K Followers 4K FollowingFounder of @artblocks_io. Creator of the Squiggle. Art + Blockchains keep me busy. Shoutout to @larvalabs for lighting the fuse.