Pre-Burn Loading

Pre-Burn Loading is a process I have named after seeing how large supply tokens and coins often purposely launch projects with huge supplies with the sole intent of loading their bags before a token burn. How does this help? Well for one, in order to secure 1 million coins of an asset that costs 23 cents, you’ll need to invest $230,000. However, what if that same project was sitting at .0001 cents at one point? To secure 1 million coins, you would only need to invest $100. Would you rather pay $230,000 or $100? This is often overlooked because a lot of projects that are priced at these levels are difficult to find and may not be on the best exchanges. Nonetheless, there are some hidden gems of the world that can be found that are priced fairly low but with huge upside potential.

Let’s examine Telcoin. According to CoinMarketCap, “Telcoin project aims to partner with leading names in the telecoms industry, like Verizon and AT&T, to remove the hassle that exists between billing platforms and mobile money.The main focus of Telcoin is the remittance market, where Western Union is currently the clear leader. Telcoin is partnering with global telecoms and mobile money platforms to provide users with high-speed, low-cost digital remittances to mobile money platforms and e-wallets.”

Telcoin was priced around .0001 cents and made its way to almost 1 cent this year. In order to buy 1 million Telcoin at 1 cent, you would have to drop $10,000 to secure that. Again, $100 could have secured that same amount of coins when it cost .0001 cents.

Years ago, I put $50 on Telcoin and secured around 500K coins. I made a big mistake. I underestimated the company instead of investing properly. If I could go back, I would have invested $1,200. That would have given me 12 million coins. At the time of writing this, Telcoin is sitting at .0072 cents. I would have nearly $86,400. Think about that. That means for someone to buy 12 million of Telcoin today, they would need $86,400. Ouch!

Telcoin’s supply is around 100 Billion. That is a huge supply, and often it is difficult for price to increase with such a huge supply. But, what if a token burn occurs?! Bingo! That would then change the game and drastically affect price. This is where Pre-Burn Loading makes sense. It’s basically an open invitation to load up at discounted prices, because in the future, scarcity will inflate the price.

Spendcoin, another great project which was recently rebranded as Strike Finance, had a token burn and watched its price drastically rise before fully converting over to the new coin. We have seen numerous projects burn their tokens, such as Crypto.com (CRO), Tron (TRX), Binance Coin (BNB), and many more.

Pre-Burn Loading almost feels like a cheat code: purposely over-inflate the supply in order to allow your holdings to be built with less effort. Then deploy a burn and watch price rise. Binance Coin was once 10 cents. A mere $50 invested would have given you 500 coins. Those same 500 coins would be worth $278,220 today. YIKES! You see how the person who just invested $50 without actually loading missed out? If they had invested $200, it would now be worth $1.12 million. Binance has done a total of 15 token burns, the last one being over $595 million worth. Now you see the pattern. These projects appear to have purposely inflated their supply to keep prices low for accumulation.

XRP to me is the ultimate pre-Burner. Ripple is sitting at 100 billion in their supply. A lot of people are throwing out huge potential future prices such as $100 XRP, or even a $10,000 XRP. As outrageous as that sounds, don’t discredit it. Why? Because if a coin burn occurs, we could in fact see those prices.

Check out this article: https://www.benzinga.com/markets/cryptocurrency/21/04/20754050/ripple-could-burn-over-61b-of-xrp-tokens-ceo-says

In the end, every project carries risk. We will never know who will do a burn. However, when a great project is priced at a great discount, don’t take lightly the opportunity of loading up. Don’t be like me and buy $50 worth of a project. Sometimes our lack of faith is shown in how we invest.

---

Stay in the Know!

If you are interested in investment strategies and other cryptocurrency education, join us in our Members Area!