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Author Topic: How burn token affect token price  (Read 236 times)
linapel318 (OP)
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March 05, 2018, 07:24:52 AM
 #1

How will burn token affect the price of token? Huh Huh Huh

Will the price become higher after burning token due to the reduce of supply?
Kryten12
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March 05, 2018, 07:30:31 AM
 #2

Sometimes it has no affect at all on the token price it simply removes part of the circulating supply which will reduce the market cap and reduces the overall number of tokens. If you are in a coin that is paying for staking or dividends then your proportional share wil lhave increased and that payout will increase.


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March 05, 2018, 07:41:24 AM
 #3

How will burn token affect the price of token? Huh Huh Huh

Will the price become higher after burning token due to the reduce of supply?

in my opinion burn token very effect to the price of the coin because the coin is burned and not created again and automatically the price of coin can be very expensive because the supply is getting thinning.
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March 05, 2018, 07:45:19 AM
 #4

How will burn token affect the price of token? Huh Huh Huh

Will the price become higher after burning token due to the reduce of supply?
Yes, exactly. This is the law of supply and demand. If there are many people who want to buy bitcoin but there are only few coin that in sale then those people wiol competing each other to buy bitcoin by increase their buy order price rate.

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worldooftanks
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March 05, 2018, 07:48:20 AM
 #5

Not always does the burning of the token affect the price koordinalno that the price would go up,of course usually when the coin has its significance and there is a burning price will go up but as far as it then goes down.
irmasany
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March 05, 2018, 07:54:52 AM
 #6




when an ico project really does not sell out its tokens. the rest must be burned, although there is no guarantee that the tokens will have great value in the future. depending on dev and team to manage it. so, to burn the rest of the token, the unsold one is the most correct action.
Nivir
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March 05, 2018, 07:55:31 AM
 #7

Most of the time burning of supply makes the price grow as it means scarcity. The law of demand and supply. But everything depends on the market though so sometimes it may not have any effect at all. Long term, you should be happy with it though.
Babayan
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March 05, 2018, 07:56:10 AM
 #8

Less tokens - higher price, so if company burns their tokens, the price of others will raise. For example, the price of Bancor raised when the amount of tokens became less from 71k to 69k.

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kaloloy
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March 05, 2018, 07:57:54 AM
 #9

How will burn token affect the price of token? Huh Huh Huh
Will the price become higher after burning token due to the reduce of supply?

Recently Oyster Pearl PRL are burning 10M of tokens from the maximum PRL supply so from 108M down to 98M max supply.
The instance is, PRL will be more expensive due to the supply limit and as we noticed that coins that has a very limited supply like Million coin Altcoins are mostly price valued higher than $1 but billion coin supply are only price valued Lower than $1.
mariayaz
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March 05, 2018, 08:03:21 AM
 #10

Burning coin (unsold remaining coins during ICO) do effect on increasing the price, if any project burn coins that mean it will decrease the total supply and  increase the price of coin. minimum the total supply, maximum the price of coin.

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March 05, 2018, 08:03:42 AM
 #11

How will burn token affect the price of token? Huh Huh Huh
Will the price become higher after burning token due to the reduce of supply?

Recently Oyster Pearl PRL are burning 10M of tokens from the maximum PRL supply so from 108M down to 98M max supply.
The instance is, PRL will be more expensive due to the supply limit and as we noticed that coins that has a very limited supply like Million coin Altcoins are mostly price valued higher than $1 but billion coin supply are only price valued Lower than $1.


This is mostly effective when the devs are holding too much supply which is a bit worrisome because they can dump it anytime in the market. That is why sometimes I really avoid coins with devs holding lots of the remaining supply.

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March 05, 2018, 08:04:48 AM
 #12

it should increase the price as it decreases the supply
rayk
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March 05, 2018, 08:09:58 AM
 #13

It depends, if it is from circulating supply tokens born it affects price but sometimes tokens from uncirculated supply are born.
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March 05, 2018, 08:14:19 AM
 #14

The main reason why token burning after ICO main sale takes place is to preserve the value of a particular token. If unsold (unpurchased) tokens were released to the market, or otherwise allocated without charge, that would inherently drive down the value of each token. Not burning tokens is therefore directly detrimental to any investors in that ICO. And so, not burning unsold tokens should be, and is, a deal breaker for all ICO investors with a grasp of basic math. But it's just one of the factors though that affects the token price.

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March 05, 2018, 08:17:10 AM
 #15

How will burn token affect the price of token? Huh Huh Huh

Will the price become higher after burning token due to the reduce of supply?

in my opinion burn token very effect to the price of the coin because the coin is burned and not created again and automatically the price of coin can be very expensive because the supply is getting thinning.

And then in the future, when the supply is low because some tokens were burned and the demand will be very high then that's the effect of the token burning happened in the past.
There are a lot of altcoins today that has over 500M to Billion coin supply that didn't priced so well and only Ripple does have a good future.





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Bastime
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March 05, 2018, 08:20:52 AM
 #16

The main reason why token burning after ICO main sale takes place is to preserve the value of a particular token. If unsold (unpurchased) tokens were released to the market, or otherwise allocated without charge, that would inherently drive down the value of each token. Not burning tokens is therefore directly detrimental to any investors in that ICO. And so, not burning unsold tokens should be, and is, a deal breaker for all ICO investors with a grasp of basic math. But it's just one of the factors though that affects the token price.

Recently Oyster Pearl PRL burned 10M tokens last week so the max coin supply has been lowered and that's the case and the reason why investors are holding their PRL tokens because the supply is less and limited but the demand will spike soon when the main net is released to the public.
Token burning will ensure it's investors that unsold tokens will have no use in the market.





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March 05, 2018, 08:22:44 AM
 #17

In my opinion if burn some token will affect the price because the supply will reduce, but this is also not guarantee because the main thing  the price can go up is the fundamental of the coin and what benefits they will give to the token holder. I look in to Genesis Vision that only has total supply about 4 million token and the fundamental of the project also good and finally the price was going up to 35 times just a few month.
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March 05, 2018, 08:30:34 AM
 #18

Token burn reduces the available supply, so according to basic law of supply and demand, if the token has decent utility and the demand remains constant after token burn, then the price will shoot up
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March 05, 2018, 08:34:25 AM
 #19

How will burn token affect the price of token? Huh Huh Huh

Will the price become higher after burning token due to the reduce of supply?

Yes you are right that is the right thing to happen but we doesn't really don't know especially if those whales out there manipulated the price of the coins and stop it to rise the price.
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March 05, 2018, 08:51:39 AM
 #20

Token burn would have the effect of reducing the coin supply and market capitalization. It would mean that your percentage share of the coin if you are holding some will increase. Token burn event sometimes move the price because others are making it a big deal and we know that every time there is a big event of a coin, it will caught attention and makes the price drive up temporarily. The unsold tokens if not burned has a tendency to drive the price down if released in the market and since the ones holding it are the developers then the ICO would look bad which is a disappointment for investors.

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