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Deflation tokens also known as self destroying tokens are quite a new entered concept in crypto where supply decreases with the time and price is speculated to go higher if demand remains at least the same.
For example BOMB.
BOMB is one of those deflationary tokens where there is no real product and admins are just hyping the token over the concept of deflation. Have a look at twitter handle
twitter.com/bombtoken
Point for all the talk is these projects are just a waste of time and funds if you dont have any real product and rely on just creating hype.
And another lesson is these things cannot work and this concept is failed with no real product.

I'm afraid this deflation token will end up exactly just a deflation token in which its value is going to deflate along with its supply. I don't understand why the developers will come up with this very blunt design. This is clearly designed following the economic principle that when the supply is decreasing while the demand is increasing or even kept the same, the value of that particular stuff will increase. This does not apply to this token because the demand is questionable.

Coins like this are often fraudulent and unrealistic. because deflation can only occur when there are many people who are interested in that asset and have a high demand for that product. Bitcoin, for example, is famous and sharks are constantly manipulated by sharks. so "deflation" happens to bitcoin. For Bomb, a new token has nothing real and no real community.

It's pretty similar concept to any pyramid scheme. It only thrives on value and people who are buying it after you are basically supposed to pay more, because of declining supply. Everything on these coins just screams scam but as every scam, they can go up before the hype runs out.

I dont see any sense of creating these deflation tokens. Imagine there is no product or services rendered by this type of token also no admi or developer? How could this have a value? this will only add on the garbage tokens that many are complaining or dont have value.

The only thing that will make it valuable is the manipulations if whale that willing to gamble or attract newbie to invest with it and create some hype about it.

Investors only care about profits not concepts anymore, bomb token have no real use cases but its deflation talent makes it a good choice of investment for many and few people have make big gains from bomb token already

I will try to look at that concept differently.
Deflation tokens concept is a nice idea if well implemented especially with the reduction in the circulating number of the token in question ( It shall give the token all the advantages of deflation economically )
I also respect the thinking power of the team that thought it and brought it into existence.
I however agree with everybody here that such concept must have a working product.

It is another kind of fraudulent activity I have invested in some pos coin when the POS token was giving good profit example POS token it was giving good returns for holders just based on proof of stale concept all of sudden one day telegram channel stopped working next website gone down then huge drop in price finally it became nothing . This kind of new conveptvscammers observing they hype and sell fnally it will become nothing.

Dynamite token is the next big hyped deflation token today and this token is been listed on good exchanges as well, i won't be surprised if it get listed on huobi or binance because deflationary tokens are way too over hyped and people are rushing them

So does it provide a service or has a product?

The concept of deflationary token was first introduced in 2017. Here's something that's interesting about deflationary tokens, it seems that nobody wants to spend them and contribute to the burning. Investors seems more content in holding but what they don't realize is that the supply won't simply go down. The only time they move their tokens is when they sell it lol.

As I have done with taking a sight on the information of Dynamite,
they don't have a product but they provide services like for example, community-based and also they are conducting a social experiment.

First bomb and now dynamite what's next atomic?  :D .  Lol it's too obvious what they want to do creating a hype and make money from worthless token , then move to another project and then make another hype so they accumulate money from investors that want to earn in short period of time.

That idea has already used by so many scam icos and anything that related to the deflation should be considered a scam. There is not point to take it as a good idea and that's the worst idea ive ever seen. So many threads have already discussed that. Not usage and keep burn and burn crap coin.
The coins that used that idea have been creating for scamming purposes only and no more. The smart developers will not work on such a crap idea. Whales even not interested to trade that crap coin consider about they can spend it on a better coin.

I do not think deflationary is a nice concept because it will create a centralization which is not good. as Bttzed03 said, it was first introduced in 2017 but people did not care about it because it did not bring any benefit to the network and the community. every project that promotes deflationary as their main slogan is a shit project, none from them have a working product.

It usually happens when more investors will fall unto this shady projects who created hype on their end. Once it occurred we can't control the situation but ride on their strategies, but in due time failures will prevail which disappointed everyone who's following their community.

I consider anyone buying into the so-called deflationary tokens as a newbie who is yet to understand the reality about crypto investment. The concept is pointless from onset, I was so astonished when BOMB price went up drastically due to hype, many people who foolishly bought the top got burnt and that should be a lesson. Many new "bomb-like" tokens were launched afterwards by mostly scammers I presume and people still got trapped. We all need to be wise, don't just buy into tokens because you think it's got hype.

Speculative project does no good to the industry, we need project that solves real life problem that's projects with real product just as you have stated. The idea that the industry is a free market is the reason we're seeing concept like this pop up every now and then. Supposedly this concept are been merged with projects with real product and not just those profiting from hype and promise that the price will continue increasing then the idea would had been a wonderful one.

Currently other projects are burning their tokens occasionally to reduce supply and increase demand. This strategy is similar to that of the deflation tokens but the deference is in the quality of the project and their contributions to the industry. Don't invest mere on the fact the supply of a token will keep on decreasing technically meaning the price will keep increasing, without demand the project is as good as dead.

The reality of deflation tokens are they have no working products or a real use cases yet many investors are rushing them hoping that in a few years they will get rich, i won't say this is impossible because once upon a time shitcoins did make some people rich in crypto space but now its no more about hype, the next bull run might not take the ride along with shitcoins

I do not have information about the bomb, but according to CMC, it is still trading. In fact, it is possible to see such projects on the Wave platform. There is no benefit, only a few people make a profit from each other. At first, big fishes create hyip, then the little ones fall into this.

You're correct, the idea of deflationary tokens is not a bad one, neither is it as scam as some people may think, but the projects are coming out with just that strategy alone and that's very foolish, you cannot just create a coin and burn a particular percent at a particular time and expect that to be the master plan that'll lead to the success of the product.

If the coin is good, has a good use case, real good product, then burning tokens may not be a bad idea as the supply would be reduced at intervals while since the product is good, it will attract more users and the demand would go up, which would increase the price of the coin too.

https://coinmarketcap.com/currencies/bomb/

although like coins that are not serious, I check they still have good endurance, I do not follow this coin, but there are interesting things where deflation can be something powerful, but there must be a usability implementation, without this, demand will not increase and will only be solid as a premium collection. Their ideas are very different from most of the others, I have never seen anything like this.

I don't really think people still believe in deflationary tokens anymore, all of them have no concise project aim. By the way, the whole idea is messy, and will never be adopted. Why will I want to buy into a token that keeps depleting whenever I do transfers, doesn't really makes sense to me and I wonder why anybody ever bought in.

The reality here is that both the project devs and the people shilling it are only there for the money they can make from it. I am flabbergasted that nobody is talking about the fact that this project has no application or value to every day use yet they are hyping and buying it

That's true how can you choose to gamble on experimental token like "Bomb Token" its risky because its just an experiment and no guarantee or value. in other words its a hallow project, Bomb was created for an experiment purposes on how deflationary token works. no product, no use case and no development it means nothing.    

BOMB also has this kind of feature where 1 BOMB gets destroyed whenever a transaction is completed. But due to such feature a crypto cannot go further if no product or service is given.

I thought people could not get any dumber, but a "self-destructing currency" changes my perspective. It is just foolish.

"Each time a Bomb is transferred, 1% of the transaction is destroyed."
https://bombtoken.com/

So this coin encourages users not to use the coin. ;D

You guys should understand that cryptocurrencies except stablecoins are not pegged with anything. It has no underlying value except the network effect; in other words, it has to be used.

It's like a gamble, what if there's no one use the coin or no one support the projects, nothing will be burned and there's no movements that will take place.
It's hard to take chances not unless you will use spare funds and you are willing to take for long term investment. With the situation like now, it's hard for
any investors to take this and work with experimental ventures. Most investors are wiser and they are looking for higher potential projects.

I always had a bad feeling about the deflationary tokens. They were all a vivid example of ponzi scheme in the cryptocurrency space. The fact that non had a real use made it obvious that their demise is near. I wasn't surprised when they faded away like the morning dew.

This method is very popular in 2017, but for now it doesn't seem useful to people. Because people have started to be smart which projects actually have functions which only rely on deflation. If deflation is not accompanied by a good product it is useless and can be a scam at any time.

right. tangible products that many people will need to maintain the project in the cryptocurrency world. different from fictitious projects where the pump can occur at any time and the dump will catch up and it is difficult to return to the original price due to erosion of investor confidence. this is not much different from gambling

Yes deflation idea is a very good one, i never know that any MZG token used in the app will be burned, feels like i am just hearing for the first time, its same thing with CHL, once you use the token to invest on real estate in the app it burns off instantly

Real use case should come first before deflation but developers are just using this to take advantage of investors who wants to get rich quickly and investors too are not wise enough

This was a thing of past wherein bounty hunters used to dump the tokens and causing loss to investors but now the tables have turned and it's the investors or developers who are greedy as they don't distribute rewards to hunter and rather they dump the tokens.

When you would like to create a new coin, you have to make hype over it. And how? By creating good-looking buzzwords for your coin.
And do you think that BOMB wasn´t profitable for creator? I belive that he earned a lot of money, but the others paid for it.

Yes this is the reality of tokens. Nothing is backing the price. So rise it and dump it.

Aero token is the new kids on the block, after watching ethplode for few months its now growing due to the burned in max supply, if you are holding any deflation token once it become profitable just take your profit and leave, since they have no real use its better to avoid holding for long time

BOMB is still around  and doing well I think, but the hype surrounding it has faded greatly, it's not what it used to be back when deflation coins were da Bomb... literally!.

Just like anything in Crypto, anything is possible and we might be seeing a comeback in the future especially deflationary coins with a usecase.

I wonder if it is possible for this deflation token to last a long time? Can it attract investors or fans? because I think now the deflation token system for the long term will not be better than the token system in general. especially if you associate it with an offer

Bomb literally had no product or services. They were just creating hype.

Deflationary coins reduces its supply as transactions occur thereby adding more value due to its limited supply. Most of this deflationary coin have no usecase and will turn to shit coin in future,however there is one deflationary coin that proposes to introduce a usecase, BlockBurn.

BOMB didn´t have any use case, something like HEX, token that is hyped for massive staking profits, but nobody cares about the real use case.
So, at first you need use, then you can attract investors on any other things.  8)

There is nothing to keep this project alive. The method of making money from each other, this method continues to some point and when the time comes, it explodes in someone's hands. I am sure there will be new and greedy ones at the explosion point, because the veterans know how to trade with such projects. Maybe the price increase may seem attractive to someone, but never be fooled. Absolutely and definitely stay away!

You are right, such a scenario will usually only benefit one party. While others will have a greater risk. A kind of hype that will only produce brief hysteria and then disappear.

You are right deflationary or not an asset needs to achieve a level of adoption and that usually comes from a real world use case so make sure you check that it is listed on a reputable exchange, has good liquidity, and a strong community behind it before you decide whether or not to invest

I believe that this situation has something familiar not only with deflation tokens. Even solid altcoins from top 50 on CMC cannot deliver a working product after several years of development, so I believe you do not need to expect a working product from a new altcoin.