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

[kier010]

coins will have more value if it has demand with low supply circulating. so even if the coins have low supply circulating if it has no demand the value will still be low. so projects with high demand but low supply will likely increase its value because more will buy at a higher price.

[tredingaltec]

I myself prefer coins or tokens that have a fairly low supply and have a clear product

[Nicolas Bebek]

in my opinion, circulation coins will make a very weak turnaround coins were not smooth. This must be bad, because the fewer devotees. and it could be that will weaken the value of the exchange rate.

[Phil419She]

I think if there are a lot of supplies of the coins and the circulation is low, that may be bad for the coins. It just shows that the coins are not that important in the circulation at all.

[micle222]

If the price is low and the total supply is small, one day the price will be very fast.
If we understand the system, creating coins so much is so that the future can be used and future use is evenly distributed.

[marufnang]

Well obviously with the smaller amount of supply, there will be a big chance for the price of the coins to be higher, but that will be depend on the demand of the market, even though the supply is limited if the demand also low, then the price won't be able to rise significantly.

[Pokemon Go]

which determines good or bad tokens not the amount in circulation supply of tokens, but from platforms and teams, if the platform is good and the team always supports investors, I am sure the tokens will be good and prices will increase, so determining the good or bad tokens is the token platform and team not the amount in circulation supply of tokens.

[rricksu]

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.

I think if we compare the scenario to the local Fiat currencies and economy, Holding money is not healthy for the economy to regulate. Relating it to the crypto economy, holding cryptos is good, but it is better to regulate the supply of tokens for much more lively transactions.

[indobitcoin.tk]

This will be back on how good the existing systems or concept behind them and also the token team that exists therein. There are two speculations that might happen, first probably as you say that the less make it more rare and expensive it could have happened if does have quality. but the opposite is also too little will certainly be difficult to sell it and even investors are not interested in it.

[fanji]

the price will affect if the supply coin is too much, we can just take the example of doge coin whose total supply is 116 billion the price never rises so rapidly, unlike bitcoin which has only 21 million supply but from year to year has experienced a rapid increase, maybe the only way to fix tokens that are over supply must be burned

[adzino]

The price is not just about the supply of tokens. It also depends on how the tokens are supplied and the project. If it is just a clone project, chances are high that the price will fall and become eventually useless. If no progress is seen on the project or on the verge of being abandoned, the price will be low and end up dying. So, it totally depends on the potential of the project.

[Gabmot]

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.

I think this perception is actually true to a reasonable extent. In the long run, any project that considers this should benefit greatly alongside their investors.

[gerbas]

The logical way would be the smaller the supply then the rarer the coin would, and the price will also be higher. But sometimes it doesn't goes that way, there is time when a coin with low supply has a low price also, cause there aren't enough people who are looking on that coin.

[Arkham Knight]

Traders prefer low supply of tokens. I've made a lot of profits last year on low supplies and they usually can multiply up to 100x or 1kx if possible. They are good for short term trading and I have not seen any disadvantage of low supply coins because large supply coins even execute burning of their tokens.

[bitcoinbuyer]

Lower circulating of tokens is not so bad because it helps them to be on the wave and to have their particular way for the development and improving.

[lebedi]

The lower going is not so bad because to my mind it is a ign of the stability, am I right? I consider that it will bring the constant stability but the bull run will make this deal more difficult.

[Servantes]

Burning the unsold tokens is a good tactic IMO, we should not forget, that people tend to judge the coins / tokens not just by the actual price, but also by the total market value, and the smaller the circulating supply is, the less the market cap, which means theoretically more room to grow.

[AgentZero23]

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.

Technically yes, the fewer the supply the highest chance the price will be more valuable. But, it will go down with the demand and the use case of the tokens. Investors now are very smart about their investment. They invest in projects with an actual product and a great developer behind it.

[kobita333]

It actually depends on the market demand, not on the circulating supply. If circulating supply would be the issue, there would be more coin same as BTC value. However, if the coin has utility, it will grow certainly. You have to for some time.

[sanacaks]

If any project burn some tokens it must have some influence on token prize. Because its limiting the total project value. Its is just simple math but we must not forget about manipulations can be happen on tokenamatics.