Token burning

[Rubick99]

About 2-3 years ago many ICO project that using this event to decrease their token supply and hopefully that token will be expensive as a supply and demand law. But in fact, they just have less demand and then this project ignored. Don't trust this marketinf strategy anymore. Event big coin not using this.

[andycarrol]

About 2-3 years ago many ICO project that using this event to decrease their token supply and hopefully that token will be expensive as a supply and demand law. But in fact, they just have less demand and then this project ignored. Don't trust this marketinf strategy anymore. Event big coin not using this.

indeed by burning some supplies can make coins that are obtained or coins that are circulating difficult to obtain but those who are developing must know that not only can that increase the price at the exchange place, there must be good news that can trigger investors to enter in supporting the coin which was developed so that with a combination of these two methods I guarantee can provide price increases.

[sandra_x]

Token burn mechanism is effective mostly in the short term for most projects, the more important factor for the success of a project long term has to be real value proposition by the project and community support. Many of the token burn platforms are not doing so well at the moment. Many are just like ponzi schemes

[SMF17DSN]

There is some new dev. project who want to burn their token to make some noise but other new project are just fake and make some profit. idk if there would be some decent new dev. project nowadays....

[Doranile432]

I will like to make example out of few popular projects in crypto space today that have this burning feature

1. Binance exchange did burn off some of their tokens to reduce it's max supply and increase it's value, it did end up working because BNB token already have its own use case, it's a very demanding coin from scratch

2. OKEX exchange token (OKB) is another good example too, they burn tokens to reduce supply this making the coin to grow higher in value, low supply equals to high demand but only for use cases that works

Burning feature only makes sense if the token already has a very good use case

[carlisle1]

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.

yeah and in 2018-2019 this burning becomes popular as many companies are doing the same but still nothing comes good to their tokens price because some are useless generic and others are too much volume that the burning seems to no effect at all.

It's the most useless process i have ever seen around in economical aspects.

I think this is useful to those who  has Big volume but also has a good performance,this enhanced their capacity in distribution and also in the eyes of investors so meaning it depend on the status and future plans of each project.

[Farma]

Token burn mechanism is effective mostly in the short term for most projects, the more important factor for the success of a project long term has to be real value proposition by the project and community support. Many of the token burn platforms are not doing so well at the moment. Many are just like ponzi schemes

it is effective if the coins used are popular coins. this is like burning a popular item with the aim of making the item have limited stock. if the item has a limited stock, it can have a good effect on price. however, some projects that do this, sometimes do not have any effect. I can only conclude that they took the wrong strategy.

[LbtalkL]

Technically the result of a token burn is a price hike. You can compare it to your local store like for an instance there is a limited supply of chicken meat, obviously, the sellers will sell it at a high price that is what happens when you decrease the supply of a certain product or asset. That is what some projects are doing some do it as an event or occasion yearly, every 3 months like Binance. I heard some altcoin before has a different method of burning they burn their token supply when you send any amount of their token or made any transaction but  I don't know if they are still running it.

[tvplus006]

...Binance exchange did burn off some of their tokens to reduce it's max supply and increase it's value, it did end up working because BNB token already have its own use case, it's a very demanding coin from scratch...

This is the most successful example of how burning a coin increases its value. But in addition to the burning itself, the value of the BNB coin increases because of its value to exchange participants. In addition to reducing the Commission, BNB holders have the right to participate in IEO held by Binance.

[mr.robot8]

many of the ico, of the new projects after their end plan the burning of their tokens at certain intervals of time with the sole aim of keeping the price high on the market,thus making it circulate less

[mdzahed134]

I will like to make example out of few popular projects in crypto space today that have this burning feature

1. Binance exchange did burn off some of their tokens to reduce it's max supply and increase it's value, it did end up working because BNB token already have its own use case, it's a very demanding coin from scratch

2. OKEX exchange token (OKB) is another good example too, they burn tokens to reduce supply this making the coin to grow higher in value, low supply equals to high demand but only for use cases that works

These coins are from two biggest exchanges token, they have huge demand in crypto space, so you can't give too such examples. Specifically OKB is big increased, almost burned 65% tokens from total supply. I don’t think it’s significant changes will not happen if after only a several million tokens burn. Even not impacted price in many real uses projects like Pundi X.             

[danielchris]

Although there is fluctuating of price in the market grow up & slow down. But there is wording of  any coin is not justified. I think  it's cheap language for  them.it is human being nature, not anyone wants to be face loss.but market is running base of  fluctuating. I think so.

[key4co.in]

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.

In the first place, they should not or stopped creating a huge supply of their token, no investors will be attracted to projects that have a huge supply while they have a useless platform, it's not about supply anymore it's more on the platform and if the platform has a good usage to the community.

This is good reasoning 👍, if the total supply for the coin/token is not so large, what's the need for burning huge amount. However, even some coins with fair total supply like BNB still burn quarterly, just to reduce circulating supply hence increase value. Also, some projects deliberately issue a very large total supply, then burn to create FOMO.

[103deltafox]

Token burn is actually good, it will help reduce the total supply and the circulating supply, with this, supply would tend to be low and as such demand will increase,making the price of the token to be high, but then the project should have a use case something people can always look at and demand for it,because only token burn might just be useless without a working product.

[Diamond_Darrell]

Token burn is actually good, it will help reduce the total supply and the circulating supply, with this, supply would tend to be low and as such demand will increase,making the price of the token to be high, but then the project should have a use case something people can always look at and demand for it,because only token burn might just be useless without a working product.

You're absolutely right. Burning tokens is a good informational reason to raise the price up and sell tokens to greedy hamsters at a high price) This is how it works. People get crypto-phantics that will burn in the future, and developers receive highly liquid assets, money and other goodies in return

[BitTraderCute]

Token burn is actually good, it will help reduce the total supply and the circulating supply, with this, supply would tend to be low and as such demand will increase,making the price of the token to be high, but then the project should have a use case something people can always look at and demand for it,because only token burn might just be useless without a working product.

sometimes its not effective while dev team have no another milestone. they decrease supply alot but if no important MPV that could not attract investors it will not run well. token burning not only the key to make price growth, there are another thing that maybe more important than it.

[coinswebid]

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 think tokens or coins burning is one from many way from the dev team to increase the value from their project
because this actions will reduce the supply, and less supply will bring more demands, and more demands will push the price up, sometimes in slow movemnts, sometimes in fast mode buddy

[WannaCry]

token burning is no use if the project is not performing properly.. may believe that when a project burn a portion of their coin the price will go up because it will limit the supply, its wrong!!

[mksundip]

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.

yes right, there is no effect whatsoever from the token burning. because so far there have been many wrong perceptions. I think they are burning tokens by publishing it to the public and hope that the price can be pumped. but in reality that is not the goal, actually the pump price if the traffic movement on the exchange is large and also the purchase demand is high. that's the main goal. so burn tokens like a futile act

[restuibu]

it all depends on the usability and demand in the market, many projects are trying to reduce the total supply by burning tokens but all in vain, they are not aware that their project is not in demand. such a project even if it will burn all existing tokens it will still be useless, burning tokens only creates hype