Meaning Of Coin Burn In The Crypto World; Investors Must Know It
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Meaning Of Coin Burn In The Crypto World; Investors Must Know It

June 3, 2020      Aditya Nagar

If you have been abreast of cryptocurrency regulation news, then it is indeed that you are interested in reading and getting all updates about everything related to cryptocurrency. But besides this, are you interested in making cryptocurrencies a medium for earning money? Most probably, your answer will be yes or of course. Isn’t? So if this is true, then proceed forward in purchasing digital currencies that constantly burn themselves. Now it might appear weird in reading the burning of cryptocurrencies. But the word does not mean getting burn in flames. Rather, it is a unique way of defining the earning from cryptocurrencies. So let us dwell ourselves to know the meaning of coin burn from this article.

Meaning Of Coin Burn

The meaning of coin burn in the crypto world defines the activity of sending coins of specific cryptocurrency to a public address. But those specified coins are impossible to be sent as obtaining of the private keys from the address is very complex. To see the transaction, the availability of the public address on the blockchain is a must. Burning of the coin has some purposes that are:

To Reward Coin Holders

The meaning of coin burn can also be understood as sending of coins to an address that is not spendable and varies to multiple cryptocurrencies. This activity is supposed to be important in generating scarcity in the economic sphere and benefitting the coin HODLers. Now, what is HODL in crypto? Well, HODL is nothing new word but a misspelt version of the word ‘hold’.

The term was first used by a drunken person on the Bitcoin forum saying ‘I am HODLing’. Well, the actual meaning of this word is to holding the cryptocurrency instead of selling it. Those who hold cryptocurrencies are being called as crypto HODLers. Building a scarcity of supply is the other important method to reward the crypto holders or investors. A very popular crypto exchange like Binance takes much advantage in the burning of BNB tokens.

Generating Of New Coins

It is another method that needs to be understood besides knowing the meaning of coin burn. The method explains the sending of the specific amount of a cryptocurrency to a non-disposable address and in exchange for these coins, the creation of counterparty tokens is done on the blockchain. After the burning of specific crypto coins, there can be no possibility of re-spending. This brings some value to counterparty tokens.

Demolishing Tokens Which Were Not Sold After ICO

Another purpose reveals about is destroying the tokens or coins that were not sold after the token sale or during the initial coin offering. This leads to the company having a partial quantity of money that is free. They can access it by selling off the coins or tokens that are left in the market at a commendable price.


To understand the meaning of coin burn, you need to know about various applications and the diverse phases for its utilization. Some cryptocurrencies apply to the burning of tokens to ward off initial coin offerings. But there are also some well-known crypto exchanges like Binance, that prefer rewarding token holders with the purpose of burning the coins. If you see the positive side of coin burning, then you will find that it is a good step, as it promises genuine returns. Coin burn is an essential part of the cryptocurrency world. Every investor must know about it.

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Aditya Nagar
Aditya Nagar

Aditya is enthusiastic about reading all about the Cryptocurrency and loves to get updated about the recent developments that take place in crypto industry.