CoinEx Burns Nearly $10 Million in Native Tokens Amid Deflationary Push

HONG KONG – January 12, 2026 – Global cryptocurrency exchange CoinEx has finalized its 12th monthly token burn for 2025, permanently destroying 14,142,461.15 of its native CoinEx Tokens (CET). The action, valued at approximately $588,595, marks the culmination of a year-long campaign to reduce the token's circulating supply and reinforce its value within the exchange's ecosystem.

This latest event is part of a disciplined, long-term strategy initiated in 2021, where the exchange commits to a permanent repurchase and burn mechanism. According to official figures released by the company, this consistent effort has had a significant cumulative impact on the token's supply dynamics. As of early January 2026, the total number of CET tokens ever burned has reached over 7.41 billion, leaving approximately 2.54 billion CET in circulation.

A Strategy of Scarcity

The core of CoinEx's approach is its "repurchase and burn" model. This mechanism involves the exchange using a portion of its own revenue to buy CET back from the open market at prevailing prices. These repurchased tokens are then sent to an unspendable address, effectively removing them from circulation forever. This method directly links the health and activity of the exchange to the reduction of its token's supply, creating a deflationary pressure that is designed to benefit long-term holders.

Over the past twelve months, from February 2025 to January 2026, CoinEx has repurchased and burned a total of 166,822,892.30 CET. The aggregate market value of these tokens at the time of their respective burns amounted to approximately $9.30 million USD. This sustained financial commitment underscores the company's view of CET not as a short-term promotional tool, but as a foundational asset. By methodically reducing supply, the strategy aims to increase the scarcity of each remaining token, which, assuming stable or growing demand, can theoretically lead to price appreciation over time.

This deflationary model has become a popular tool for projects seeking to create what some investors term "digital gold"—an asset that becomes more valuable over time due to its diminishing supply. For CET holders, these regular, transparent burns provide a predictable schedule of supply reduction, fostering confidence in the token's long-term economic model.

The Competitive Landscape of Token Burns

CoinEx's strategy does not exist in a vacuum. The practice of token burning is a widely adopted mechanism among leading cryptocurrency exchanges to enhance the value proposition of their native utility tokens. However, the methods and frequency vary, creating a competitive landscape of different tokenomic models.

Industry leader Binance, for example, conducts large-scale quarterly burns of its BNB token. These events are tied to the exchange's trading volume and profitability and often involve hundreds of millions or even billions of dollars' worth of tokens, making them highly anticipated market events. Similarly, the KuCoin exchange executes monthly burns of its KCS token, using 10% of its profits to repurchase and destroy them, creating a direct link between platform success and token value.

CoinEx’s monthly burn frequency aligns it with the consistent, predictable model used by KuCoin, offering token holders a regular cadence of deflationary activity. While the absolute dollar value of each CoinEx burn may be smaller than Binance's quarterly events, the consistency demonstrates a steadfast commitment. This regular, almost routine, reduction in supply is designed to build sustained market confidence rather than relying on the speculative hype that can surround larger, less frequent burns. The transparency of the process—publicly announcing the exact amount burned each month—further strengthens its position.

Powering an Ecosystem Beyond Price

While the deflationary aspect of the CET burns often captures headlines, the token's fundamental value is derived from its utility within the broader CoinEx ecosystem. Established in 2017 by the team behind the ViaBTC mining pool, CoinEx has grown to serve over 10 million users in more than 200 countries, offering a vast selection of over 1,400 tradable cryptocurrencies.

Within this extensive platform, CET functions as a vital utility token. Its primary uses include providing holders with significant discounts on trading fees, a powerful incentive for active traders to hold and use the token. Furthermore, CET is often used for participation in platform activities, promotional events, and potentially for access to new features or services. This integrated utility creates organic demand for the token that is tied directly to platform usage.

The repurchase and burn mechanism creates a symbiotic relationship: as the exchange grows and generates more revenue, it can commit more capital to buying back and burning CET. This strengthens the token's value, which in turn enhances its appeal as a utility asset, encouraging more users to hold it for benefits like fee discounts. This positive feedback loop is central to CoinEx's strategy for creating a sustainable and self-reinforcing ecosystem.

A Commitment to Transparency in a Volatile Market

In the wake of several high-profile collapses within the crypto industry in recent years, user trust has become a paramount concern. Exchanges are increasingly judged not just on their features or fees, but on their verifiable commitment to security and transparency. CoinEx was one of the earliest platforms to address these concerns head-on by implementing a Proof-of-Reserves (PoR) system.

Using a Merkle Tree data structure, the exchange allows users to independently verify that their assets are fully backed 1-to-1 on the platform. CoinEx has committed to publishing these PoR audits monthly, providing a continuous and verifiable layer of security for its users' funds. This dedication to financial transparency is a critical pillar supporting the entire ecosystem, including its native token.

The public and consistent nature of the CET burning program acts as another layer of this transparency. It is a publicly fulfilled promise to the community, demonstrating that the project is adhering to its stated tokenomics. In an evolving global regulatory landscape, where authorities from the European Union (with its MiCA framework) to the United States are scrutinizing crypto-asset providers, such proactive measures in transparency and financial discipline may prove to be a significant competitive advantage. By maintaining a clear, predictable token model and proving its reserves, CoinEx aims to build the long-term trust necessary to thrive in a market that is increasingly demanding accountability.