Bitcoin Forum

When u hear/read a coin have a burning plan in their roadmap - is it a always buy in before and sell when it happen? ( Excluded shitcoins).

Buying before is the burn much better. Even way before the news of the burn starts circulating around the community and the price pumps. Selling when the burn happens entirely depends on your target and how frequent the burns are going to happen. If the burns are going to take place periodically, for a solid coin, the price could grow in the long run due to the reduction in circulating supply, so you could even wait for over 5 years if you want (Of course not shitcoins that die within a couple of years)

In my opinion, it is impossible to generalize like that. There are many factors affecting the price of a coin / token. Just because a coin has a burning event scheduled doesn't mean the price will rise following it.

Just look at the price of Binance every time they burn their supply, the price usually didn’t pump before and during the burning phase, it will just pump right after that where people realize that the supply is getting limited and still the demand is rising. So its a good idea to buy before the burning phase and hold until the price pump.

Well the burning processes are those coins/tokens that are permanently lost or can't access assets that should be removed by the circulating supply and that is right, buying before there is a burning phase will potentially have profit but sometimes the coin/token owner did not announce usually events like this. There will be an effect on the price but for sure this is only manipulated, holding will not have an assurance to gain profit because tokens/altcoins did not deserve to hold in a long run.

Not all cryptocurrency with burning plans is always bullish.
@ololajulo got a point, check always the tokenomics especially if they have these burning plans but look how huge their supply is, it's still no use if they have burned but don't matter at all because their supply is high then the percentage of they planning to burn is extremely low.
Lots of already cryptocurrencies that already got rekt even they have burning plans.

Some shitcoins also had this strategies but it failed because people nowadays have been educated with tricky tricks from a cryptocurrency developers. Most coins who got this plans was part of their hype, and I don't think it's really doing great all the time, other whales make it as an opportunity to buy an initial holding prior bullish price will be reached. For those established coins like eth and btc, I believed everything is coming to an assurance compared with shitcoins.

Depends on you but always mind of about the risk because not every burning events would typically means guaranteed pump of a certain coin even its a top ranking one
but still wont give out some assurance.

Therefore, it would really be varying on your own risk management if you could really able to afford it out on investing into that particular project.

Its your money then its your decision to  make not on other people.

It actually depends on the burning protocols.

Regardless, you should not be based on that factor but instead on the overall structure of the coins before you choose a coin to invest in.

Can you give example and let us look at that project.

Burning means the supply is going to get cut off meaning that the prices are going to go down when the time comes that the coins get burned, so yes, it should always be buy before it happens and sell when it happens or when the prices significantly increased.

 for me yes you should buy early coz when project is burning token there's always a good improvement after . But maybe not all, i mean it's still depends how popular the project is or let say how many holder they have, coz even a project burn if it didn't get attention form buyers it's useless IMO.. Perhaps they can cope if they will spread the news in different websites or even a social media as its the common way of everyone just to gained attention. Actually its up to you to determine which project is good especially when burning.. Just don't base on their roadmap and make sure it has a potential to bump after burning.

right, by analyzing a project, we can invest, so that if there is a coin burning, it means it will increase the price, and we will get a profit. but not all burning will increase the price, because it is related to how much the project attracts investors to invest in it

There is not enough data to back this up. Pull up a chart of BNBBTC and see for yourself. Basically the coin always pumped, except in mid 2019 to early 2021. There were coin burns in those dates however price against BTC didn't increase. So its not a reliable way to make money.

The issue with the BNB is that Binance got popular and got tons of volume so thats one of the reasons why it kept increasing in value. It increased due to its utilty and not necessarily the coin burn. Also the coin burn is such a low percentage of total supply. So you shouldn't expect much out of it.

My advice don't try using this method. You will most likely buy some coin and end up bag holding it even if it does burns once in a while.

When this concept was first applied to BNB, it used to pump the price prior to the burn event but later the market stop reacting to the event because it does not come from the liquid BNB tokens, I believe people will understand this soon with Ethereum, we have millions of Ether tokens locked up in ETh 2.0 and this is not moving soon but people tend to hype the few Ethers that has been burnt already as what will send the price of Ethereum to $10k, it is more about marketing narrative and who can sell it better

in the case of BNB, be on board before there will be burning because by the time announce there will be burning that will happen, the demand will increase and makes the price go high. it does happen every time they announce.

ETH price today is really high but it could go more than 2x probably if they are going to be burning soon. speculations could be too much but we find it very exaggerating to see ETH more than $1000 back in the days.

In essence you are saying project like binance bnb has no good tokenomics that's why they include periodic burning on their coin! I think this is just a miss conception people have, burning those not necessarily mean to increase price instantly but some people just assume that ones a token burn is announced it automatically translate to price increase,  eth has an infinity supply with no token burn yet the price is high,  I agree token burn should not even be something to consider if they team already done a good calculation of the accurate amount of token to generate, perhaps this another way of manipulation.

Coin burning is so vital within the cryptocurrency space that a few ventures have indeed based their agreement instruments on the deflationary technique; others have indeed gone so distant as to form a self-destructing computerized resource that burns a portion of the overall supply with each exchange. Which will give you much benefit as well.

A deflationary plan is a good initiative for any project to undertake but it doesn't always work. Less supply don't always mean "moon mission". First, you've to consider some facts before delving in. Some of these facts includes:

• Making sure they have an active team
• Active community support for project and it's ecosystem
• Low inflation or token emission rate
• Token supply (including initial and total supply)

For good coins, definitely, that's such good news. Since there's recent news about burning and that's with Ethereum, we can see that good news gave it a surge.
Every time whenever there's a good coin that has announced some burning that's going to happen and another example is with Binance. We're seeing the price surges for that coin.

Not a solid thing for you to presume that it would really be making pumps after such burning events because it will always vary on the project itself if it does have the demand then for sure pumps will really be there
but if we are talking in to a project which doesnt have any demand or popularity at all then burning would be insignificant because it wouldnt really make out any changes at all.
Neither it would be giving off some effects or wouldnt have anything at all.It will always vary or do talk about on the popularity or demand of a certain project for it to have
some relevant effects.

personally i am believe burnign token was not only as single strategy to make token price soar, there are another ways to make. How could  a token have expensive value without building something that very usefull in ecosystem. Token supply , burning token only used to attract but its not effective, investors need demand that created from utility. Just like binance, demand always occur because it have strong utility so their plan burning coin will always work.

The Binance Coin roadmap originally had a clause that provided for 50% burning of coins issued in the ICO. And, as we can see, this did not frighten investors to invest in this ICO in 2017, and as a result, this decision led to the success of the Binance exchange and its BNB coins

Several coins have their schedule in burning their coins or tokens. And burning will commonly influence the price to go up. For, it will decrease the supply of the token itself. And lower supply may create higher value than before.
And yes of course, before the burning time happens, buying those coins may be a good idea, for, we can expect for higher price after burning.

Burning of tokens are just one of those marketing terms project use to decieve speculators into investing in their projects. Burning doesn't guarantee a project will increase in price. First there has to be demand of the project because of the utility it providers. Another factor you have to consider is the supply of the coin in circulation. Tokens having trillions of supply as it's common with meme tokens this days (which I don't strongly recommend using them as investment unless you're just having fun), this tokens with such huge supply will hardly increase in price in a short period due to burns especially if there's no utility to create demand for the token.

Binance coins has so many utility tired to the exchange that it'll always be a hot demand project unless the exchange was to lose its relevant in the exchange industry. BNB is use for staking, crowdfunding, farming and trading. When the tokens get burns all this feature are still active therefore it create more demand and since there's a decrease in the current circulating supply, it has a major impact on the price of the token.

That can't be said about majority of the project out in the market using the burn mechanism just to attractive speculators to their project. Don't based your investment criteria on the fact of a project offering tokens burning as their target. Why create such huge supply in the first place, if you were just going to burn them afterwards.

Coins with a limited supply usually go up in price faster than an unlimited supply. Especially with a limited supply, after that the coins burn and make
the supply decrease. It is certain that if this happens the price will soar up, therefore many investors expect the burning of coins, so that the price
can go up. The most important thing is that we must be careful in making decisions, we must know when to enter and when to leave market.
So we can take profit when there is a burning of coins, because that moment is rare, so we should be able to take advantage of it.

Burning coins doesn't necessarily guarantee that the price will go up. Sometimes it takes a while for the market to react. Whether a token has plans to burn some of their supply should not be the determining factor when investing in a new coin.

By the times of 2014/2015, burning bitcoin was happening more frequently per this community members' posts (by sending to a specific BTC addy, its privatekey was not at all generated). I mean burning is a known process for the attempt of increasing the value of circulating supply.

If you notice, binance is actively into burning BNB regularly (they have monthly schedule for burning process if I remember correctly); which might be a trigger for many devs to have burning as a part of their roadmap.

Simply, do not get deceived by burning plans. When a coin/token is not backed by "all the requirements of an ideal coin" then burning plans will not bring any changes to it. It may get dumped regularly regardless of whatever amount of circulating supply is burnt.

buy before burning. because if there is an issue of coin burning, there will usually be hype and there will be provocateurs who play the price scale high. I think the best way is to buy before there is a burning issue and find out more about the coin

it becomes a common way for every projects to gained more attention from buyer in the market that's why they're burning token when they noticed that there's no improvement of the projects for long time. It's a good decision to be honest in my personal opinion. And yes so you should buy while while they're process the plan than buying during the buring of token because you don't know how much profit you will obtain from it afterwards or how long the progress will last..

Most of the coins/tokens that have a burning plan are usually shitcoins.
I have never seen a legit coin to raise it's value via burning.Maybe except ETH.
Coin burning seems like a market manipulation attempt.Maybe that's why most of the traders don't trust coins that are about to get thru burning,so they don't try to buy lots of them and increase their demand.
It seems like something is wrong with a coin,that is about to get burned.The supply of such coin was overinflated,which sends a bad signal to all traders.They might be thinking that there might be something wrong with that particular cryptocurrency/token project.
I'm not an expert in altcoins/tokens,this is just my opinion.

Depends on which coin.  If the coin is a top-rated coin according to Coinmarketcap, then it's good to buy before the burn. For the short-term trade, it's a good strategy to make some easy buck. When the CEO of Binance exchange CZ announces any burning date, BNB coin pump hard. It's the same for FTX also. A few months ago NWC team also burned a lot of NWC coins and when the announcement came NWC pumped hard. I also earned a few bucks for the burning news. But dont forget to use stop-loss because some bag holders also dump their bags in this kind of news/announcement. 

Yes,  it would really vary on the coins popularity and if this is just some another shitcoin  in the market  that make some burning then it wouldnt really be that significant but if we  do talk about main coins or top
ranking ones then it would really be signifying  some  good news that it could possibly pump.

Lessening the overall supply with high or able to retain or sustain the demand will really result into high price but this  isnt always a guaranteed scenario because burning effects could neither be seen

directly or in long term aspect but most of the time this would really be on long term basis if the demand will continue into a particular coin.

If you hear about a burning system of a coin I think is better you buy the coin before the burning talks place because if a coin is been burn it reduce the total supply of the coin which everyone will definitely want to buy which will definitely pump the price of the coin so is definitely always advisable to buy coin before the burn which after burning you will definitely be in good profits.

We should be careful on this kind of situation which tried to feed with our minds, because news regarding burning was not really beneficial. Because if that token or coin reduced supply through burning plans has no good and strong support from holders and traders, we can't expect any positive outcome even though that burns will be successful.
All we need is the reality, in order to make our choosen asset increase at profitable value. One example of that is the reduced supply of ethereum, and I'm also hoping for other platforms to have this kind of strategy.

You can buy before that happen and wait for the price to go up before you sell though there’s no guarantee that the price will start to pump easily but once you gain profit, you can sell it any time. Burning token is one of the strategy to increase the value of that project, so if you see it on their roadmap, that could be a good one.

That's exactly what the project what the community to think which is why they implement this burning mechanism to bring in more speculators which has the sole purpose of wanting to profit from the burning event. Burning of a project tokens doesn't automatically guarantee an increase in price and some projects don't have the momentum to sustain that hypes that comes with burning of tokens.

Which is why the hypes only stays for just days before it dies out. If the project isn't attractive to speculators, no matter the amount of burning the project decide to initiate, it won't attract much investors like the like of other top tokens that has the mechanism already implemented that's because this tokens doesn't have the utility to convince investors to bet on their project instead of the thousands out there.

Burning plans usually came after the live sell or the event where mostly investors and potential buyers are into putting their money into a specific project coin. Mostly this happens when the totality of circulating supply is too high that makes the price low so to be able to somehow make the price high, the supply is being cut through the means of burning to be able to raise the demand with a limited supply that makes the value big. It is mostly stated on the road map of the project as the plan of the team developers.

It's usually better to buy the coin before the burning since burning is done in the first place to reduce the supply so that the price of the token/coin itself would rise up, that or the supply has blown over too much that they needed to reduce it so that they can regain control of the economy of the token. I say usually since it doesn't always apply, it's still an optional kind of thing and you would still need to judge yourself whether it would actually rise up or not. Checking out their white paper and judging whether the project would actually work is still the best decision.

This is not the case of shitcoins.

I just wonder why they need to have big supply and then burning it when they one first hand itself, can create a coin/token with less supply?

Burning is for deceiving and definitely not a progressive related action for a development of a coin/token.

Reducing the supply alone will not guarantee growth of a coin. Swapping/burning are few latest traps, devs have these days to lure naive investors. Never fall for these.

It will be nice to buy before the burning and you can see many of the coins that didn't pump after the burning and after the people know that it is going to increase and having much ability to move forward, then only they buy it. So , it would be better to buy before burning.

You obviously also think that the fork London, which occurred in Ethereum on August 4, is also a deception? One of the innovations of this fork is the burning of part of the commissions in the Ethereum network. Despite the fact that initially the burning of coins was not provided for in the Ethereum technical document, the team decided to burn some of the coins, which should definitely affect the price increase.

If we would relate it to the recent burning in Ethereum after the hard fork, I don't think it is something that is legitimate and will make huge progress for the coin in the future. It can be seen easily, although we cannot be certain about it since it just happened days ago. As the supply goes down and the demand rises, the value will surely rise that's why there has been a significant change with Ethereum as the hard fork comes to an end. For other coins, maybe burning is just a false hope but for ETH, I don't think so.

Of course, buying any coin must be before burning and then selling it after burning. Burning the coin periodically leads to an improvement in the price of the coin because it leads to a decrease in the number of the coin and this will lead to a shortage of supply in the market and thus raise the price of the coin, but you must Note that some coins or tokens have a large total supply, so burning sometimes does not have a significant effect until after burning large quantities, so you should first look at the total supply of the coin before buying it.

The problem is not everyone knows that the coin will be burned except two days before the burning is carried out, the coin party has given the news beforehand and it is true that they will do it, because there are also those who only circulate news about it, but whether it is done or not, everyone does too I don't know because there are also those who say they have been burned but the price is still the same as before it was burned.

burning that caused nothing actually only fake strategy to drive price up. alot investors didn't understand about it, the real burning in token or coins used in onchain transaction. usually in every transaction made , token will be burned. Dev team usually make it automaticly or calculate in certain periode and take it from total supply. bsc , eth , birb and many other do this mechanism. the most important for new project that offer burning token should focus on product developtment, without it burning only a mirage

I was under the impression that only shitcoins did something like burning their supply, after all it is a measure that it is done to artificially raise the price by trying to manipulate one side of the equation of the supply and the demand.

They do not seem to realize that they do not need to do anything remotely like this if they just created some kind of service that people actually wanted to use and they needed their coin for it, so to me this is nothing more but an attempt at manipulating the perception of people and as such you should stay away from such coins.

The essence of burning a coin or token is to reduce the supply which in turn will make it more profitable but it highly depends on the coin or token in question. Before now, most projects always burn their token and it kind of became a thing  which is used to drive hype, and although it worked for the meantime but later on it doesn't move investors again because even shitcoins are also burning theirs just to pump price. So nowadays,  burning plan doesn't drive price again, it's now seen as a normal project plan, unless it is a coin whose team already have good products and services in place, thus with burning which reduces the supply, it will in turn lead to more value of the project's coin or token.
A good example is the ETH London hard fork, ETH is already a valuable coin, and with the upgrade leading to burning of ETH coin, the price will continue being attractive. Another example is BNB coin, the platform always have a burning plan which was started a long time ago, and it has in a way contributed to the good price of BNB we see today. But you see for most shitcoins, the team only announce burning plan to drive hype, pump the price and possibly dump it on investors.

I do agree that there is a good chance we may end up with a good price because of the burns, but at the end of the day those that were burned were at already under the ownership of binance so that means it wasn't on the market anyway and it will not increase the price right now. What people do not understand is that, what these burns do is that it drops the supply level, so when there is a huge supply then the price goes down, you are not going to suddenly see a 2x just because they are burned, you are going to see the impact later on when people are buying more than they are selling on average.

This is why I honestly think that burns are good. However I honestly do not know what happens in the future, are they going to burn everything? I mean they have to stop at some point right? Otherwise they would burn everything which I am sure they won't do that.

Buring some of their tokens helps to increase the value of their project and having a chance to make a buy before it happens was a good opportunity to take but of course, we can't be sure if they were true into their roadmap, that is the problem. In fact, many cases happen that they will never follow their roadmap but rather have to make another because of some reason( which is literally not acceptable).
That is why it was best not to consider this as the basis for buying unless they have announced on their social media the date of the burning process just like BNB.

I choose to buy before the coin is burned. because the hype usually occurs when the altcoin has been burned.
If you buy during the hype, of course you have a big risk of losing.