The price of the LOOKS cryptocurrency on the LooksRare platform has surged by 42%, reaching attention-grabbing levels. This increase is attributed to the token burn process. In a social media post, the platform announced the start of the token burn process and the reduction of LOOKS supply.
As part of the “INFILTRATION” event, LooksRare revealed that 25% of the used LOOKS tokens will be destroyed, and 50% of the total fees will be used to buy back LOOKS from the market. This development has led to a sudden price increase in the cryptocurrency and has been widely interpreted by the community.
The comments generally indicate the potential for the cryptocurrency to progress towards $1. The circulating supply of LOOKS is currently stated to be 961,240,353, with a maximum supply capped at 1 billion tokens.
Token burning is a mechanism commonly encountered in crypto projects. With this method, projects withdraw their own tokens from circulation to reduce total supply and create scarcity to increase the value of the remaining tokens. As seen in the case of LOOKS, such moves can lead to short-term price increases.
However, it should be noted that token burns may not always result in price increases, as the market sentiment and investors’ reactions play a significant role. The effectiveness of token burning can vary depending on the project and the overall state of the crypto market, and sometimes it can be met with skepticism by investors.