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

[spartaka]

The circulating supply and max supply are important metrics for me...if the supply is to high for the project and the target group then there will be always an oversupply and this makes it much harder to get up in price.

[1714875244]

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[1714875244]

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[lolxxxx]

Well in my opinion it is good as the number of tokens will be lower then there will be a lot of demand of tokens if the ICO succeed which lead to the raise in the price of token because of the shortage of the tokens.

[Glory90]

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.

low circulating supply of tokens is good but that's not enough to make it rare, some important things must also be considered such as total supply of tokens and other things that can make it have high demand in the future

[h0lybyte]

What makes a price going up is less supply and more demand, if there is lower circulating supply of a token, there will be much possibility of price increase.
Most people randomly pick coins having large supply, Always choose a  coin for investment that has lower supply

[cryptojohnn7]

Actually, I agree partially with your thought. There should always be balance in the market cap. There is no scope for forever going in the bulls rather there must be bears also. So, what we can say is going in a project which seems legit, whether the price is low or not.

[tee-rex]

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.

There are two fundamental factors at play here which ultimately determine the price of an asset. The first factor is, as you noticed, scarcity, but just being scarce is nowhere near enough to be valuable. The other factor without which scarcity has no importance is utility. In this case, utility means usefulness for achieving certain ends. So if something is scarce but lacks utility it won't have any value because it doesn't provide utility. But utility without scarcity is also pretty much useless for having a price tag. We cannot live without air, so it has absolute utility and is of vital necessity to us. But it still has no price tag because it is not scarce and freely available to anyone at no cost.

[bigchuks]

my school economics made it clear that when a commodity is scarce, there's a tendency for the price to go up.
That of cryptocurrency is not far from this principle else; why do you think people are needed to buy into a token? is it not to buy up and create such scarcity. Some projects like the inmusik will even encourage you to hold on their coin for longer period.

Dude; you're right!
But at the loss of project owners who may not get enough fund to complete their projects

[The Scorpion]

The circulating and total supply of a coin is a very powerful indicator as to a coins potential. Let's look at why getting in early on a low supply can be a gold mine. Take for example a coin with 1 billion supply and a valuation of 5 million. Now let's say coin surged for whatever reason and is now worth 10 million total market cap, each coin would be worth 10$.Now take that same scenario with a coin that has 1 million total supply. At 5 million valuation each coin is worth 5$. If 10 billion is thrown into it, each coin is now worth 10,000.That's the power of getting in early on a coin with supply.

[ImHash]

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.

Ideally having a small amount of supply is good, It can make the tokens more scarce, Having a small supply is not always good for every project, Some of them need a big supply to have enough tokens going in circulation.

[linyhan]

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.

Lower circulating supply due to many ICO does not reach the hard cap its consider useless dump or burned token. Low supply will depend the prices according to the demand, we will not consider that as good or bad for those holders. We will see the output when it comes a big changes.

[makercn]

I think it's a good thing to reduce the supply of tokens, because it will make tokens more valuable, and low supply will lead to price increases, which is very beneficial to investors.

[thaokhuyen03]

can be right. This is many developers and investors favor, by scarcity. Definitely worth alcoin will increase, when many buyers and sellers less. Issues profit developers; when they released little coin market, which means they will get less money for development projects. The majority of projects will calculate and release a certain number of coins into the market, then they recovered to push up the value coin

[Chachacoin17]

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.

Ideally having a small amount of supply is good, It can make the tokens more scarce, Having a small supply is not always good for every project, Some of them need a big supply to have enough tokens going in circulation.

Yeah somehow tokens with big supply is good in order for other traders to demand for more, but it made the price much cheaper. If the supply became lesser in circulation, it will make the price expensive and the potential holders will not dump immediately because there's a bigger chances that the coins will increase it's price value. When the demand increased while supply also decreased, more buyers will come and probably more will be selling their asset as well as panic buying will be.

[tuthienloc92bk]

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.

As we knew, this is the market. And the market always follow the law of supply and demand. The more supply, the more depreciation. So, burning tokens is the best way to keep its price.

[hydrococo]

If indeed the circulation of supply a bit, I think it is less good. Because it means that only a handful of people doing the coin Exchange. And this means that the coin is not so interesting.

[vinayak2628]

Yes it is good for prices. Because their is less fluctuations in prices and you will be earn in this situation. For low circulation supply you can check Quant Network project where only 14 million supply...

[otunayode]

Lower circulating supply of token is not a guarantee for successful outcome of any issued token but the lower supply is positive for any token and it also ensure that token are priced well in the market!

[Pendularin]

As for me it brings good development to the cryptocurrency that you're holding, since lowering the supply will make more demands into higher value of your coin. We now gains an opportunity to acquire huge selling price in the market if the coins became profitable. Many people will be eager to buy and holders will increase in numbers.

[arkaasay]

Overall it really doesn't matter, low circulation inventories can make prices rise temporarily because demand may be greater. But in the long run the most important is total supply.

[reflector]

The crypto market low circulation supply is good for future demand because all the investors are concentrate the potential token so some projects are follow the right way and plan for exact supply in softcap and hardcap. But many investors are not aware in these kind of tokens so many peoples are misunderstanding the low circulation supply tokens.