Token burn

[Fidelityman]

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?

[mk4]

Correct me if I'm wrong, but I think it's mainly to increase the price(due to lower supply) in a non-organic manner. And it looks like their plan is working as expected:



Source: https://coinmarketcap.com/currencies/no-bs-crypto/

[ngm22585]

The BNB token actually completes a token burn every quarter...

[xfaqs01]

yup its a strategy to deflate the price, since the price is dictated by the law of demand and supply so the more supply the lower the price the lower the supply the higher the price, and ive seen some startups doing this to increase market penetration, i see nothing wrong about though.

[hunnykaushal]

This is known as deflation model.

With burn token supply decrease and lesser  the token supply, more the demand will increase price.

[mmo4me.2016]

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?

Burning the token will reduce the number of tokens circulating in the market, the equivalent of scarcity, but not the scarcer will be more valuable!

[snipie]

This is known as deflation model.

With burn token supply decrease and lesser  the token supply, more the demand will increase price.

But you have to say also that the burnt token after a short rise will lose its value a while because supply will be far more than demand. Everyone is selling to collect fast gain.

[shamc]

With a name like no bs crypto I would guess it's a shitcoin. However wagerr does decentralised sports betting directly from their wallet and some profits received by their nodes are burned, so price will increase over time

[Herbert2020]

there is no logical reason for burning tokens in this large scale for any project. in fact when some token is doing this it only shows that they had bad plans and had no idea what to set the supply at so now they are left with a huge amount which they don't know what to do with, so they burn some of it.

but realistically burning tokens is done for publicity and to make people think the scarcity of the token is increasing so the price should rise. sometimes it works too and a pump takes place as they pull this shenanigan. another reason why they do it is because they are left with a huge amount of token which they can not do anything with. they can't sell because the market will be annihilated, they can't use because it is useless so they burn some so that they can get something out of it at least.

[deadthings]

This is a normal procedure. "Burning" means eliminating existing tokens from circulation. Many projects doing this by sending them to a non-existent address - for example: 0x0000000000000000000000000
The security is that such tokens are not recoverable, because no one is able to generate private key to this address.

[TheBeardedBaby]

This topic should be moved to the Altcoin section where it belongs.
It's a bitcoin discussion here!

[kifumi]

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?

The idea is that miners/participants should show proof that they burnt some coins i.e., sent them to a verifiably unspendable address. This is expensive from an individual point of view, just like proof-of-work, but it consumes no resources other than the burnt underlying asset.

[livingfree]

Token burning usually done to lessen the supply so the demand would increase. That causes hype for that coin and possible to reach another price level but not all those tokens that conducts token burning is doing good. Like that no BS crypto, the name seemed to be invented without any hesitation and just to make a coin that will make its devs earn some money. Whether they'll burn their tokens or not I don't think that coin is going to be something.

[Ava Duvall]

This is known as deflation model.

With burn token supply decrease and lesser  the token supply, more the demand will increase price.

I agree, exactly what I wanted to say. The deflation model is best to get out of bear market and into bull market

[ivanleon]

Correct me if I'm wrong, but I think it's mainly to increase the price(due to lower supply) in a non-organic manner. And it looks like their plan is working as expected:



Source: https://coinmarketcap.com/currencies/no-bs-crypto/

Not so long ago, these tokens in my wallet was $ 7, if I'm not mistaken, and then the price rose sharply to 16. So the burning of the coins had that effect. So in fact, this fact has a positive effect on the market price.

[coco23]

A token burn after an ICO is done to attract investors. If they know that unsold tokens are burnt investors could be encouraged to invest more to get a larger share of the remaining tokens in circulation.
A token burn is equivalent to the token generators giving proportional tokens to all investors if they haven't reached their max cap.

[MatinSTR]

There 2 types of token minting. The first mint all tokens at once and then burn unsold. And the second one - tokens mint after ICO ens and all calculation done

[Docbee]

When token is burn the amount of token in circulating will reduce but as far as nobs it is not a good coin it doesn't have any specific use case wondering the reason it was launched initially.

[cryptobae10]

I think token burn has 2 parts

1. It can be a plot to reduce circulation supply of a token Nd in the process cause a pump and big price in value of item
But suddenly after the pump it will be reduced and cause a great loss to investors

Similarly with project of good quality, it forces dumpers to sell and leave the remaining tokens for real value and utilization
The choice is ours o

[sacskate]

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?

burning tokens lowers the total supply
the less supply the more demand and that increase the token price