Despite the price being down since launch, AAB has been a good story for AAX and its users. Early investors know that a rally during an initial offering is often followed by a sharp drop and, if the project is successful, a gradual but steady uptake.
AAB was launched right after the stock market crash that swept everything down with it – including gold and Bitcoin – but on the 16th of April, we successfully sold out over 9 million AAB in under three days. Since then we’ve organised flash sales that have each seen 500,000 AAB sold out in a matter of minutes, the fastest one in just 57 seconds.
In the months that followed the initial offering, AAX’s user base has more than doubled in size, and while previously we were recording daily trade volumes of under 20 million USD, in recent weeks we’ve seen daily volumes of over half a billion.
Unlike some exchanges that burn on a quarterly or weekly basis. AAX burns AAB on a daily basis and this is funded by 100% of all revenue earned by AAX on its Futures Markets. This rapid coin burning will continue until 50% of all 50 million AAB is destroyed.
In the meantime, AAX has implemented several use cases for AAB, from trading discounts, to fee settlement, but we’ve also developed also a savings product where users can accrue interest on their AAB holdings.
With AAB currently trading 60% below its initial price, and volumes on AAX Futures increasing, coin burns are eating away at the supply fast, with now more than 15 million AAB destroyed and only 10 million to go.
Here is what we believe will happen
By the time half of all AAB has been burnt, and a sense of scarcity sets in, we have planned a range of compelling incentives for HODLers to further drive the value of the coin. At the same time, AAB continues to provide utility across the platform which generates demand.
AAX is a fast-growing exchange that has steadily been rising in the ranks and as we proceed to offer a solid market and provide deep liquidity and build community, we believe our new HODLing incentives might even drive scarcity more effectively than our daily coin burns.
If conditions call for it, in the future users may also expect time-limited buyback campaigns, where trade volumes could be rewarded with buybacks from the market. The possibilities are endless, but in all cases, we are focused on bringing benefit to our users and AAB holders.
We believe AAX is a platform that grows together with its community, and ultimately AAB is the expression of that growth.