Warren Paul Anderson: Token Buy-And-Burn Mechanisms Could Damp Volatility Spillovers Into Bitcoin, Ethereum
Posted On September 8, 2025
Token buy-and-burn models could play a significant role in shaping how volatility in smaller cryptocurrencies spills over into major assets such as Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), according to Warren Paul Anderson, co-founder and CEO of Imua.
When asked whether such mechanisms might amplify or reduce correlations with leading tokens, Anderson explained that outcomes depend heavily on how unlock terms are structured.
“Depending on the unlock terms, you could see either an amplification or a dampening of spillovers into majors. Favorable unlocks may amplify spillovers whereas aggressive locks may dampen spillovers. The token buy and burn mechanism helps to alleviate selling pressure, …
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