Ethersmart with sustainable development strategies!

You may have heard a lot of investors and financial commentators discuss cryptocurrencies. Many of them worry about banks going bankrupt in bitcoin and the like. 

However, that is even less likely to happen with ETM as it is supported by some major financial institutions in the world such as Dubai Financial AS, Curacao Gaming, Isle of Man Goverman, RBC, Westpac . . . All contribute to the operation and development of ETM.

They may even charge specified fees to complete the transaction. That control is the most important differentiating factor of Ethersmart. In many ways, this is completely surprising, as blockchain technology offers so many benefits to companies that can use it effectively. However, backing a cryptocurrency like ETM is certainly an exception factor. It is something that needs to be understood by potential buyers and sellers as it gives those financial institutions much greater control over ETM than most other cryptocurrencies.

What is Token burning?

Token burning refers to the permanent removal of existing cryptocurrencies from circulation. Burning practices are popular and quite simple. Token burning is an intentional act performed by the coin’s creators to “burn”, or remove from circulation a specific number from the total available tokens in existence.

Why does Ethersmart burn tokens?

Burning ETM tokens may confuse some people. But this process comes with its own benefits, not only for developers but also for token users. Here are the main engines behind Token burning:

-Increase coin value: the most common reason behind token burning is to promote and encourage the growth of value of the coin. According to the economic law of supply and demand, the reduction in the supply of a good in the market drives demand for that particular project. Hence, by burning the token, the supply of the coin decreases in an equivalent manner, leading to a demand for the coin as there is a smaller amount of coins to satisfy everyone’s needs. Therefore, the price of the coin increases in price, stabilizing its value. For investors, growth in value encourages them to hold their money longer in anticipation of an even better price as demand increases. Also, keeping money longer helps maintain good network bandwidth which is beneficial for developers. 

-Building trust: gaining trust from coin holders is the ultimate goal of any cryptocurrency, especially a new cryptocurrency on the market. 

After the initial coin offering (ICO) of the new cryptocurrency, its price is bound to go up. The project developers may decide to make extra profit by selling the excess money to exchanges, at the current skyrocketing price, which is unfair. Furthermore, by selling the excess, it leads to allegations that developers are only committed to making a profit and that their coins have no real value. However, the burning of excess funds shows that the developers are committed to the long-term development of the coin. Therefore, the money raised from the ICO will be used for business operations. But most importantly, the burning of excess coins helps to decentralize the project.

Ethersmart Token burning

ETM – a security token allows investors to hold dividends from a project. Token burning works like buying back shares of companies. Ethersmart can redeem coins at a fair rate and then burn immediately to increase the value of each owner’s existing number of tokens. If ETM is required to buy back at market price, Ethersmart investors can even profit based on the price they originally purchased. 

Token burning is a strategy that very few blockchain companies implement because it directly affects the asset value of leaders and requires a long-term development commitment. And with Ethersmart’s token burning strategy, it will definitely push ETM value to a new level in the future.

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