Token burn

[qazgroup]

It is just a psychological tactic just to get investor confidence and trust, by doing so the team confirms that it is not holding the unsold tokens, if the team keeps holding the unsold tokens the team will be blamed everytime token price dumps because team in such scenario is holding huge supply of tokens and they can manipulate the market but personally i think that no serious project will like to do that.

[1715402435]

1715402435

[Xclusive5]

Token burn is a good tactic in order to give value to a token. The reduction in the total supply of any coin will surely increase the price of the coin. Aside token burn, we also have buy back that is meant to serve same purpose just like token burn.

[dumplingsandsushi]

Token burning was initially a way for projects to deal with inflation (well, crypto's version of it).
Basically, you have way too much supply than there is demand so you get rid of some of the supply.

The effect it has is that it can increase the value of each token since there is a more limited supply.
Now, it has become customary for basically all ICOs to go through the burning process if all coins are not sold/distributed.

The thing is, this doesn't automatically guarantee that the price will increase.
A lot of ICOs arbitrarily set their max coins and generate a ridiculous amount of tokens.
It's like they think they can create value of thin air, which, of course, is impossible.
Then, just destroying some isn't going to magically bring the price up either.

Unless your project and coin has a specific real use that brings demand organically, you can burn all you want but it won't change anything.

[Ravenangel]

I think this is done when not all the tokens were sold as planned by the ICO, they cut the supply to revalue the token automatically, because if you cut the distribution the price will increase because it becomes a token of little circulation, similar to what happens with bitcoin to have a limit set.

[Haterstestbtc]

Well, at this year due to market condition some ICO project has insufficient funds makes it unsold token which most investors are running out of investment due to losses of capital. This will come out in an agreement of token burn which it mostly decided by the team owner to reduces the supply allocation to make the value of token more expensive.

[Supremacy2]

Hi guys, I noticed some projects use to burn their token after ICO or after listed on exchanges.
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.

Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/

What's the advantagess and disadvantages of burning the token?

To my best knowledge. Token burn is a means of reducing the total and circulating supply of the token, to help the value of the token increase in the market.

[Endikadija]

Hi guys, I noticed some projects use to burn their token after ICO or after listed on exchanges.
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.

Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/

What's the advantagess and disadvantages of burning the token?

To my best knowledge. Token burn is a means of reducing the total and circulating supply of the token, to help the value of the token increase in the market.

They are thinking that's the instant method to increase the price of their coins but it looks wrong. The result will depend on the development, even you burn your almost all of your tokens and if there was no a good development and it will become another crap coin. What's the usefulness of token without any utility?

[Harriti]

I don't know much about this but as I think token burn will make total supply amount of token decreased and it's also mean that price of token will increase but sometime it'll not happen as develop team hope ). There are so many tokens which burned but price kept falling all the time ). It's also a good way to create a pump but it still depend on quality of project behind.

[Gembul0705]

I think this is strategy always use by many project to make investor to interest withe their token because like other member said when the supply is decreased and demand of this token increase we will see that the price will growing up. But this depend on holder because when the hodler see price is up maybe they would sell their token and this can cause the price drop again. So they must do another strategy to make price would be stable.

[Invest-or]

By burning the tokens you make them more scarce and thus it should normally increase the price and the market valuations on the exchanges if the tokens are listed.

[delton22]

Burning a token means that they are reducing the total supply of that particular token making its value increase.. with this the token will be scarce and be in demand

[Jadesola]

Token burn always have posiyive effect on the market because the lower the supply the higher the demand and when you have higher demand it tends to inflate the price.So is good for the market.

[Reid]

I is a strategy when they see not much movement with the value of their coin.
It is a basic one and used much. Burning tokens to simply make it larger in value because of supplies.
Since there is no buyer or its rank is going down they  will try to change that to be seen again by investors or traders.
It is also a good preparation until the developers unlock their tokens.
Of course they will dump it afterwards making a lesser value of it.
Well they are in profit at that point.

[rricksu]

Hi guys, I noticed some projects use to burn their token after ICO or after listed on exchanges.
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.

Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/

What's the advantagess and disadvantages of burning the token?

Based on what I know about your question: What's the advantage and disadvantages of burning token is that I think the purpose of burning the token is to have fairness to the investors who bought the initial token in token sales. If they still use the remaining token, it will be unfair for the investors.

[iyke12]

Tokens with excess supply are burn to instantly limit the total  token supply . When the supply get lower and demand remains same or increases it means the token will increase in value . This is one of the major reasons tokens are burn .

[Stakerist]

Generally, burning tokens usually have different goals.  One of them is the increase in the value of coins, burning tokens increase the demand for them.  The next reason is to prevent the devaluation of coins, such actions make it possible to maintain the quotes of tokens at the right level.
 
Recently investors are interested in the further fate of tokens not sold after the end of the ICO.  If a project burns tokens, then the likelihood of the project fulfilling its obligations to the investor increases, because burning coins creates favorable conditions for the growth of tokens in the future, because it is very important for those who invest in promising projects in their opinion!