- Tron (TRX) tokens holders are concerned due to the supply of the tokens
- Burning the supply of TRX tokens will not benefit anyone except holders by allowing them to gain little profits
- Supply of the tokens is not the only factor affecting the prices to surge, true adoption can help to make profits
Tron, the ecosystem known for its courageous token supply, is concerning many in the cryptosphere. It is known that burning a significant supply of the token can help it gain its actual value. The main question that arises is what is preventing its CEO from doing a considerable supply burn. Many deemed that it will benefit the entire community, including the project itself, if Justin Sun, the Tron CEO, takes steps to increase the token’s value. However, in the current scenario, the TRX tokens supply is out of control.
Is burning the Tron (TRX) tokens supply beneficial?
Following the token being undervalued, many suggest burning a significant token supply. However, burning the supply could possibly wreck the token’s ability to be mass adopted, as burning the tokens makes it less accessible. According to many experts in the cryptosphere, hypothetically, coin burn will effectively bring a short increment in the price of tokens and nothing else. However, with mass adoption, the price will ultimately surge, and the advocates of the network expect a mass adoption soon. Due to what technology is provided and the network has gained confidence.
Crypto token supply is not the factor affecting the price
Many users deemed that the factors why burning the Tron are no good are acceptable. On the other side, they also raised concerns regarding the addition of millions of TRX daily to the circulating supply. According to TRX investors, the tokens’ price has been at a standstill for a longer-term. And many suggested a few limits as it seems like the supply is getting out of control.
However, if we compare the staking in Ethereum that is increasing by 10%, Tron increases by only 2%. If we observe the prices of ETH and TRX while considering the increments in supply, it is clear that supply is not the only factor. However, many other factors are also there driving the prices. One of the most important factors to consider is the lack of TRX token access. As in the United States still, individuals do not have direct access to acquire the tokens.
However, only the price of the crypto tokens is not what matters. What matters is the actual technology behind the projects. If someone suggests burning the supply only, so the prices surge, they forget that cryptocurrencies are modes of payment and are here to replace fiat currencies.
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