Cryptocurrency exchange and gambling platform, Rollbit, made a surprising announcement; it will buy and destroy, or “burn,” its own RLB cryptocurrency tokens every day – a decision that has propelled token prices more than 63%. This routine will be dependent on Revenue generated by the platform.
Well known for its extreme leverage offerings – a staggering 1000x, Rollbit is more than just a trading platform. It also functions as a veritable entertainment house, facilitating sports betting, arcade-style games, and a unique tokenized jackpot. The platform’s performance has been impressive with data revealing that within the last day, the platform oversaw trades totaling beyond $2.5 billion.
The co-founder, identified as “Lucky”, rationed the funds for this substantial token purchase and subsequent burn. He declared that the funds would be collected from multiple sources: 30% of fees from crypto futures, 20% from sports betting, and a minor 10% from casino games. The bought RLB tokens would then be burned, or sent to an address that isn’t controlled by anyone – effectively subtracting them from the total supply permanently.
The revenue accrued by Rollbit surpassed the $2 million mark in the last 24 hours from these proceedings, indicating a hefty sum destined for daily RLB purchases – excluding operational costs. This scheme may potentially apply constant buying pressure on the RLB token, as long as the platform continues its growth trajectory and maintains its popularity.
Rollbit stands out as one of the fastest-growing crypto protocols this year – a feat attributed to its obvious market fit and broadly favorable reception among its target audience; gamblers and traders. Offering cryptocurrency-based games and related experiences have played a massive part in attracting users to the platform, despite the broader market tilt towards the bears.
In Lucky’s words on Wednesday, “Rollbit has managed to thrive the last several years, regardless of market conditions, due to the diversity of our products. Bull or Bear, our hybrid offerings have allowed us to generate consistent revenue”.
As the market processed this development, RLB was last traded at 16 cents, reflecting the impact of Rollbit’s new burning initiative on the cryptocurrency’s value. Nevertheless, it remains to be seen how this move will unfold in the long-term particularly in relation to its assured supply-demand dynamics. Edited by Parikshit Mishra.
Source: Coindesk
