Blue_oxen
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June 04, 2020, 06:35:57 AM |
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Deflationary token is not worth investing in because most of all this so called deflationary team believes reducing the total supply everyday by burning the token will give the token more attention because they are aware people love to invest in a project with less total supply even if the project is without any reasonable usecase. So I guess their main aims is to make their money as quick as possible.
True! But it's seemed like their plan isn't on the right track at all. Deflationary tokens can't increase its value simply by the reduction of the total supply. Common sense arrives when people see the demand over the supply, they'll buy it at a higher price. However, the thing that the team can't control is people's demand. The token itself can't attract people to buy then how could the demand raise? That's one of the reasons why there's not a lot of successful deflationary tokens on the market.
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rz20
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June 04, 2020, 06:44:16 AM |
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I am well aware of coins with controlled inflation like BTC, where a finite number of coins will be generated at a controlled rate. Very recently I came across deflationary tokens where coins are destroyed whenever a transaction is made and they will end at some time. My question is what is the purpose of creating such coins? Are they worthy enough to be invested ?
I received some BOMB as an airdrop some time ago and out of sudden, it started mooning I sold them at $8-10 each. If you are talking about BOMB like token then If I were you I would not invest much in them because they are an extremely risky investment.
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blue Snow
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Marketing Campaign Manager |Telegram ID- @LT_Mouse
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June 04, 2020, 07:13:08 AM |
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There are many deflationary tokens which are doing good on exchanges, like the one you mentioned.
it's not a good if compare it into (joke) exchange like mcaffedex and friend. so tell me why would anyone invest in such coins?
no one bought for investment. it's for fast profit only using a pump and dump schemes.
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Vitalicus
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DIA | Data infrastructure for DeFi
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June 04, 2020, 07:47:11 AM |
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There are many deflationary tokens which are doing good on exchanges, like the one you mentioned.
it's not a good if compare it into (joke) exchange like mcaffedex and friend. so tell me why would anyone invest in such coins?
no one bought for investment. it's for fast profit only using a pump and dump schemes. Right, deflationary tokens are more likely to be "fast-food" in this market. Traders hold them for a short period of time and expect their price goes up fastly by believing that reduce the supply will increase the price. However, it usually don't bring back the expected results. The reason is that deflationary tokens can't attract trader to buy them.
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Jogmania
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June 05, 2020, 06:24:33 AM |
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There are many deflationary tokens which are doing good on exchanges, like the one you mentioned.
it's not a good if compare it into (joke) exchange like mcaffedex and friend. so tell me why would anyone invest in such coins?
no one bought for investment. it's for fast profit only using a pump and dump schemes. Right, deflationary tokens are more likely to be "fast-food" in this market. Traders hold them for a short period of time and expect their price goes up fastly by believing that reduce the supply will increase the price. However, it usually don't bring back the expected results. The reason is that deflationary tokens can't attract trader to buy them. If you are interested in taking risk then the deflationary token is for you. Just keep some space in your portfolio for this token. Every coin has a day, maybe someday this coin also move to the moon.
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DDante
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June 05, 2020, 06:29:52 AM |
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I knew bomb token was good, simply because it's the first of it's kind, it has no other usefulness that burning tokens but been the first of it's kind? Well yeah it will be easier to attract investors, and now deflation tokens have become so popular that every devs wants to create one, I managed to keep two deflation tokens, BAgs Token and Ethplode which are now valueless, dead probably, glad I earned them through Airdrops
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Jogmania
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June 06, 2020, 06:12:46 PM |
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I knew bomb token was good, simply because it's the first of it's kind, it has no other usefulness that burning tokens but been the first of it's kind? Well yeah it will be easier to attract investors, and now deflation tokens have become so popular that every devs wants to create one, I managed to keep two deflation tokens, BAgs Token and Ethplode which are now valueless, dead probably, glad I earned them through Airdrops
I think BOOM is not the first deflationary token but its certainly doing good at the moment. deflationary tokens are more volatile then normal crypto tokens like BTC, Eth, they are good for short term investment.
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HankePoster
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June 07, 2020, 02:19:55 AM |
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No token can have the price only in an upward direction, price swing are an integral part of any coin. Deflationary Tokens prices are low and it's good to buy coins at cheap rates. The problem is we find too many anomalies in coin when its at a low price and start buying when it goes up.
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vlast01
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Dolphins Finance TRUSTED FINANCE
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June 07, 2020, 06:39:13 AM |
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For me it is a pure buzzword for those who want easy money. Deflationary tokens should be for very long term hodl because the price of each coin should grow in the future, but the problem is with how you ensure the trust for a long time for the token?
Some new token take coins burning to extreme and cause their token supply to shrink over time. This should make these coin very valuable. But it's not they just ultimately burning a lot of tokens and doesn't make any promises about when the token supply will be depleted.
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Buttercup123
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June 07, 2020, 06:41:47 AM |
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For me it is a pure buzzword for those who want easy money. Deflationary tokens should be for very long term hodl because the price of each coin should grow in the future, but the problem is with how you ensure the trust for a long time for the token?
Some new token take coins burning to extreme and cause their token supply to shrink over time. This should make these coin very valuable. But it's not they just ultimately burning a lot of tokens and doesn't make any promises about when the token supply will be depleted. Deflationary token actually reduce or burn supply over time, the rationale being that since supply is decreasing constantly, the scarcity should rise thus increasing the value of the remaining tokens. However, deflationary currencies are yet to prove their worth. Almost all deflationary token is lack of proper use cases and adoption, illiquidity, not being listed on well-known trusted exchanges and lack of tokens burning on centralized exchanges .
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distr@yopmail.com
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June 07, 2020, 06:46:59 AM |
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For me it is a pure buzzword for those who want easy money. Deflationary tokens should be for very long term hodl because the price of each coin should grow in the future, but the problem is with how you ensure the trust for a long time for the token?
Some new token take coins burning to extreme and cause their token supply to shrink over time. This should make these coin very valuable. But it's not they just ultimately burning a lot of tokens and doesn't make any promises about when the token supply will be depleted. Deflationary token actually reduce or burn supply over time, the rationale being that since supply is decreasing constantly, the scarcity should rise thus increasing the value of the remaining tokens. However, deflationary currencies are yet to prove their worth. Almost all deflationary token is lack of proper use cases and adoption, illiquidity, not being listed on well-known trusted exchanges and lack of tokens burning on centralized exchanges . if I'm not mistaken, BNB also uses this method in planning BNB tokens for a certain period. but overall, when supply begins to decrease it must be balanced with renewal to increase demand based on the use-value of the coin.
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popeye95
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June 07, 2020, 08:32:09 AM |
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I am well aware of coins with controlled inflation like BTC, where a finite number of coins will be generated at a controlled rate. Very recently I came across deflationary tokens where coins are destroyed whenever a transaction is made and they will end at some time. My question is what is the purpose of creating such coins? Are they worthy enough to be invested ?
What's the point of token burn every time a transaction made? How anyone thinks to combat and reduces inflation by tying it to number of transactions is beyond me. How about it someone drive up inflation by keep making transaction? Does that sound right? Though I don't know much detail on this coin but from my points, it's not really worth.
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HankePoster
Jr. Member
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June 14, 2020, 01:06:10 PM |
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No token can have the price only in an upward direction, price swing are an integral part of any coin. Deflationary Tokens prices are low and it's good to buy coins at cheap rates. The problem is we find too many anomalies in coin when its at a low price and start buying when it goes up.
If there are tokens that always move only in the upward direction, then everyone will get rich quickly, especially traders and investors who buy in large quantities, normally the tokens that already have good or expensive value at this time are tokens that used to be also cheap, there are no tokens that are expensive when born. Thats what I am saying. Deflationary tokens are cheap today and their future is yet to come. Why not reserve some space for them in our portfolio rather than buying them tomorrow when they are bullish.
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Dariusburst
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June 14, 2020, 03:13:10 PM |
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No one has interest in deflation tokens because they have no good use case apart from reducing max supply over time through burning process, I will only invest if they have better use case thus with deflation feature too
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dhemasm
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Moderator
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June 14, 2020, 05:18:53 PM |
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Not really sure about the real purpose though but it's the main things was every transaction was making the token reduced and burned right and making the price was more stable? So basically it's mainly driven on community and not really sure about an real case too, Besides if that token have another main purpose like payment tool on some platform. Not really sure too, Did you guys have good example on deflationary scheme but also have an real purpose?
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jacafbiz
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June 14, 2020, 05:31:56 PM |
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I am never in support of deflation, inflation is good for adoption of a project, the most important thing is that the inflation should not be out of control, just like that of Bitcoin, this is the difference between Bitcoin and Ripple, deflation on the other hand discourages adoption because it would be centralised in the hands of the early adopters, this is why countries are more worried about deflation than inflation
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doctor877
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June 14, 2020, 10:57:09 PM |
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The deflationary system has expired or gone low. It all started as an experiment and different types was made. But no real project has used this system for it's token. Token burning by transfer everytime isn't a good plan for anything that wants to last long.
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HankePoster
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June 16, 2020, 06:50:39 PM |
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No one has interest in deflation tokens because they have no good use case apart from reducing max supply over time through burning process, I will only invest if they have better use case thus with deflation feature too
I think you have to revisit your opinion after seeing the following stats https://coinmarketcap.com/currencies/boom/
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dhemasm
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June 16, 2020, 07:01:55 PM |
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Hmm Interesting, Good volume and marketcap too for something like this but looks like the ROI was really bad since deflationary token was supposed to make the price was stable by reducing the supply for every transaction it's not it? Well still curious if there an real use case token that have this scheme.
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HankePoster
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June 20, 2020, 06:25:57 PM |
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Hmm Interesting, Good volume and marketcap too for something like this but looks like the ROI was really bad since deflationary token was supposed to make the price was stable by reducing the supply for every transaction it's not it? Well still curious if there an real use case token that have this scheme. I think its good to keep them in your portfolio. So far there only use case is that they are burned in every transaction. With time more use cases will pop up. Lets wait for a while
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