The mini-app feature of Telegram has rapidly expanded the TON Coin ecosystem, attracting a massive user base. Meme coins on the network have initiated substantial airdrops, although their price performances post-listing have not been particularly satisfying. Exchanges are eager to list more tokens to attract additional users, and now they are also conducting burns for DOGS and NOT tokens.
DOGS and NOT Coin Burn
Notcoin will execute a token burn worth $4 million in collaboration with its first major project, DOGS, a prominent meme coin. Of the tokens to be burned, 85% will be DOGS, while the remainder will consist of NOT Coin. The announcement today revealed that the decision followed a community vote.
“Following the community vote, $DOGS and $NOT will burn tokens worth approximately $4 million. This burn operation will permanently reduce the total token supply for both projects, and a significant portion of the unwanted $DOGS tokens will be donated to charitable causes as determined by the community.”
Notcoin currently has a market value of $800 million, priced at $0.0078, while DOGS Token stands at $370 million. Although there were high market values on the listing day, the expected initial selling pressure from users receiving millions in airdrops is likely to lower unit prices.
Token Burn in the TON Ecosystem
A total of 4.8 DOGS tokens will be burned, with 6 billion in unclaimed tokens directed to charities chosen by the community. Considering DOGS Coin’s market value of $370 million, a $3.5 million token burn is significant. The USD equivalent was much higher on the listing day.
The tokens will be burned on Wednesday. The negative fluctuations in BTC prices and the relatively modest amount of tokens burned compared to the total supply are expected to have limited effects on prices. The TON Coin represents a significant trial, resembling platforms like WhatsApp or Facebook providing crypto access to millions of active users. Over 900 million monthly Telegram users can easily engage with crypto through just a few clicks.
The main issue lies in the limited activity of users who perform transactions within the application for airdrops on the blockchain. Many users feel no need to remain engaged with the application after receiving their airdrops. The challenge remains to cultivate this necessity and determine whether the tokens that initially surge will sustain their viability.
