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If you follow the crypto market, you may have observed some altcoins with extremely high prices and those with nominal or very low prices. You should know that some of them may not even reach the hype their communities throw around them. Others, however, soar past points even without crypto influencers or communities.

Also, some of these hyped tokens suffer severe price inflation and offer little or no value, while others maintain deflationary protocols that drive the prices of the tokens higher. In this article deflationary coins will be explored, whilst looking at the long term benefits of Binance Coin (BNB), Ripple (XRP), and other deflationary tokens. This article will also introduce you to Parody Coin (PARO) — a meme coin keeping a deflationary protocol on its token.

What Are Deflationary Coins?

Deflationary coins are crypto with a limited supply. Cryptocurrency, like many areas of economics, applies the theory of demand and supply, which helps determine certain market values and situations. Deflationary tokens, for instance, are a true application of demand and supply: the higher the demand (and lower the supply), the higher price and vice versa. On the other hand, the higher the supply (and lesser the demand), the lower the price.

Inflationary tokens have an unlimited supply, meaning that the network or developers of the tokens continually create or mint new tokens, which can reduce the net unit price of the crypto. Deflationary tokens are assigned at fixed prices, instead of minting new coins, its developers or network continually burn tokens to drive high demand and create token scarcity. As a result of this, the token price is driven higher.

That is to say, all things being equal, deflationary tokens are more profitable than inflationary tokens like Shiba Inu (SHIB) or Dogecoin (DOGE). For instance, 1 Binance Coin (BNB) can fetch you over 3600 $DOGE tokens. Let’s see some examples below.

Examples of Deflationary Cryptos With Huge Profit Potential

1. Binance Coin (BNB)

Binance Coin (BNB) is a reference to a near-perfect deflationary token. Although its current unit price may make it not appear profitable, BNB is still one of the sought-after cryptos. There will only be 163,276,975 BNB tokens in total supply — anything more will be burned. In fact, Binance introduced an Auto-Burn mechanism to destroy tokens that are not in circulation to maintain the deflationary nature of its token.

2. Cardano (ADA)

Cardano (ADA) is another profitable deflationary token. You may confirm this in its low unit price below $1. There will only be 33,820,262,544 ADA tokens in supply, and anything more will be burned to maintain a deflationary value. Cardano may not be termed a perfect deflationary coin because it is yet to achieve its total supply order. In this case, ADA tokens will be minted occasionally until the total supply is fulfilled. Afterward, the network will regularly remove excesses from the blockchain through burning.

3. Ripple (XRP)

Ripple (XRP) maintains a deflationary nature for its cryptocurrency by burning transaction fees. Many protocols adopt this approach but not like Ripple (XRP) because it burns a large part of its transaction fees. Ripple has also faced a huge disappointment from the court over its pending lawsuit from the SEC. Although Ripple has convincingly proved otherwise that XRP is not a security, the SEC has not welcomed its position on the matter. Regardless, XRP is one of the top-ranking cryptos with over $20 billion in market cap, and many investors are actively partnering with the firm and adopting its product (XRP) as smart money.

4. Parody Coin (PARO)

Parody Coin (PARO) is new to the market. It is a BEP20 token which means it runs on the Binance Smart Chain. PARO is a meme token with a real use case. It will power the Parody Coin ecosystem comprising an NFT launchpad and marketplace for minting and trading parodied NFTs. Additionally, a DAO governance protocol for voting and decision-making on up-and-coming projects, etc. PARO will maintain a deflationary crypto protocol by burning part of the fees remitted during transactions on the protocol. This will help increase its unit price with time.

Learn more about Parody Coin (PARO) presale below:

Website: https://parodycoin.io/

Presale: https://presale.parodycoin.io/register

 

Disclaimer: This article is a paid publication and does not have journalistic/ editorial involvement of Hindustan Times. Hindustan Times does not endorse/ subscribe to the contents of the article/advertisement and/or views expressed herein.

The reader is further advised that Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.

Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the views, opinions, announcements, declarations, affirmations etc., stated/featured in the same. The decision to read hereinafter is purely a matter of choice and shall be construed as an express undertaking/guarantee in favour of Hindustan Times of being absolved from any/ all potential legal action, or enforceable claims. The content may be for information and awareness purposes and does not constitute financial advice.

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