Is burning of unsold tokens is good for ICO????

[Cwyaalim]

The less tokens exist, the higher the cost of the token. Consuming tokens can just influence the cost. I can't help thinking this is a decent alternative on the grounds that such activities all will be left to the preferred standpoint both the advancement group and the purchasers of the tokens. What's more, I don't perceive some other variations of the improvement of occasions on the off chance that I don't pulverize the rest of the tokens, at that point what to do with them and to whom?

[caisa88]

The price of the token would be cheaper if the team decided to just keep the tokens for them or if they would just distribute it as airdrop. So it's a good thing for the investors that the unsold tokens are burned at the end of the ICO.

[Likemuk]

The less tokens exist, the higher the cost of the token. Consuming tokens can just influence the cost. I can't help suspecting this is a decent choice on the grounds that such activities all will be left to the favorable position both the advancement group and the purchasers of the tokens. Also, I don't perceive some other variations of the advancement of occasions on the off chance that I don't pulverize the rest of the tokens, at that point what to do with them and to whom?

[joey alexander]

There are various reasons for the burning the tokens, some of them are

Unsold ICO Coins : after ICO the unsold tokens go the company and they may sell off and make a profit out of it. In order to
avoid this and have a fair chance for both the company and token holders, the companies burn the unsold tokens.

Paying For Transaction Fees : For every transaction, a minor amount of token is burned.
By doing this, you pay for the transaction network instead of paying to a miner or any other third party.

Buyback : this is done through dividend payments.

[fastrabbit]

Most of the time it limit the supply of coin to increase demand .Coin burn in cryptocurrencies means sending some of the coins of their cryptocurrency or some other currency to a public address from which those particular coins can never be spent because the private keys of such an address is unobtainable.

[fudster]

I think so. The demand of the coin will be stronger when eventually the coins gets lesser and lesser. It will result to have higher value when those traders are going to bid to have more coins on their wallets. There are several teams that promise to burn tokens, one that I have invested a year ago was ICN. The team however fail to make the token useful which makes holders dump.

[Darker45]

Burning of tokens does not speak of any kind of actual development to the project itself nor to its product. However, it is still a very positive news because it means the team is not anymore holding a huge amount of tokens that they could dump anytime. Moreover, it also means the total supply of tokens is reduced, causing the remaining tokens to have the probability of acquiring more value.

[ereborltc]

Hello friends, lot of ICOs failes to achieve 100% sale in their crowdsale. Most of the ICOs mentions in their terms and conditions that unsold tokens will be burned. My question is very simple " Is burning of token really helps ptoject?". I am of the view that burning of the token doesn't help the project and I feel instead of burning unsold token it's better to use them for community and project development.

I think that the ICO project burns unsold tokens, which helps to maintain the value of the token, rather than flooding it, causing the price of the currency to plummet.
In the RIPAEXA project in August, the team burned 5 million XPX tokens to ensure that the participating investors made a profit. Now the project is still in the crowdfunding stage.
https://tec.ripaex.io/

[Thyaga]

I think that the ICO project burns unsold tokens, which helps to maintain the value of the token, rather than flooding it, causing the price of the currency to plummet.
In the RIPAEXA project in August, the team burned 5 million XPX tokens to ensure that the participating investors made a profit. Now the project is still in the crowdfunding stage.
https://tec.ripaex.io/

If a project development team can see the opportunity, an unsold token they can make a bonus each week for the hodlers.

[babsjoe]

ICO have the right to adjust the supply of their token in a way that benefit the project and the investors! Burning unsold token automatically reduce the supply which makes the existng token valuable!

[cbIpok]

It definitely contributes to the price positively. As the total supply decreases, the value of coins you have will increase. But instead of burning unsold tokens, some ico's choose to distribute them to the investors.

[DikkieD]

I see everybody replying that it is about supply & demand and that a lower supply has a positive effect on this.

However. What is a lower supply? I mean, if a 200m project sells only 100m tokens in token sale rounds and of those tokens 60m are actually sold, then 40m will get burned, which leaves 160m total. However, part of the untouched 100m often is sold to private investors, not included in main token sale. Rest of this 100m goes into development and team (among others).

So yes, supply is lower, but more tokens are in the hands of a few....and the ratio is becoming less and less favorable to invest in it anyway....and those people holding the 60m will want to sell.

I wonder if like ts said it is perhaps better to only burn a part, just for the sake of it (keeping investors happy). But keep a part for promotional activities. Maybe use if for high volume (real volume) exchanges, or to attract more investors?

There currently are quite a few projects that became a dumping ground simply because most of the tokens were in the hands of private investors.....how's that for supply and demand

[paulscathedral]

Serious investment funds will never invest in a project that will keep all unsold tokens. They can be up to 80%. It puts at high risk the price of a token and opens new opportunities for the manipulation of the price. That's why to burn unsold tokens are the best choice.

[natsu01]

I think it can be good for the investors, the number of their tokens purchased are still the same but the price will vary, the supply of those tokens become lesser because of the burning of the unsold tokens. It is also good because there will not other people or organizations buy those unsold tokens, for the reason that the token sale is already finished.

[Thesaintplague]

It definitely contributes to the price positively. As the total supply decreases, the value of coins you have will increase. But instead of burning unsold tokens, some ico's choose to distribute them to the investors.

Sometimes they are distributing unsold tokens to whitelisted investors, and sometimes airdrop it for the community. I am not sure that this is the right idea because it greatly affects the final price of the token on the exchange.

[bit..what?]

Burn unsold token is good for a ico and for the investores.
The smaller the total amount of tokens, the higher the price can rise.
But still, there is no guarantee that the price really rises.

[edsnowangel]

Burn unsold token is good for a ico and for the investores.
The smaller the total amount of tokens, the higher the price can rise.
But still, there is no guarantee that the price really rises.

it is good for the token community and investors right because imagine the supply and demand principle it is simply like that

the lesser the supply and higher the demand the higher the price
the higher the supply and lower the demand the lower the price.

[Cocoincos]

if team honestly will burn unsold tokens - it good, thats mean that project is serious, now it  rare, too much scam last time

[vandeam]

Usually if project can not take a hardcap all not traded tokens are burned because they do not belong to anyone.

[Malam90]

Burning unsold tokens after ICOs is good for price inflation of the tokens rather than holding unsold tokens by the team. It reduces the circulating supply and total supply also. It is the strategy of the developers to evaluate their tokens to the investors and markets as well.