Cardano (ADA) founder Charles Hoskinson said that the network will not intentionally burn its tokens, a type of deflationary action seen in some assets in the crypto market.
During a live broadcast on September 19 via his YouTube channel, the founder and leader of Cardano came out against the idea of burning ADA tokens. The mathematician said that the proposal would be something that reflects “the greed and stupidity of the people.”
What is token burning?
Token burning, also known as “coin burn”, is an action in which part of the initial offer of an asset is burned. As the number of tokens in circulation decreases, the possibility of their price going up increases.
This action is seen as a deflationary mechanism, used to make the price of the asset appreciate over time, as new burns are made. Binance Coin (BNB), for example, goes through this process every quarter.
Another great cryptocurrency that adopted this mechanism was Ethereum after the hard fork London. In less than a month, more than 70,000 ETH were burned in fees. The network is estimated to burn $ 5 billion worth of cryptocurrencies each year at its current rate.
Although the process is well regarded by many market users, as it can cause large increases in the prices of these assets, Hoskinson assures that this action would be “destroying other people’s money so that you can earn a little more money”.
Known for his frank statements and controversial views, the Cardano founder commented that network enthusiasts who would like to join this initiative they could create a protocol of “proof-of-burn”Where it would be possible to send ADA tokens to a wallet that would burn them.
So anyone who wanted to burn their tokens would be free to do so, but the Cardano network as a whole would not carry out this activity at “anyone else’s expense”.
Cardano involved in scams
During the live, Hoskinson commented once again on the scams that were seen on the Internet and involving Cardano.
More and more criminals carry out False advertisements claiming that users who deposit ADA into a particular wallet will receive much larger amounts of the asset as a reward in the future.
In some cases, hackers break into the official accounts of top celebrities and investors, as well as YouTube channels, to make these false promises.
Images and videos of big names in the market have also been seen, like Vitalik Buterin and Elon Musk, being used in these scams.
To alert his listeners, the Cardano founder repeated several times that “we will never give ADA”, stating that people should not be fooled by the promises of these announcements.
ADA loses market value
The native token of the Cardano network was one of the assets that grew the most in recent weeks, due to the euphoria of the market with the Alonzo update, which inserted the smart contracts feature in the blockchain de Cardano.
After breaking the $ 3 barrier and hitting a new all-time high, ADA had established itself as the third largest cryptocurrency by market value. But nevertheless, the token has since fallen, losing its rank to Tether (USDT).
At the close of this article, ADA was trading at $ 2.14, having accumulated a fall of 17.5% in the last seven days and a market value of $ 68.8 billion, according to data of CoinGecko.
All information on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at your own risk.
We want to thank the writer of this article for this outstanding web content
Cardano (ADA) won’t burn its tokens, notes Charles Hoskinson – BeInCrypto