OKX Completes Its 27th OKB Token Burn Event, Burning 31.15 Million Tokens

In an audacious attempt to cut down the number of its native tokens that are in circulation, the exchange OKX has announced this week that it has completed its latest token burn event.

In a move that has been closely watched by the broader crypto community, exchange OKX has announced that it has completed its latest token burn event.

In this event, they have burned 31.15 million OKB tokens. They say that this takes the total burned number of OKB tokens up to 171 million.

As the overall crypto market seems to be facing an extended downturn, it seems that exchanges like OKX are trying to use token scarcity as a way to maintain their tokens’ prices.

OKX completed its 27th OKB token burn on March 14, burning 31,158,862 OKB worth $1.32 billion—a record high in both quantity and total value. So far, OKB has cumulatively burned 171 million tokens, leaving 129 million in circulation, for a 57.10% burn ratio. OKX previously stated…— Wu Blockchain (@WuBlockchain) March 14, 2025Implementing systematic burns of OKB is a key part of OKX’s strategy for managing supply and demand. This is unique to cryptocurrency exchanges, as most traditional financial markets cannot impact their asset’s supply like this. And under current regulatory scrutiny, most wouldn’t even attempt. Yet crypto exchanges can and do. They have a vested interest in ensuring that their tokens maintain value. And this is what makes the current strategy of OKX potentially harmful to both users and the larger market.Token Burns: A Deflationary Strategy to Combat Declining Spot VolumesOKX’s latest burn event comes at a time when spot trading volumes are declining across the major cryptocurrency exchanges. Conditions in the market are tough, buffeted by forces that are both global economic and long-term in nature, and a number of exchanges are exploring user engagement ideas in an attempt to stop their partial vaporization. OKX has been implementing ideas to engage users, offering the chance to win the equivalent of $30,000 in Tether (USDT) as a carrot to keep its customers around for the kind of token burns that would partially inflate the value of the exchange’s ERC-20 token.

These periodic burns create the illusion of scarcity, a tactic that can drive speculation and attract more investors. However, critics argue that while the short-term effects of such burns may be noticeable, the long-term impact on the overall value of a token remains uncertain. The burn strategy essentially works by buying back loyalty from token holders, particularly when the market sentiment is low and trading volumes are down.

In times of low demand and declining prices, token burns act as a