Token Burnout in a row for EOS

By Rajat Gaur

When it comes to implying a technology to its maximum potential, there are a lot of factors that one has to consider. One of the most reprimanding factors includes the test for stability. The technology needs to be put under the table in various situations to make sure that there is no error to occur if anything was to go wrong.

Why such a problem?

Many of the companies and startups that are based on this very factor forget the basics. They tend to face very rigorous turbulence due to the stability crisis of their very own digital currency or any other currency they are dealing with.  This ultimately results in the company to chicken out and put themselves in situations that are never going to help the company out in any way. Putting the companies stocks in the cold,  large-scale burning of their resources and making transactions stale is pretty common in the list.

Why EOS is on a burning spree?

One such company that made the burndown wall of fame is definitely EOS. The company is not new to burndowns as they have admitted to doing the same in the past. But this time the company went overboard with the burndown. They burned down nearly $132 million dollar worth of their digital currency to make sure that the company passes the inflation it is currently facing. Many of the neighboring companies and feuds are nearly shocked to see the company putting up a blunder on the boards for the second time in the row.

The company has many explanations to tell but nothing seems to suffice the huge burn down of the tokens that they are implementing. This would slowly hackle the trade values of the token and if the company were to deliver another similar blow to themselves, it is definitely not going to do any good for the company.

Usually, whenever someone invests in the tokens it gets stored in the savings account stream of EOS. Now since they felt that emptying the account would curb inflation rates that are partially helpful, they anyway dumped the funds. Now all the funds get into the hands of the block producers without even actually getting stored anywhere. This might bring several financial backstops that might hinder the transactions between the company and its clients and that might potentially bring down the token value as well.

The same thing happened last time but it was around 34 million tokens in 2019.