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Gate.io Completes GT Repurchase and Destruction in Q2 2021, Total Value of Over $21M

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by Julia Sakovich · 5 min read
Gate.io Completes GT Repurchase and Destruction in Q2 2021, Total Value of Over $21M
Photo: Gate.io

GT will also open a global partner recruitment plan, looking for partners in integrated shopping platforms, clothing brands, travel, hotels, catering, virtual gifts, game assets, real estate purchases, medical services.

According to an official announcement, Gate.io opened its doors on July 31 to announce the GT burn situation in the second quarter (Q2). The data shows that the second quarter of 2021 benefited from the influence of the blockchain industry’s big market ,the number of users and transactions on the platform hit an 8-year high, with a total of 4,873,866 GT destroyed, worth over 21 million US dollars.

Calculated based on the actual circulation of GT and the quantity of Q2 burnt, the destroyed quantity accounts for 3.725% of the actual circulation.

Gate.io Sesame Opening from September 1, 2020, burn GT tokens at the value of 20% of the platform profit, including repurchase from the open market (accounting for 75%) and the destruction of GT from the ecological part of the market (accounting for 25%, until the destruction is completed), publishing the destruction data every quarter and publishing GT destruction transfer transactions.

Entering the second quarter of 2021, startup activities and voting activities began to be converted to free airdrops, the contribution to GT repurchase is relatively low, and all income will be included in the GT repurchase burn in the last quarter of the year; The ecological part of the market has a total of 20 million GTs, which will not flow to the market until they are destroyed. The actual throughput of GT after this destruction is 130 million. At present, the output speed of network PoS is much lower than the destruction speed, and the total amount of GT is in a state of net deflation.

Net Deflation Boosts GT Applications in All-round Scenarios

In the current market, exchange competition is intensifying, and platform currency symbolizes the comprehensive strength and brand influence of exchange, this has become an indispensable part of ecological construction, platform currency has the advantage of being deeply tied to the platform, users can link various functions of the platform through the platform currency. It can also be used as an investment, which makes the circulation capacity and appreciation space of the platform currency contain unlimited potential.

As the native mainnet asset of GateChain, Gate.io ‘s only pass is the ecosystem. Early GT is obtained for free by purchasing a Gate.io transaction point card. Many application scenarios could be seen as promotion of VIP level, deduction of handling fees, participation in welfare activities, etc.

Otherwise, compared with the proportion of other mainstream exchange platform currency burns, GT’s quarterly burn volume has always been in the forefront; the overall burn time will be much shorter than 8-9 years of mainstream platform coins on the market.

It is known that GT will also open a global partner recruitment plan, looking for partners in integrated shopping platforms, clothing brands, travel, hotels, catering, virtual gifts, game assets, real estate purchases, medical services, etc. Promote the application of GT all-round scenarios, facilitate the free flow of global assets and value, and accelerate the process of global decentralization.

The Strength of the Exchange Empowers Platform Currency Applications to Land

As the market value of mainstream platform coins continues to rise, platform coins have become a direct manifestation of the comprehensive strength of exchanges. According to CoinGecko’s data on August 2, GT prices have increased by 534.5% in the past year, which is higher than OKB by 200.6% and HT 122.7%. The value of GT has continued to rise since March of this year, reaching its highest point of $11.43 on May 13 .Since then, although the market has declined due to the “Black Swan Incident”, the overall value is still higher than that in March. Starting in late July, the price of GT has shown a clear upward trend.

The reason behind this is that, in addition to market conditions, it is related to the continued efforts of Gate.io’s large-scale ecological construction n.In April of this year, the world’s first centralized NFT trading platform Gate.io NFT Magic Box was officially launched, focusing on the NFT popularization strategy and bringing an equal rights movement for ordinary people to encrypted artworks.

In May, the new generation of public chain GateChain mainnet officially supported EVM, and is compatible with a variety of mainstream public chains, and supports cross-chain;In July, the Gate Grants assistance program was launched to provide a number of free support for early potential ecological projects to help every encryption idea. It can be seen that a series of ecological layouts of Gate.io have become an important reason for the changes of GT prices.

In the current encrypted digital asset market environment, the competition of exchanges is becoming more and more fierce. Whether it is a public chain battle or an ecological battle, the platform currency will be used as a native digital asset to benchmark the industry status of the exchange.

The platform currency increases in value as the exchange’s strength increases, and then feeds back the platform and users, forming a healthy development ecological pattern, and jointly creating value for the crypto industry. The repurchase and destruction of GT and the subsequent empowerment plan may bring a new round of benefits to GT prices.

About Gate.io

Founded in 2013, Gate.io is one of the TOP10 exchanges in the global digital asset trading volume.

As a main security exchange, Gate.io provides a 100% security deposit audit guarantee, and abides by the operating principles of no currency listing fees, no fraud, and no credit. It has been legally registered in many countries around the world, and operates multiple departments including global business, technology, wallet.io, blockchain research institute, customer service center, etc. aiming to provide safe, reliable, secure and transparent digital asset trading services for 6+ million users in more than 130 countries around the world.

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Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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