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https://warpcast.com/~/channel/airstack
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Fibo
@fibo112358.eth
Ⓜ️oxie Quiz #1: Would a Fan Token's price go to zero if every holder sold? A: No. This is because of the buy and burn mechanism. When you check the holdings percentage on the Airstack website or MoxieScout, it only shows active wallets. However, Fan Tokens are also sent to a burn address (0x000...) after auctions and buy and burn events. Once tokens are sent to this address, they’re permanently removed from circulation. Here’s an actual example: I once held 99% of a Fan Token where the creator became inactive, and all other holders sold their tokens. After I sold my stake, here’s how the price changed: (1/2) 👇️
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Nicklas
@mr-silverback
Its also do to every buy order and the auction. When the auction closes....almost all the money from auction goes into the bonding contract for reserves. So even right after the auction you wont lose everything if everyone sold. Every purchase does the same thing. When you buy a fan token - moxie is put into the bonding curve for reserves. So all the fan tokens are covered at purchase by a reserve value that covers at least a portion of the cost. Buy and burns do the same thing except the actual fan token is burned so it doesnt exist to be sold later. So all the reserve added from this purchase just increase the reserve value for all the other tokens. Eventually the last man out can even have a huge gain over auction value....because so much buy and burn has taken place.
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Fibo
@fibo112358.eth
🔥
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