Deflationary Tokens

[philanthropist67]

I started this thread after coming in contact with BOOM token. They say they burn some coins with every transaction. The token is doing good https://coinmarketcap.com/currencies/boom/
This means that investors have an interest in deflationary tokens.

[pixie85]

So the makers of these coins are trying to deter people from spending and make a token for holders where whoever goes first loses?

If you hold the coin you have a chance of it going up in value but only if other people spend and burn their coins first. If everyone holds nobody gets any profit and the price remains the same? It's an interesting concept for researchers because they defy typical market logic. I don't think they are useful aside from that.

[Pecunia non olet]

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?

[Jogmania]

I started this thread after coming in contact with BOOM token. They say they burn some coins with every transaction. The token is doing good https://coinmarketcap.com/currencies/boom/
This means that investors have an interest in deflationary tokens.

There are many deflationary tokens which are doing good on exchanges, like the one you mentioned. But I think its too early to say these deflationary tokens don't have much scope. Lets wait for a while and see how things turn up for deflationary tokens.

[mersal]

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 ?

Bitcoin is not either inflated or deflated, it is just have finite number and miners are still working on to mint bitcoins which doesn't mean the coin is inflating.But due to the inflation on fiat value the price may looks like inflating.But creating  a coin with deflationary feature is just nothing other than for dumping the coins at some point so people may tend to hold in longer term but not everyone holding in long term will make reap out of it.

[Jogmania]

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 ?

Bitcoin is not either inflated or deflated, it is just have finite number and miners are still working on to mint bitcoins which doesn't mean the coin is inflating.But due to the inflation on fiat value the price may looks like inflating.But creating  a coin with deflationary feature is just nothing other than for dumping the coins at some point so people may tend to hold in longer term but not everyone holding in long term will make reap out of it.

Advancement in technologies is really welcomed at the start. The concept of deflationary token is new and it will take time before people start digesting this new concept.

[South Park]

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 ?

The advent of deflationary tokens was thought to be a very novel idea that will bring fresh innovation to the crypto industry.  It was created with the aim of reducing supply when some amounts of tokens are burnt on every transaction.  The developers thought this will create a scarcity in the market thereby resulting in increase in the price of the token.  However, this idea have not been successful as several deflationary tokens were dead today.

It is a novel idea I will give you that but that is about it, a novel idea is not necessarily a good idea and if everything that a coin has is its deflationary nature then it is not a good coin at all and people should stay away from it, now some people may say that such coins may give profits in the short term but that is true for almost any type of coin even for those that are scams, but eventually those coins will go to zero as there is no use case for them and eventually people move on to more exciting and newer projects.

[Jogmania]

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 ?

The advent of deflationary tokens was thought to be a very novel idea that will bring fresh innovation to the crypto industry.  It was created with the aim of reducing supply when some amounts of tokens are burnt on every transaction.  The developers thought this will create a scarcity in the market thereby resulting in increase in the price of the token.  However, this idea have not been successful as several deflationary tokens were dead today.

It is a novel idea I will give you that but that is about it, a novel idea is not necessarily a good idea and if everything that a coin has is its deflationary nature then it is not a good coin at all and people should stay away from it, now some people may say that such coins may give profits in the short term but that is true for almost any type of coin even for those that are scams, but eventually those coins will go to zero as there is no use case for them and eventually people move on to more exciting and newer projects.

Relax my friend. It's not disappearing overnight just like the last btc will be mined in 2140, it will take years before we ran out of token in any deflationary token project. Take it just like another betting project where you bet and either win big or loose.

[coinfinger]

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 am also coming across such concept of burning tokens for every transaction but I do feel it is kind of scam, devs are trying to trap investors. Please do not fall for these.

A worthy enough coin or token should have its own use case for a problem we are facing in day to day life. Anything other than this must be just a speculative asset which may get dumped at any time. So, better stay away from this coins/tokens. Devs in this case are trying to lure investors by decreasing the circulating number of coins which honestly sound like a immature idea in my opinion.

Moreover, I like to suggest you to go for only highly established coins/tokens rather than looking for any new arrivals. New coins may get you big profits at the same time it will be having more risk compared to what we usually having with bitcoin and other few summers coins/tokens based investments.

[RabbiTANK]

Deflationary tokens in crypto space today are the right definition of shitcoins, honestly they do nothing than burning tokens over and over, this is what creates fake hypes for these tokens and to my surprise people are buying, many people still dont know what real use case is all about in crypto space

[Jogmania]

Moreover, I like to suggest you to go for only highly established coins/tokens rather than looking for any new arrivals. New coins may get you big profits at the same time it will be having more risk compared to what we usually having with bitcoin and other few summers coins/tokens based investments.

No pain no gain. Those who took risk of investing in bitcoin back in 2009 are called whales these days. I am not insisting you to invest in this coin but don't call a project a scam only because it's new and has a new idea.

[Gayong88]

Tokens are created as a means of payment (replacing fiat money) to buy goods and services from both shops, online retailers, and other merchants normally divided into three token categories: currency, utility, or investment.

If the token occurs deflation is possible to be destroyed and ended at a time because of the reference to the benefit value and usefulness.

[Novatech8]

10 years to this time many new coins the public hate because of scam will become big, and the lucky ones you gather them right now will surely become the future whales, this is why I don't say bad things about new coins, you can never know what will happen in future but deflation tokens aren't just good enough, burns keeps happening to increase nothing but value, this isn't a real use case

[Midy]

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 ?

Maybe the team has a separate goal that we never knew, but so far I haven't found a deflation token where coins are destroyed every time a transaction is made, so if I may know what is that token?

I'm also the same as you think because each team has other goals that we don't know about the transaction system and the OP has to share the name of the token so we can find more information

[Jogmania]

10 years to this time many new coins the public hate because of scam will become big, and the lucky ones you gather them right now will surely become the future whales, this is why I don't say bad things about new coins, you can never know what will happen in future but deflation tokens aren't just good enough, burns keeps happening to increase nothing but value, this isn't a real use case

That's exactly what I am saying. Every new coin was called scammed in the start including BTC. But those who seize the opportunity to invest early in the coin are the real winners. To me deflationary tokens like https://www.boomtoken.io/ look very legitimate, maybe some people don't like the idea but for me it's a good choice for investment.

[Chuky92]

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 ?

There used to be a time when some people care so much about a project with a reasonable token supply because they believed there is a possibility of touching a good price which is why during that time, once there is token burn there will be an increase in price caused by hype but nowadays everything has changed. Nowadays we have come to understand that what matters is use case, so whether a coin supply is reduced or not, it doesn't matter if the project have nothing to offer. Lastly the purpose of creating such coins is to constantly reduced its supply which of course is meant to make it valuable but that's not the case atimes. Also, investing in those coins depends on what the team is bringing to the crypto space, if it's worth it or not; that is to say, the working products and the type of team will determine if it's good for investing.

[Deeshawn]

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.

[KaratX]

Newbies forget about deflationary tokens, I haven't seen good one since BOMB Token era, that's the only deflation token that manages to keeps good value till date, the rest are already struggling to keep up, why? They have no good use than offering deflation features only, so tell me why would anyone invest in such coins?

[Jogmania]

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 ?

There used to be a time when some people care so much about a project with a reasonable token supply because they believed there is a possibility of touching a good price which is why during that time, once there is token burn there will be an increase in price caused by hype but nowadays everything has changed. Nowadays we have come to understand that what matters is use case, so whether a coin supply is reduced or not, it doesn't matter if the project have nothing to offer. Lastly the purpose of creating such coins is to constantly reduced its supply which of course is meant to make it valuable but that's not the case atimes. Also, investing in those coins depends on what the team is bringing to the crypto space, if it's worth it or not; that is to say, the working products and the type of team will determine if it's good for investing.

In my view reduction in the total number of coins in circulation is a use-case in itself. The idea is new that's why many are raising questions about this. Those who believe in diverse portfolio will defiantly leave some space for this coin.

[CashbackLover]

I like deflation in tokens and coins but I don't like how developers handled the feature, I believe if this feature get into the right hands they will create something beautiful out of it, many deflation tokens and coins have no other usefulness, it's just as if they are selling the deflation feature to investors only, Zero Usefulness 100%