Wazirx Token Burn
WazirX is a trading platform founded by Nischal Shetty, Sameer Mhatre and Siddharth Menon which was launched in India in the year 2018. Back in the days, when Indian central bank banned the banks from dealing with the cryptocurrencies and exchanges in india started shutting down. Then came WazirX and launched the world’s first auto matching peer-to-peer engine in India.
This opened the gates for 1billion people to invest in cryptocurrencies and be a part of the digital revolution.
Wazirx (WRX) Logo
WRX is the utility token backed by the WazirX cryptocurrency exchange. It is basically the backbone of WazirX ecosystem. WRX token is based on Binance Blockchain with a total supply of 1 Billion.
Must Read My complete review of the WRX token.
Recently WazirX made a announcement regarding the 2nd token burn, which will take place in 3 parts. The first part is already done as of 11th October 2020. The next two burns will take place in coming days. One amazing fact is that tokens burned in this quarter’s (July-September) first part is equal to the total number of tokens burned in last quarter (April-June).
The first token burn took place in the month of July 2020 in which a whooping 833,333 WRX tokens were burned from the circulating supply which is equivalent to $120,000 at the time of burn. You can read more about it here.
So, In this blog I will be explaining what is token burn ? and why this deflationary mechanism can play a major role in WRX Token price increase.
What is a Token Burn ?
Token Burn is the mechanism in which a certain percentage or amount of the coins are removed from the circulation permanently. The amount of the coins burned depends upon the metrics decided by the project team.
Token Burn Process
This approach is usually taken by the Token creators in order to cause deflation. This provides greater benefits to the potential investors.
The burning of the tokens in the cryptocurrency space is similar to the buy-back of shares by public companies in stock market, which reduces the amount of the shares that are in the circulation
Every quarter some WRX coins will be burned (destroyed) based on the trading volume of the WazirX exchange. So, as the trading volume on the WazirX increases, the amount of WRX burned will increase as well.
This mechanism will be continued for every quarter of the year, until 10 % of the entire tokens are burned i.e. 100 million from 1 Billion. This process will reduce the supply of the WRX tokens and leads to the increase in the demand.
How to buy WRX token ?
Step-1: Go to their Website or get the Wazirx app from the Play store or App store. Then create an account if you don’t have it by submitting the necessary KYC documents. This process takes less than 5 mins.
Step-2: You can buy WRX in USDT, INR and BTC markets. In this blog I will be explaining you how to buy WRX using USDT.
Step-3: Select the WRX token as shown below
Step-4: Then click on the Buy/Sell button which is the middle
Step-5: Now in the price area type the price at which you want to buy the coin. Then enter the number of coins you want to buy and click the buy button. The order will be placed. Once the price you have entered matches the market price, the order will execute.
And that's it folks, you are now the proud owner of WRX. The coins will be stored in the Funds section, which you can hold or sell whenever you want .
My personal overview on WRX coin future
India is the second most populated country in the world. Awareness about Bitcoin and Cryptocurrencies is growing exponentially these days.
WazirX being the go to exchange in India. I think WRX which is its native token, has a lot of potential to grow in the coming years. With a supply of 1 billion coins in which 30% is locked by foundation and 10% will be burned in coming years, I personally think the demand for WRX will increase a lot.
Also the team will be working on many use cases which will make the users hold WRX Tokens . So, Keeping all these factors in mind and also with the AMM protocol around the corner, I will be just holding my WRX tokens for next few years.