$27.6 million worth of GUSD has just been burned from Gemini to "Black Hole." Gemini is now getting a -10.48% 24-hour change. The question is, could this burning of Gemini be good for the particular cryptocurrency?
What is Gemini?
Before everything else, it is important to know more about the said cryptocurrency. Gemini is officially a privately-owned cryptocurrency exchange that would allow users to buy, sell, trade, and even securely store Bitcoin, Ether, and around 40 other cryptocurrencies, according to Investopedia.
Gemini was launched in 2015 by both Tyler and Cameron Winklevoss. Gemini offers a tiered service with certain separate interfaces and fee structure for those casual investors as well as hard-core traders. Gemini has a mobile app, payment app, and even its own GUSD currency. The Gemini dollar is said to be a "stable coin" that is reportedly tied to the US dollar.
Learn More About the GUSD Stable Coins
Stable coins are reportedly designed to mimic the dollar, but as seen on CoinGecko, one GUSD equals $0.9979 USD. As of the moment, the Market Cap is said to be at $190,505,437, and its current trading volume of $7,920,647. Although not one-is-to-one, the value of GUSD's all-time high was at $3.30 and all-time low at $0.782610.
Gemini was noted to be the world's first regulated stablecoin. This reportedly combines the creditworthiness and price stability of the USD with blockchain technology as well as the oversight of US regulators. As confirmed on EtherScan.io, the transaction came from the official Gemini address to the Black Hole with an address of 0x0000000000000000000000000000000000000000.
27,963,424 GUSD Burned
There was a total of 27,963,424 GUSD burned, leaving the official Gemini address with $169,668,165.14 USD left. As of the moment, the coin is ranked #302 on CoinGecko. There is currently a total supply of 191,070,073 GUSD coins with an unknown max supply. For those that are looking into the Cardano price prediction, it is important to understand the top 10 upcoming Cardano blockchain and Dapp projects.
The big question as of the moment is why did Gemini burn GUSD tokens. According to the article by FinancialExpress, coin burning is basically the act of creating a supply crunch which would create an artificial upward pull for the said token price. The NFT market has just hit the $10B mark in secondary sales, with Ethereum's layer-2 making a chunk with $6B in secondary NFT sales.
Coin burn in the whole cryptocurrency world is exactly the same, albeit it is virtually the actual burning of the cryptocurrency. Every cryptocurrency network defines a protocol for accomplishing the official burn, but it would amount to associating the coins in circulation with particular unobtainable keys that would not allow anyone to claim them. The coin burn itself is also recorded in the ledger books of the burn as actually foolproof.
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Written by Urian B.