Bitcoin Forum

Usually, unsold tokens are burned after the end of token sale. I am just curious, why does the investors and bounty hunters frequently ask this question if they know already what will happen to the unsold token?
In addition, why does the unsold tokens are burned? Will if affect the volume or market cap of a coin?

I acknowledge every opinion.

Rarely unsold tokens remains in possession of the team, and this is worce than token burn. Usually token burn dont affect on market cap or price.

In some cases, unsold tokens could be distributed as a bonus to the investors according to their contribution, in addition to any bonuses that might have been given already, for example, in the presale.

If unsold tokens are burned = lower supply = scarcity = potential for a higher price.

It has become standard practice to burn the tokens which were left unsold, but  this is inevitably followed by dilution of participants in the crowdsale (the only exception is when 100% of the tokens are sold, i.e, ETH devaluation).
But I think this is the best way for unsold tokens, because all investors can be sure.

So it means, there are ICO also that do not burn the tokens instead, it will go to the team? If that so, I think it is unfair between investors and team. Unfair in a way that investors put up their money while the team will just grab the unspld tokens and they may double their profits.

I got your point!
Burning of token is good because if the supply is few, there is a potential that the token will move up specially if it will goes in big exchanges. Scarce supply have the tendency to surge.

So, burning of tokens are in favor with the investors? Well, it might good also rather than to possess it by the owner/s.

Thanks guys for consuming your time! I appreciate your effort to clarify it to me.

Usually but not always. That is the reason why investors as well as bounty hunters frequently ask such questions. Burning of tokens means a lot to both of them. It might mean an increase of the value of the remaining tokens or at least prevent a significant decrease. This is because the burning of tokens will usually follow the limits set by the demand. Secondly, the burning of tokens means it will be removed from the hands of the developers. This is an assurance that there will be no dumping done by the developers out of the unsold tokens.

This will lessen the supply that will make the demand higher so those holders are in favor of coin burning because the advantage is already upon them.
Yes it will.

burning unsold tokens is to make sure the coin price will increase & is not dumped by the team if they keep it to themselves. There can be 3 scenarios first the tokens will be burned, secondly they may distribute it to investor or distribute as an airdrop at later stage after ICO ends, lastly they may burn some portion & some portion they will reserve it for future investment needed to finance their project, but they will lock that tokens for some period about 6-12 months so it can't be used & hence to ensure their investors that they won't be dumping the price by circulating the unsold tokens in market.

You are literally asking questions which are obvious,of course the less supply the coin has the more potential value that it can have that is why these ICOs are burning their tokens,i am not going to explain any further how but the main purpose is,so their investors are going to have good returns from their tokens.

If the unsold token will not be burned and there will be inflation that makes the price will be very low. It will give a big impact to the final price of a coin. You can see some projects are not burning the unsold token and then gets stuck and never increase anymore.

Unsold tokens have the tendency to dilute the price of the token especially if the project developers decide to dump it.Usually most investor hope that the unsold tokens can be distributed to them and bounty hunters on the other hand wish they could at least have a share of it.Burning the tokens reduces the amount in circulation and subsequently could make the price moon.

what do u mean with "unsolded"?
i have a some "burned" (like do you said before) coyns- and if i right understand they was dead like his a projects team
but i heared that dead cryptos you may to sold for collectioner- but i dont know how it working....

Usually unsold token is destroyed, it affects the token volume, but if the volume is low and demand is high then the potential is higher

If unsold tokens are not burnt, they are same as free money for the team. There is a probability that they sell that tokens in the market after the end of ICO and it will cause the price to fall.

If the team wanted to create n number of tokens it is possible and thereby unlimited money, we need to have a transparent vision of the team and as an investor we need to know what they are planning to do with the rest of the coins, i do not want to invest in a project where they could chunk out unlimited coins and inflate the market with it and if they have a vision they would know what they are doing and a transparent answer to the maximum number of coins in existence.

These days most ICO doesn't burn the tokens any more, rather they share it to the investors who have contributed to the ICO or some will reserve it for future use, bounty hunters ask the question about unsold tokens because the more token sold the more reward for bounty hunters.

Every ICO project is different and the unsold tokens might get burned, goes to the team members, used as additional bounties or could go to those who invested in the ICO.  Read the whitepaper and it should have information on them. 

Unsold tokens are not waist. if in the market after a few time the demand increrases then the token will sale out. and if there is no demand you can wait for it .

I think the future of the unsold cards will be owned by the research team. Or it could be used as a reward for bounty hunters, investors, it burned ... It depends on the rules of each project and it does not affect the future value of the project.

From what i know ICO burn the unsold coin most probably is to incease the values of the sold coins as the amount flowing into the market is limited. Burning the coins can be a good stragety if your coins is highly sought for after ICO.

Unsold tokens are burnt for the price to be stable and increased in the future. I mean, if the remaining tokens will still be on the circulation, the original price of tokens may decrease as there are alot of existing tokens. Investors are asking that question to secure their profit.

not all unsold tokens will be burned because the investors or bounty participants make sure the coin is not sold in fuel or not. obviously if the coin is not sold in fuel it will stabilize price of the coin

Because the unsold token will reduce the total supply of the coin and the fewer the total supply is, the price of each token will be higher aswell. That's why coin like ripple can't reach a high price, because they have a huge total supply and if the price is high, the marketcap will be huge as well, even when they worth $3 the marketcap already bigger than some famous companies.

This aims to reduce the number of token available supply. If fewer existing token, or in other words the number is limited, it will create this token has a high value.

I think it is needed in order to not dump a price with a bunch of unused uncontributed coins, some ICO managers can also just leave tokens for themselves.

Great explanation. This is the best strategy to adopt in this scenario since the unsold tokens can end up hurting the investors in a big way if they landed in the hands of dumpers. I have observed many cases of dumping like this in the past which led to full scale dumping leading to the death of the coin/token itself in the past. Burning the coins/tokens is easily the best strategy. Locking also helps, but it does not seem to be as effective as burning the coins/tokens. These kind of strategies help boost the morale of investors leading them to HODL their coins and tokens for a longer period.

I prefer to wait and hope that this token will appear on the exchange. In any case, you do not lose anything if you keep them.

I learned that after the project finished the unused tokens would burn or they would return to the community development fund of the project in the future. But I think the solutions from the development team may be to use unused tokens that will be shared equally among the development team members.

I think the unsold tokens will stay in the dev and team and not going to burn because it's too soon to burned after the ico. the dev and the team did this to prevent if somehow their tokens getting decrease for the price after it's released in the market so they can make sure that the price of their tokens is not dropped too far. or maybe they can give the unsold tokens to their investor and the bounty hunter as an added bonus for their participating in the project so they can have more balance in their wallet. but maybe I am wrong because I don't really know about this.

The fate of unsold tokens depends on the strategy of the team. They can airdrop the unsold tokens to ICO investors like what INS did or burn it (like what the majority of ERC20 based ICOs are doing). Some also locks the token for a certain amount of time for token liquidity.

The unsold tokens can be burned by the authorities or we might call the project party. It's all said in the whitepaper. When the unsold token will be burned to avoid the drop or overload of tokens.

Actually their will not affected in lower supply as those ico project has setting their soft-cap and hard-cap limit. So i think if presale was reached up hard-cap limit, the price will going to higher in market, but if it is only reaching in softcap small area, even unsold token was burn, that couldn't help too much to push the price in the market.

people want to know everything they can about a project before they invest. burning tokens increases market cap for the token.

If the unsold token didn't burn, the confidence of the investors and community will be lost because the team could dump it anytime and the value will suffer. Burning unsold token will give confidence to investors because they know that there are only few coins left and scarcity kicks in.

Usually tokens are burned and this occurs by large suply above 1 Billion or a project with goals in the saturated market. In certain cases by amount the team contacts post sales remarks guaranteeing the sale or promotions of marketings to leverage the token. However, developers should devote themselves to knowing the market they are entering and to seek a sufficient supply for the profit, scarcity, and quality of the token in the market.

Greetings, I will gladly answer your question, see, in most cases unsold tokens are burned and the price of tokens increases accordingly, there are projects that freeze tokens up to a certain time

For me don't burn it because they can use that in future such as giving in airdrop, bonuses to investors together with the bounty hunters so for the meantime keep it up then release it when the time has come.

If the unsold tokens are nit burned, who will own them? What will happen if  they are sold?
The unsold tokens have to be burned, otherwise they will change the price of every sold token.

Typically for each ICO project, after the Token sale process ends, the unsold tokens they will distribute through the Airdrop campaign. But there are some ICO campaigns they distribute unsold Tokens for development teams as well as advisors. Alternatively, they may be revoked for future use to push the exchange rate for the cryptos after being indexed on exchange floors.

most of the projects that are currently selling the token and when the project is finished doing the ICO, as not all tokens sold out it will be burned, less so, in fact, I understand every project take these policies, but positive thinking of good policy.

if dev and team can be sportive and do not manipulate usually unsold coins will be burned, this is used to stabilize the sold coin and there is no monopoly element of coin available.

It is not leading to affect anything about the price or money that was put in. The coin burn might appear if there is not much investors and supporters. It is a bit affecting the tendency to go up higher, but this is only it.

If the ICO project has been launched, and is not a Scam, it means that the tokens( and some part of them) were sold, because they are invested in, so think for yourself. And if you do not one sold they will not be allowed on the exchange because their pricing will be = 0.

This issue has already been discussed, only with bitcoin. The question was of such a plan "what happens to bitcoin, which is lost. Lost access to the wallet or something." Answered so "there is nothing To worry, as the value of the lost bitcoins is distributed among the remaining bitcoins."It doesn't happen automatically or something, just, over time, when the turnover happens without bitcoin, the value of the rest increases.

I think a lot of people like having less coins in circulation as they feel that it can increase the price as there's less coins around, although in reality it doesn't make too much impact once they are burned until later down the line. Not only that, but if those tokens are unsold something has to be done with them so burning makes the most sense as otherwise the team have more tokens then they originally allocated to themselves so it all comes down to trust.

I think it is also good for unsold token not to be burn, but instead put on cloud storage, since just in case this coins bloomed like but not totally like as BTC did, then they can mine it using miners, right? Since this is kinda wasteful when the coin flew to the moon.

Thats not the case. I mean the coins are not always burnt and also if this is going to happen or not is always mentioned in the whitepaper or announcement.

If they are not getting burned then they will be most probably be available for the purchase in the later stages when the coins are circulated.

Burning affects the market positively because whenever they are burned it means nothing but the increased demand of that specific coin. Thus the prices rise for the same.

There are some case when ICO distribute the unsold token to their team and mostly to the company board, it is to support the liquidity (I think). But most of the time the unsold token/coin is burned. Why it is burned? It is simple supply and demand rule, when the total supply is less, the company hopes to increase the demand

I think he's just priceless and remains walking at the network, who produced the acquired debris in your wallet, well, I imagine so imagine it.

Thanks for your time in answering my newbie question! I think you are also right. It means that, it is for the sake of the investors to know how they will do to the unsold tokens. It is favorable also for the community to have a limited supply where we can assure that the price will have the potential to grow up. Now I understand! I think few knowledges more and I will become ready to be an investor.

it's natural that the investors or the bounty hunters ask that because they're afraid that dev sells a token in high quantities that will make the price go down, which I know that's what they're afraid of.

Base on experience, some team of developers airdrop unsold tokens to the community or distribute it as bonus on all their investors portions of purchases on perscentage basis but commonly it is used to be burnt. For the burning, it usually affect postively in most cases because it would reduce the number of total supply in market and this really have great impact on the token price. #justmyopinion

I will keep up offering unsold WSPU2 through my faucet and like we can see it the free token are expensiver than the token from the ICO.


We see:
$0.00287 within the airdrop faucet.

We know:
$0.001 through the ICO.

It is hard to believe that this will deacrise the WSPU2 price of the token on the ETH blockchain.
Ok...one has to trust the token creator...but if the price is so high on the airdrop faucet it means that the people trust...if not they would not buy so much over the ICO price.

Sometimes these tokens got burned at the end of the token sale as you have mentioned. But it happens not always.
If tokens are burned, it may increase the price of every token if the product will get interest from the market. Otherwise it will be coin with miserable trading volume which will never reach coinmarcetcap.
But sometimes unsold tokens being distributed to private offerers. For example the price of token is $1 but these buyers with a lot of money can buy coins for $0.1 and it will be private so nobody sees these actions. And then it is normal to sell till $0.2 for them, they will gain huge profit even if the price is under ICO ;)

I think tokens are lame status. If anyone can make an token, who cares?

Hey look I made a token called liteshares!

https://wallet.crypto-bridge.org/asset/LITESHARES/

I do not literally asked the question sir! It is my own way just to know about the unsold tokens because it was a confusion in my mind since I am newbie in cryptocurrency. I believe that there is no bad in verifying some thoughts in our mind specially if we are new in anything.