Lower circulating supply of tokens, It is good or bad?

[Pain Packer]

With many ICO's not selling so much of their tokens or not reaching the hard cap, many of these token's price always plummeted after entering the exchange. With the excess tokens that are not sold during the ICO are being burned, it is really possible that a fewer circulating supply of tokens will make it rarer thus it is more valuable? More valuable meaning pricier thus each holder of token will get more from what they bought? Or it is actually the opposite? What is your opinion about?

Please don't hate me for my thinking. If you know that I'm wrong, please correct me.

[SparklesCoin]

You are both right and wrong at the same time. Yes, if the tokens become rare it might create some spark and will be able to bring the market a little further up. But if these are being burned to manipulate it, then in the long run, it might be a trouble.

[Dodongbtc111]

With many ICO's not selling so much of their tokens or not reaching the hard cap, many of these token's price always plummeted after entering the exchange. With the excess tokens that are not sold during the ICO are being burned, it is really possible that a fewer circulating supply of tokens will make it rarer thus it is more valuable? More valuable meaning pricier thus each holder of token will get more from what they bought? Or it is actually the opposite? What is your opinion about?

Please don't hate me for my thinking. If you know that I'm wrong, please correct me.

Yes, most probably you could gain a better price from it if the project team would decide to burn out the token that is not sold. From my knowledge locking out of time  from the team side is also a good reason for the token to have more value.

[Awesomus Maximus]

With the excess tokens that are not sold during the ICO are being burned, it is really possible that a fewer circulating supply of tokens will make it rarer thus it is more valuable?

Low circulating supply could make the price go up temporarily because the demand may be greater. But in the long run what matters most is the total supply. How are the additional tokens released? Are they mined, or staked? At what rate. All that has to be taken into account. The closer the circulating supply is to the total supply, the scarcity is larger and the tokens are more valuable.

[Queenes22]

It is true and I will agree with you on this, when the total supply of token is less, the price will go up after it hits the exchange, but when the supply is too much it makes the price to dip, and thus has become a real issue to all those who bought into the ICO.

[Devawnm367]

Overall it really does not matter, I personaly like lower supply coins in the 10 mil range because the overall price is usually higher but if a coin rises 1000 or even 20000%  your still making 1000-20000%

[cryptorampage963]

This might be a good call for the short run, but in the long run, when the market is in a better condition, then it might prove us heavy and might cost us too. It will be better to not to manipulate the market in such a way.

[Sifon]

Coins with low circulating supply tend to increase in price more rapidly in the short/medium term. But this is highly dependent on whether more coins will be released or mined. The timing of release is also very critical

[Plumbank]

This is more or less like an ambivalent feeling. It is good that the market is being manipulated like this to make them rare and to increase the demand, but there are high chances that it will cost us a lot in the long run.

[CryptomartN]

It is usually good lowering the circulating supply of a token. That will make the token more valuable and it is sometimes good for the investors because the lower the supply, the higher the price. It is simple.

[Awoben]

Most of the times I target low supply coins or tokens,  low supply gives a better chance at scarcity which brings about a hike in price.  Check coinmarketcap we have seen most low supply coin doing well with good USD value though there are also some few exceptions.

[BITSPANISH]

I often don't care too much about total supply amount of any token. I just care about how good project behind token is . If a token has a good project behind so it'll go to the moon very soon although total supply amount low or high . Don't waste your time to care about it cause it's nothing.

[my dream2021]

You are both right and wrong at the same time. Yes, if the tokens become rare it might create some spark and will be able to bring the market a little further up. But if these are being burned to manipulate it, then in the long run, it might be a trouble.

You right that can be problem
Speak about question OP good or bad it can't be appraise only just circulating supply of tokens or token burned try look too how much wallet holder of the token, because I belive if much wallet holder it means much ppl like token it and the price will be grow up soon.

[Champeon]

Currently,the market situation is not good enough to have higher profits and most of the ICO are ended up being scammed. Lower circulating supply of tokens will not encourage the investors if they are not able to gain the trust again.

[ambcoin]

I think it is good as the token will tend to have a higher value compare to billion supply token.  For instance, BTC its only 21m supply compare to ETH.

[Jonsnowstark]

Yes, if the tokens that are not sold are burned after ico, the lesser the circulating supply the more valuable the token will be but not necessarily increase the price. Because in price, there is another variable to consider, which is demand. Even if the supply is low but people are not seeing the value of the token thus not buying, the price will most likely not increase.

[tradcoin]

If the price is getting increased then I think it will be good for the investors because they will get the profit. Whenever you invest in crypto coins you can make a profit because the price is getting increased. Circulation is so important in price.

[tradcoin]

The blockheads that paid 5plus bucks for it saying it was an extraordinary arrangement apparently have vanished. A couple of us here knew it would drop on account of the circling versus add up to supply.

[Docnaster]

Artificial scarcity is usually quite obvious, and just because a token is scarce doesn't mean it's in demand, lowering the circulating supply wont necessarily increase the value of the token as it doesn't increase user interest in combination. For most projects, lowering the circulation will have little to no effect, as though the value of each individual token may increase, the absolute market cap will remain the same, and so as soon as the tokens are re-added back to circulation the rate will drop concomitantly.

[Gurjasmeet]

I think it's the fundamental rule.if the token circulation is small ,then the market will grow up with their demands. but if coins will circulate big numbers then the market demand less.that results would be bad.