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El Hippo meme coin project is burning $150,000 worth of HIPP on Dec. 19, representing 2% of the total supply. The burn is weeks after listing on Bitget and prices rallying to an all-time high.
HIPP price consolidates after retracing from an all-time high
El Hippo prices soared to an all-time high in December 2023, reaching $0.0000000133, a 460% increase after launching in August.
El Hippo has been successfully listed on MEXC and Bitget, which has helped raise its public profile and supported price.
Additionally, a $54,000 airdrop seems to have contributed to its success. More airdrops are planned for the future.
El Hippo rewards its community with $700 every two weeks via the Zealy campaign.
Prices rallied after listing on Bitget. Later, it retraced as users cashed out their rewards from the $54,000 airdrop.
However, prices later stabilized at around $0.0000000076.
The El Hippo project now has over 100,000 followers online and 10,000 HIPP holders, pointing to growth.
The scheduled $150,000 token burn
El Hippo is burning 15.7 trillion tokens, or 2% of the total supply worth around $150,000 at the time of the announcement.
A token burn involves permanently removing tokens from circulation, reducing the overall supply and making them scarcer assets.
This action tends to precede price increases in other coins. It can be equated to the Bitcoin halving event which reduces the amount of newly minted coins.
While there is no guarantee that the HIPP burn will support prices, it may catalyze demand.
Meanwhile, there is a spike in El Hippo’s online popularity, reminiscent of the early days of other popular meme coins like Shiba Inu (SHIB) and Dogecoin (DOGE).
This growing interest could support prices, especially considering HIPP’s relatively small market capitalization of below $6 million.
What happens next?
It’s tough to predict how token burns will affect prices.
Some, like LUNC and USTC, see a big jump, while others may not. Token burns happen in a busy market with many factors at play.
When a project announces a significant token burn, it’s an event to watch, even if just from the sidelines. Analysts will likely monitor HIPP prices to see what happens next.
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