Many native tokens also become stock to reduce the number.
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Because cryptocurrencies aren't tangible, people can't literally light them with a match, but the process is equivalent to tossing dollar bills in a fire. Some cryptocurrency scammers use promises of a "burning mechanic" to artificially inflate prices for their tokens, while others might redirect "burnt funds" to a personal crypto wallet. The limits of this comparison have been picked up on by those within the industry such as Spencer Bogart of Blockchain Capital: The value of a stock repurchase is its ability to increase the cash each unit of stock is entitled to which, under a discounted cash flow valuation method, will increase the value of said stock, other things being equal.
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