Thursday, November 16th, 2023 – Two days after launching, $ETHETF coin has announced a 21 million token burn program, reducing total token supply by 21%.
The price of $ETHETF jumped 25% on the news to $0.01601 and is now up 12% at $0.1448. News of the burn program comes at the same time as fund giant BlackRock officially filed its application to issue a spot Ethereum ETF.
In X/Twitter and Telegram posts, the ETHETF Token team has said that the tokens will be burned over a 21-day period, starting with 1 million tokens burned today.
Burning is a method whereby tokens are sent to a null address on the blockchain that only has a receive function, effectively removing from circulation tokens sent to it.
By removing 21% of the total supply it helps to boost the price of the remaining tokens. For those considering buying the token, the burn program is a strong demonstration of the team’s commitment to the project and its intention to continue seeking out ways to enhance the value of the token.
21% supply burn + 2% transaction buy burn = $ETHETF price pump
Linked to the spot Ethereum ETF theme, $ETHETF already has a burn mechanism, whereby each buy attracts a 2% token burn. These buy burns will cease when a spot Ethereum ETF is launched. Today’s news of the 21% burn program hugely buttresses the value-creating deflationary properties of the token.
Yesterday, in another sign of the team’s commitment to the project, more than half a million dollars of liquidity was locked. This move makes trading much smoother by facilitating both smaller and larger trades. It also is something that traders will look out for when seeking reassurance that a project is not a rug pull.
$ETHETF now trades on the V2 and V3 liquidity pool versions of the Uniswap decentralized exchange. V3 has locked liquidity of $572k while V2 has liquidity of $241k.
The token has a market cap of $1.35 million and 405 holders, meaning it is early days for the coin with plenty of scope for upside progress. Following the strategic move by the team, the next three weeks will be price-supportive, as, no doubt, will be the news flow.
BlackRock Ethereum ETF Fever can push ETHETF Token price higher 10x or more
BlackRock’s Form-S1 registration filing at the US Securities and Exchange Commission (SEC) states that the fund’s name will be iShares Ethereum Trust, just as its Bitcoin stablemate will be named the iShares Bitcoin Trust.
When the largest asset manager in the financial industry comes calling, it is time to sit up and take notice for all those not already inside the crypto tent.
BlackRock doesn’t make applications for ETFs unless it thinks it can gain approval for them. Bloomberg analysts put the chance of a spot Bitcoin ETF being approved at 90%. If the Bitcoin variant succeeds then an Ethereum product is likely a shoo-in.
The SEC has previously failed to approve spot Bitcoin products because of the lack of surveillance in the market and the dangers of price manipulation.
However, in a recent court ruling the judge called out the SEC for being inconsistent and wrong by approving a futures product that depends on the same underlying pricing environment while applying a higher bar to a spot product.
On the second point about surveillance, BlackRock is teaming up with Coinbase in a ‘surveillance-sharing agreement’ to explicitly address those concerns.
A steady flow of corroborating nuggets of news is expected over the coming days and weeks, all of which will reinforce the value of the $ETHETF token, making 10x gains a reasonable probability for this ETH derivative coin.
2% Buy Tax: An innovative feature to enhance community growth, automatically burned with each purchase
After the SEC approval of the #Ethereum Spot #ETF, the buy tax will be lifted, signifying a major step towards mainstream #Crypto adoption!$ETH #CryptoCommunity #Web3 pic.twitter.com/7YhR9vH2E6
— EthereumETF_Token (@ETHETFToken) November 16, 2023
FOMO will grow as spot Ethereum ETF news flow hots up
All those looking for a way to play the spot Ethereum ETF theme are highly likely to come across ETHETF Token while conducting their due diligence research.
Choosing to introduce the supplementary burn program at this time is a masterstroke. There is nothing like rising prices to encourage more buyers and further rises in price. Market participants watching this price action will be likely to succumb to FOMO.
For traders and investors hunting for a way to leverage the spot Ethereum ETF frenzy, $ETHETF presents a solid way to get ahead of the crowd. It is the perfect way to ‘buy the rumor’. And because $ETHETF buyers are getting in early, well before the ETF itself is launched, they are protected against any temporary ‘sell the news’ sell-off.
Ethereum is the most-used blockchain for running applications based on smart contracts and as such is the base layer of Web3 decentralized applications. There are many other blockchain ecosystems vying to be Ethereum-killers, but none comes close to Ethereum.
But you don’t have to wait for the approval by the SEC and the subsequent launch of a spot Ethereum ETF, because $ETHETF is already trading on decentralized exchanges, enabling smart traders to get exposure to the Ethereum ETF investment theme immediately.
To purchase the ETHETF Token, connect a crypto wallet to Uniswap, copy and paste in the contract address to make sure you are buying the correct coin, and then make your purchase. Be sure to have at least $20 spare in your wallet to pay the transaction gas fee. You can also buy the token using the Uniswap widget available on the ETHETF Token website.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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