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Crypterium Burns One Million of Its CRPT Token: Targets to Remove 30% of Entire Token Supply

UTC by Andrey Sergeenkov · 3 min read
Crypterium Burns One Million of Its CRPT Token: Targets to Remove 30% of Entire Token Supply
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With the projection that the supply of CRPT tokens will drop significantly in the next two years, it is expected that the value of the token will increase as well.

Every crypto project constantly innovates and re-strategizes in order to stay competitive in the market and relevant to users. The crypto and blockchain space is always evolving, and project stakeholders need to be up and doing to stay ahead of the market. This is the case of Crypterium, a digital asset financial technology platform.

Crypterium recently announced that it has phased out up to one million of its CRPT tokens. The platform appears to be the latest crypto-based fintech ecosystem to adopt the deflationary tokenomics model. Why will the stakeholders of this project seek to remove a certain proportion of its token from circulation? Keep reading as the answers will be laid bare in the course of the article. First, let’s take a quick look into the Crypterium platform and what it’s all about.

The Cryterium Platform

Crypterium is a crypto-based fintech ecosystem designed to offer seamless and efficient digital asset transactions. The startup seeks to bridge the gap between cryptocurrency and the traditional fiat economy. Crypterium currently offers its services in about 170 different countries across the globe. The fintech startup also helps businesses monetize their customers by providing them with crypto, banking, Visa, etc., card issuance services. These services also come with a tested SDK program.

Since its launch, the platform has had more than 500,000 active users with up to $130 million in transaction volume. With the Crypterium Visa card, businesses can execute B2C services, while its SDK program ensures businesses can execute B2B services.

Crypterium Targets Removal of 30% of Its CRPT Token Total Supply

On July 1, 2021, the Crypterium crypto platform announced that it targets to remove about 30% of total supply. In the crypto space, this removal is known as “burning.” It is not out of place for crypto platforms to burn their tokens to make the tokens more valuable.

Crypterium’s token is an ERC-20 standard created on the Ethereum blockchain network. According to the project’s stakeholders, the goal to phase out or remove these tokens from existence is in the best interest of Crypterium platform users. For every transaction executed on the platform, a transaction charge of 0.5% paid in CRPT token is subsequently removed from the system. More than 1.6 million Crypterium tokens have been eliminated from existence since 2018, with 400,000 of that carried out in 2020. This number is expected to at least triple in 2021 as 800,000 tokens have already been phased out within the first half of the year. According to a chart revealed by the company, an average of 10,000 CRPT tokens were removed every month in 2019.

Currently, that number has risen to a staggering 150,000 tokens canceled and eliminated every month in 2021. With the current trajectory, about 2.3 million tokens will cease to exist before the end of 2021. This trend means that Crypterium will be able to burn 30% of its tokens by the year 2023.

How Deflationary Tokenomics Model Impact CRPT Token

The model is a technique whereby a company is able to increase the value of its token while also simultaneously reducing the number of these tokens in circulation. By burning a portion of its token, Crypterium can increase the demand for its tokens because as the number decreases, its demand will likely increase. The fundamental understanding of basic economics informs us that if a product is scarce, its demand increases, and thus value increases.

With the projection that the supply of CRPT tokens will drop significantly in the next two years, it is expected that the value of the token will increase as well.

Guest Posts
Julia Sakovich
Author: Andrey Sergeenkov

Founder and editor at BTC PEERS. Andrey writes about financial experiments, DeFi, cryptocurrency, and blockchain.

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