Bitcoin Forum

Is buying and selling taxes on a new project a scamming habit? Its annoying seeing new projects this days using buy tax and sell tax, I will like to know where the taxes is going, I bet it has nothing to do with regulations, is someone eating this up?

I need someone to teach me how to know where this money is going, or I should mind my own business?

I'm not following the current Altcoins trend, I try to search about tax in Altcoins, but I didn't find something new like what you described. It's better if you mention the project and elaborate the tax you meant.

What I know in Altcoins pre sale, you're actually buy at discounted rate instead of paying more.

I also don't know much about task in altcoins, we make use of a presale order for the benefit of those that will be interested in making the project move forward to their target plan and also afford paying gas fee in like manners without going through any forms of paying tax, but maybe the exchanges and other cryptocurrency settings that were physically represented may take their own effort in paying tax because they can't escape the government regulations on that.

Tax is something I have tagged with the government.Commission would have been better.I smell a scam. Unlucky you facing things have never faced.

This altcoin tax system is very simple; it's for those legit altcoins that are actually doing it for a good reason and not to scam people with their token.
 
There are many reasons and purposes for those tasks, which are to reduce the circulating supply, reward holders, and donate to charity. At least that's what most of them do.

If you watch most of those tokens, which charge both buy and sell taxes, those who hold them in their private wallets are always rewarded, either every hour or every 24 hours, and some of the percentage gotten from the buy and sell task is being sent to a burn address. This is what I have understood about all the rebase tokens that charge tax, of which I was once the holder.

They can do it to reduce selling pressure from their users. It was common applied in GameFi projects because with those projects, users, gamers simply have to buy their tokens, buy their NFTs, and play games almost forever.

You see they invest one time, can play to earn many times, forever. It will create very big selling pressure when users already hits their break-even point, they will sell tokens they earned from the games without hesitation because they are already in profit.

However, sale tax is like a scam already. Because firstly projects with their marketing, make their users think buying NFT, playing games will bring a lot of profit. At the end, most of promised profit will be charged through sale tax and the project team take it. What they do with those sale tax income, users can not control.

Calling tax as the name of whatever it is that they charge  is suspicious to me, they could give it another name or just call it changes, because I believe that taxes goes to the governments. So if the developers of these projects call whatever they charge as tax, then they're obligated to remit it to the government, if not, then it's a scam, because you can't tax investors and withhold the taxes that they pay, it is criminality. It doesn't matter how legit an altcoin is, collecting charges from investors shouldn't be called taxes, let them find another name for it.