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Definition: crypto burning


(CRYPTOcurrency burning) Taking cryptocurrency coins out of circulation by sending them to a wallet that has only a "receive" address and no "spend" address. Therefore, once the tokens are received, they are gone forever.

By eliminating an amount of crypto, the value of the remaining coins should theoretically increase. Unsold tokens may be burned after an initial coin offering (ICO), while coins may be periodically burned for various purposes. For example, Binance burns BNB tokens because it committed to a total of 100 million burned. Tether burns an equivalent number of tokens when the coins are withdrawn. See crypto glossary.