Floki Burns 2% Tokens to Increase Network Value and Security

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Floki (FLOKI), one of the memecoin crypto assets inspired by the name of Elon Musk's pet dog, plans to burn part of the circulating token supply. The goal is to increase the scarcity and security of the network, as well as attract investors.

Token burning is the process of permanently removing a token from circulation by sending it to an inaccessible wallet address. This can increase the value of the remaining tokens, because the rarer they are, the higher the demand.

According to Floki's lead developer known only by the initials B, the token burning proposal will be submitted to the Floki community through voting. The number of tokens to be burned is about 190.9 billion FLOKI, or about 2% of the total supply.

"The number of tokens to be burned is currently worth more than $11 million (Rp172.6 billion)," B told crypto media CoinDesk via Telegram message.

B added that the tokens to be burned come from a supply stored on Multichain, a platform that allows the transfer of tokens between various blockchain networks. However, Multichain suffered a failure in July 2023, causing losses of more than $130 million (Rp2 trillion) due to hacker attacks.

FLOKI Developer Sees Risks from Multichain

Floki claimed to have withdrawn tokens from Multichain prior to the incident and stored them in a secure multisig wallet. A multisig wallet is a wallet that requires approval from several parties to make transactions.

"We saw some red flags with Multichain last year and immediately pulled the bridge tokens we had with them to Multisig Floki," B said. "We believe that the only trustless way to guarantee that they never get into circulation is to burn them."

The crypto market reacted positively to the planned burning of Floki tokens. The price of FLOKI rose by 13% after the announcement and continues to stay in the green. According to CoinMarketCap data, FLOKI was trading around $0.000058 (Rp0.91) per token on Thursday (1/3/2024) at 08.00 WIB, up 10% in the last 24 hours.

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Get to know Floki Inu (FLOKI)

Floki is one of the crypto platforms following in the footsteps of Dogecoin (DOGE) and Shiba Inu (SHIB) which use images of dogs as logos and mascots. Floki claims to be a third-generation crypto platform that offers various features, such as NFTs, games, and the metaverse.

Floki also has the backing of Elon Musk, CEO of Tesla and SpaceX, who often promotes dog-themed crypto projects on social media. In September 2021, Musk announced that he had adopted a Shiba Inu dog and named him Floki. This led to a spike in the price of FLOKI by up to 1,000% in a day.

Floki isn't the only crypto platform doing token burning to increase value and security. Several other popular crypto platforms, such as Binance (BNB), Ethereum (ETH), and Polygon (MATIC), have also periodically conducted token burns as part of the deflationary mechanism.

Token burning is one of the strategies that crypto platforms can use to attract investors and users. However, token burning also has risks, such as reducing liquidity and disrupting the balance of supply and demand. Therefore, token burning must be done carefully and transparently.

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How to Buy Floki Inu (INU) on Bittime

You can buy and sell Floki (FLOKI) in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.

Floki (FLOKI) is available on Bittime with the market pair FLOKI/USDT. To be able to buy FLOKI USDT on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is Rp10,000. After that, then you can make a crypto asset purchase in the application.

Learn the complete guide on how to buy Floki Inu (FLOKI) on Bittime.

Monitor the price chart movements of Floki Inu (FLOKI), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.