Why is burning coins good

[SlimShadyMmp]

I will say most of them are just over-hyped as others pointed out especially on shit or meme coins dont forget most of those coins are like one trillion so burning is some how untraceable I will avoid that but sometimes on good coin with better fundamental It can make coin deflationary and with more usage that means better liquidity and token price

[Newlifebtc]

originally this practice was used to decrease the quantity of existing altcoins and therefore maintain or raise its price, value but currently i do not know how useful this method is given the continuous unpredictable fluctuations of all markets

The fact is that these can not course fluctuations of market, any thing about altcoins is believable when the market to turn real but when market falls the reason will become difference, make we believe that token burning is not some thing that brings the market up and down on like coins that is important

[btcltcdigger]

Recently, many projects have announced the burning of coins, but not everyone understands what this means.

This is a process by which cryptocurrency miners or developers get rid of a certain amount of tokens by sending them to addresses that are not accessible to anyone. The burning of coins is being implemented not because of the low viability of the project, but rather because of the desire of the creators of cryptocurrencies for great prospects.

Thus, the developers are trying to reduce the total number of available coins, while the created shortage affects the growth of their value.

The burning of coins can talk about the upcoming expansion of the project and a possible increase in its value. For example, after the recent announcement of a collaboration between Polygon and Newscrypto, the latter announced that they decided to burn $ 10M worth of NWC tokens this year. Consequently, in the near future, we can see a significant growth of NWC price on this news. What do you think about burning coins? Does this really affect the market value of the coins?

Well the original idea of a burn was to reduce supply and increase value, this has been abused.
You'll see projects launching with supply of 1000 000 000 000 000 with a price per token of $0.00001 which will attract many gamblers, and then once ido is over, you burn half of the supply and your value increases

[Abiky]

Token burning mechanism doesn't necessarily prove that the devs are good or legitimate (non-scammy). The major benefit is that when there's a decrease in the token supply, there's a perception that being deflationary is good since it means > less supply > less selling pressure > potential price growth but this isn't always the case except the team is burning a very significant amount similar to how Binance conduct theirs. It also increases the confidence of investors, token holders and community.

Developers only burn coins with the hopes of attracting investors into their projects. But scarcity is not the only thing which makes a cryptocurrency successful. Mainstream adoption is the key for any crypto asset to thrive in the long term. Without this, we cannot expect crypto prices to go all the way to the moon (even with added scarcity). I've seen many coins and tokens with a burning mechanism, only to fail within a short amount of time. If developers focused on making crypto more useful (rather than speculative), we'd really be going somewhere. They can burn all the coins they want, but at the end of the day, usability matters. There are only a few coins like this on the market, so there's that. Just my thoughts

[Muslimin mj]

Recently, many projects have announced the burning of coins, but not everyone understands what this means.

This is a process by which cryptocurrency miners or developers get rid of a certain amount of tokens by sending them to addresses that are not accessible to anyone. The burning of coins is being implemented not because of the low viability of the project, but rather because of the desire of the creators of cryptocurrencies for great prospects.

Thus, the developers are trying to reduce the total number of available coins, while the created shortage affects the growth of their value.

The burning of coins can talk about the upcoming expansion of the project and a possible increase in its value. For example, after the recent announcement of a collaboration between Polygon and Newscrypto, the latter announced that they decided to burn $ 10M worth of NWC tokens this year. Consequently, in the near future, we can see a significant growth of NWC price on this news. What do you think about burning coins? Does this really affect the market value of the coins?

I think the burning of coins is very influential on the value of altcoins. because with a reduced total supply it will increase the value and price of altcoins. and there have been a lot of altcoins that have burned coins to pump up prices in the market. because the amount of supply greatly affects the interest of traders or investors.

[Nazmul012]

This is the theory as well as the way of increasing economical growth of a altcoin. If a project come with fix 5B coins total circulation & after tokensale, they can't use burn theory for hype! But if the same project come with 10B & after tokensale, they announce to burn 30/50% of it, then undoubtedly people who already hold that token, will obviously buy more by manage fund anyhow, even others public will also join and thus project can create hype successfully and increase the marketcap of a token. Even bnb already done that and maybe thats why coin burning seems good and getting popular nowadays

[tengui]

The burning of coins will be good news for the holder because if the amount of supply decreases it is likely that the price will increase drastically. The price is greatly influenced by the amount of supply and demand, coin burners will reduce the supply and increase demand because burning coins is good news and the news will attract many investors to buy. burning is an effort made by the development team to increase the price of the product (altcoin) of the project, so it can be said that coin burning is very good for the future of the project.

[fadil46]

I think the burning of coins is very influential on the value of altcoins. because with a reduced total supply it will increase the value and price of altcoins. and there have been a lot of altcoins that have burned coins to pump up prices in the market. because the amount of supply greatly affects the interest of traders or investors.

That is if the coin that has been burned still has a large number of devotees, but if the coin that is burned still does not have a lot of interest then the change in price will also not be very large and it will not even be that far from the previous one.

[lenovop-70]

I am unfamiliar with what burning coin is, but in my experience as a trader, when there is a burning event, the price of the coin moves significantly, in general I understand what burning is, reduction the supply of coins in the market, or in their cold wallet, but generally speaking, I understand the details a bit by reading the OP's article above, and I am agree, burning coins is good for holders and traders.

[Mehedi72]

for now it seems that burning coins is one of the routines of a coin, done by almost all developers. a trick to get people into the trap.

Mostly Common routines of a coin, possibly to highlight their projects much easily among people. but i saw those hype doesn’t work for every project btw! For example: when a coin announced for burning, price should be increased. But after buy that coin, you’ll see that coin start dumping instead of rising up.

and from here we have to be able to sort out a project even though they do the same thing but their intentions are different

we'll see same things with others projects too and Should be careful, otherwise possible that anyone could be Victim of such tricky trap and could lost their fund as i explained above

[livingfree]

Mostly Common routines of a coin, possibly to highlight their projects much easily among people. but i saw those hype doesn’t work for every project btw! For example: when a coin announced for burning, price should be increased. But after buy that coin, you’ll see that coin start dumping instead of rising up.

Yeah right.

It doesn't work for every project.

They may burn as much as they can just to have a news for their token but nothing beats use case and natural growth of a project. It's not working for all.

A few works perfectly after announcing burning but many doesn't.

[diamond_shine1]

burning coins is one way to increase the price of coins, they think by reducing the supply of coins the price will go up, and they report the burning in the media in the hope that more people will see and invest in the coins,so I think burning is a tactic to increase the popularity of coins.
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