In 4 days, Synereo (AMP) will do a coin burn, and 33% of the coins will be taken off the market. The team is doing this because it is capable of meeting its objectives, without the extra coins. This event has already been announced on the platform’s twitter pages, and the reception is overwhelming. People are eagerly looking forward to this date.
So what are the likely implications of this burn? Firstly, we are likely to see a surge in trading volumes pre-burn. That’s because people will be looking to take advantage of a possible price rise after this event takes place. This sudden increase in buying pressure could possibly see Synereo grow in value significantly between now and burn day. Signs of a possible price rally are already evident in this crypto’s price action in the last 24 hours. In this period it has gained close to 10%. Volumes have spiked too and are growing, indicating an increased investor interest prior to the coin burn D-day.
This coin burn could also enhance investor trust in this crypto. That’s because the team has demonstrated that they are willing to take off unnecessary coins from the market, in a bid to continue stabilizing the value of this crypto. This is clearly defined in the platform’s website where they have stated that,
“Synereo has no intention of holding more AMPs than it needs to assure the development of its products and growth the networks they underlie.”
That’s the true definition of a project that genuinely cares about not just the project itself, but also the value that investors get. This is a sure way of attracting long-term investors into the project, and help push up the value of Synereo (AMP) in the long-run. Besides, investors now have the incentive to hold on to this coin in the knowledge that more coin burns could take place in the future.
But the most interesting thing about this coin burn is that it is coming at a time when the Synereo team is looking to cooperate with Sony, one of the largest media content corporations in the world. Whether such a collaboration takes place anytime soon or not, the announcement has come at a time when it could create some serous buying pressure before, during and after the coin burn, in an already excited market. Volumes are already surging and if they continue in their current exponential rise, we could easily see the value of AMP hit $1 in the next one week.
In essence, whether you are a long-term investor, or a day trader looking to profit from volatility, this is an excellent time to hold Synereo (AMP) coins. This is a crypto that has everything going for it, and could easily revolutionize the content industry. The coin burn is just a welcome catalyst that will give it a much-needed value boost, through higher volumes and an increased demand, chasing a fewer number of coins.