Token burning

[isaac_clarke22]

To your second to the last statement, you're practically pointing to how demand works and I think that token burning won't help that and it would just make it worse. If it still doesn't live to its own value, then I don't think that token burning is a way to pump the price (though I don't want to describe it as pump), because if it just ends up getting dumped in the end, then it's pointless.

[fortunecrypto]

Hey


I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

I doubt it will help if the project does not have support and the platform is useless, I have seen projects with huge supply and they are ok with it and I have seen projects that burns their tokens to minimize the supply but unfortunately because the platform is useless, it's not gaining support, what I'm saying is it's not the supply but the project itself.

[Crypto_Block_Chain]

A token burn is still useless if there is no demand for the token. Most projects do a token burn hoping that the price will rise due to less token circulation but this doesn't work if there is no demand.
It's the most useless process i have ever seen around in economical aspects.

It is totally useless thing for a new token to do, since it kills the demand which is not high for new token.
However I find it quite useful for high demand coin/token since the supply will be lower than demand and the price will be straight higher

Usually, no new token does it.
You are right and it's not required for a new token to have a burning.

[WeedGoW]

Project with token burning is lacking foresight at the start and only doing burning to hope for an increased price. They are too greedy when first create the token, set the number of tokens too much. Just these points are  put people away with project that has token burning.

[Shallow]

People needs assurance that what they are buying will worth it and have value as time goes on, this is the most important and relevant thing in my own understanding. So not minding the burning of token or not, a project whose team is good and working hard as well will always reflect on the price of the token. What I think is, one shouldn't buy tokens because of token burning alone which is of course set by the team but instead one should buy based on what the token is all about and its potential value.

[Mealea]

Before now token burn is always effective but now it is nothing if i may say because it is not working again unlike before now. burning of token does not guarantee any increase in price because the only thing that can bring increase to price is increase in demand.

[FanEagle]

Burning tokens/coins for the reason of expecting the higher value for remaining circulating supply has been into crypto community's practice for years. By 2014/2015, I have seen people were sending their excess BTC to an addy which was known for not having any privatekey to handle the balances in it. It sounded like a foolish idea to me n those times itself.

But, recently I come across about a project like they initially air dropped huge amount of tokens and now burning some percentage from those air dropped tokens with some criteria. It sounds like good practice in my opinion.

[cryptonewbie]

A token burn is as useless as the p in psychology if no one wants the token. If there is no direct motive for burning tokens other than to shill a project then it won't make any difference to its tokenomics. Once a shit coin, always a shit coin kinda situation. One other thing I hate more than token burning is token swaps.

[nelson4lov]

Hey


I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

Let's recap:

1. Token burn was an implementation by ICO projects in mid-2017. It was aimed at reducing supply and driving hype to the project.

2. It worked pretty much in 2017 as most projects followed suit and soon enough, we had tens if not hundreds of projects applying the same implementation.

3. It was not until the 2018 bear market that we learnt that token burning doesn't correlate with price increase. Only on  few occasions.

For the records, Binance, Pundi X and a host of crypto projects used token burn in their token economy. Binance does so with some of their profits – However, they're burning team tokens instead if I remember correctly.

As much as we want to believe that low supply = epic increase in prices, we shouldn't forget that the ultimate driver of price is the the actual demand for it.

[Yamifoud]

This is a common practice of ICO before but I'm not sure if these new projects did the same.

Well, burning tokens initiative is also having a price effect but it never feels especially if that certain project did nothing to contribute to the market. The price will remain at low even though they are cutting the total supply in order to uplift the price but it seems to be useless. In general, burning token means nothing if that project is just a dead one or scam.

[Ziskinberg]

in my understanding they are reducing their supply that is token burning, at the same time when a token or coin is being burn in some occasion the price go up, but this process is more effective during the 2017 season , during that time if a token gets burned the price will go up, unlike to day, 

If the project caught the eyes of the investors, then token burning would bring good result to the project, however, for shit projects who do token burning, it's useless as nobody is watching them, maybe those investors that will just regret later because they invested in a wrong project.

[HerbertMarcel]

Doing so means attracting the attention of the investor so that the scammers will be invisible in their dealings. So in such a process, the demand for coins is steadily increasing.

[heygeorge]

If a coin is listed with BTC pair and does Token Burning at the time of BTC halving. Would it have a double effect?

[Questat]

If a coin is listed with BTC pair and does Token Burning at the time of BTC halving. Would it have a double effect?

No, it depends on the project, if the project is not getting the attention of the investors, they will not get a positive effect for tha token burning.
Both are really separate, bitcoin would be successful but it will not happen to its trading pair.

[doctor877]

There is no point burning what is not widely used and what is the purpose of burning ? Is it to reduce supply or circulation? It still won't have any effect and not going to be necessary. You can burn your tokens as IEO/ICO leftover or at a specific time to reduce the supply. A burning model for transaction is dead at arrival especially for a struggling project. The idea is not enough to attract investors.

[kayvie]

There is no point burning what is not widely used and what is the purpose of burning ? Is it to reduce supply or circulation? It still won't have any effect and not going to be necessary. You can burn your tokens as IEO/ICO leftover or at a specific time to reduce the supply. A burning model for transaction is dead at arrival especially for a struggling project. The idea is not enough to attract investors.

It is true actually, but maybe they are using this process or the burning of token just to attract the attention of more investors. They may be thinking that if their circulating supply will be reduced, there is this possibility that investors will come thinking that the price of their product might increase after burning. But yes, we have seen a lot of projects doing this and it has no effect at all if the project is useless.

[JeotQ]

Token burn is not that important, project must be demanding in the first place and implementing burn in such project will help the price a lot more, burning tokens is not meant for all projects

[BlackFor3st]

Hey


I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

Burning is a process or a tactics of other project owners in order to make sure that their tokes/coin price will grow. Once the supply will continue to decrease while the demand will continue to increase then it will trigger the increase of their currency prices.

That is why the other project owners are implementing a buy back option and burn process just to achieve their goal and to gather some investors also because investors will surely to gather if they can see a potential increase of their investment.

[FlagstaffRevel235]

Token burning is a process whereby the coins associated with the token are associated with the principle of value addition or price reduction. The process may increase the market activity of the coins exactly, but in the future it creates a non-profit situation in the market situation. Which is a threat.

[$anounimus$]

This is one of the strategies made to attract market demand, Sometimes this method is considered successful even if it is not permanent.