Warren Paul Anderson: Token buying and destruction mechanism may suppress the volatility spillover effect of Bitcoin and Ethereum

Warren Paul Anderson, CEO of Imua, said the token buy-destruction model could significantly affect the volatility spillover effects from small cryptocurrencies to major assets such as Bitcoin and Ethereum. He noted that the results depend on the unlocking structure, favorable clauses may amplify the spillover effect, while aggressive locking mechanisms suppress the spillover effect. Anderson stressed that auction-based mechanisms, such as Imua’s First Allocation Auction (IDA), are especially effective for newer tokens that are inefficient in price discovery. IDA transfers 75% of winning tokens into buy-destroy wallets to relieve selling pressure and enhance sustainability, while 25% of winning tokens will be used to support the project team. This approach aims to address criticisms of high FDV, low circulation issuances and improve the long-term token economy.