Attract crypto investors by using Deflationary token development services

The rapid adoption of blockchain technology has been a game-changer for the global financial services industry. Likewise, people are investing more money in digital assets like Bitcoin (BTC) and Ethereum (ETH). Currently, there are around 17929 virtual currencies and 458 trading platforms. In recent times, the attention towards deflationary tokens is increasing. These virtual assets witness a steady decrease in its cost because of excessive minting. Likewise, there is a drastic reduction in the supply over a period. Hence, investors who purchase these digital assets receive more rewards. Let us analyze why it is apt to partner with our deflationary token development company. 

What are Deflationary tokens? 

“Buyback and burn” is an apt way to describe deflationary tokens. Generally, investors can purchase these digital assets from popular Cryptocurrency exchanges and Decentralized Finance (DeFi) platforms. Post a while, over-minting of the virtual asset will lead to a fall in its price.  Hence, this reduces the supply of the token per block. 

In the long run, it increases the value of the crypto asset. This is because of high demand from buyers. Moreover, project creators would buy back a specific amount of the tokens. Later, they will burn them. This decreases the circulation of the crypto assets. 

Generally, a specific wallet address receives the digital assets. Thus, there is an automatic rise in the value of the remaining tokens. Hence, scarcity of digital assets results in the phenomenon of deflation. Overall, the burning of tokens results in a large-scale transfer of value from the liquidity pool to individual investors of the digital assets. 

Deflationary tokens are a viable option when compared to incidents like hacking attacks, unintentional transfer of assets to a wallet address, and when owners lose access to their software and hardware wallets. 

Moreover, details of the token balance are available. This ensures transparency. Eventually, it incentives active investors to put more money into digital assets because of a strategic increase in its price. 

How is Deflationary Token Development Services highly beneficial?

Consistent rise in the value of the coin – Today, the daily trading volume of digital currencies is more than $109.65 billion. Bitcoin (BTC) and Ethereum (ETH) have a gigantic share of 43.1% and 18.4% respectively in the total supply. Importantly, our deflationary token development services will lead to a rise in the scarcity of virtual assets. Thus, there is a decrease in the circulation of tokens. 

Generally, there are 2 ways by which this happens. A strategic fall in the price of the token will contribute to a huge increase in the trading volume. Thus, this balances the interests of retail and institutional investors who have put money on virtual assets. 

In recent times, the number of projects promoting burn and buyback is increasing. Hence, it is essential to pocket a specific percentage of the digital token that is being burnt. Subsequently, it will be converted to a leading cryptocurrency and stored safely in hot and cold wallets.  

Greater chance of making profits – Before opting for Deflationary token development solutions, it is essential to focus on the tokenomics of the project. Thus, a specific amount of digital assets will be allocated for various phases like pre-sale, staking, burning, vesting among the team members, marketing, and airdrops. 

Hence, project founders have full freedom to deflate the token. They can buy back a specific amount of digital assets and make a heavy profit. After a while, the virtual assets get redistributed to the holders of the virtual currency (crypto and stablecoin). Moreover, extreme price fluctuations can be avoided. This happens by transferring the assets to the liquidity pool on a Decentralized Finance (DeFi) platform. Hence, there is consistency in the trading volume and market capitalization of the virtual assets. 

In the long run, investors can opt for shorting the virtual asset. Hence, they can take strategic positions by choosing margin trading facilities. Users can borrow a specific amount, choose leverage (5x, 10x, and 20x) and sell it off at an appropriate price.

Decrease in the supply of tokens – Eliminating a specific number of digital assets from circulation will offer value for investors who hold the deflationary tokens for a specific duration. Generally, this depends on the market conditions (bullish and bearish). Hence, depending on the number of burning attempts, the extent of token supply gradually falls. 

Offering incentives to investors such as staking, yield farming, and token swapping will be beneficial. Therefore, during large-scale harvesting of assets, investors will receive returns directly to their hardware and software wallets. 

Moreover, in the case of bearish market conditions, the fall in the supply of tokens will also result in a decrease in the demand for those digital assets. This results in price stabilization. It depends on the number of burnt tokens. Hence, the overall returns of investors will depend on aspects like the total amount of capital locked and the duration (short-term and long-term). 

A sneak peek into EverGrow ($EGC): A Deflationary Token Project

$EGC is an appropriate example of a Deflationary Token. The market capitalization and the trading volume of EverGrow are $276,205,343 and $529,611 respectively. Users can purchase the $EGC token on exchanges like BitMart and Pancakeswap. Operating as a yield farming and liquidity generation protocol, investors can hold $EGC tokens and receive passive income in Binance Stablecoins (BUSD). 

Moreover, users will get an 8% reward for every transaction (buy, sell, and transfer of assets). Interestingly, for every buyback and burn mechanism, around 2% of $EGC is received from every transaction and converted to Binance Coins (BNB). Hence, this leads to an increase in the price of the digital assets when tokens are transferred to the burn address. 

The special features of $EGC include automatic claiming of rewards and an anti-whale mechanism to prevent price manipulation and large scale of the digital assets. Moreover, the roadmap of EverGrow looks promising. It is planning to come out with NFT lending, staking pools, an oracle-based NFT game, and an EverGrow exchange next year. 

Wrapping Up

End your wait to grab the top spot in the crypto trading sector. Use our Deflationary token creation services and maximize your wealth soon.

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Marketing is my soul mate and writing is my side kick. Using my writing skills to share the knowledge of app development and upcoming technologies.