Burning of cryptocurrency

[Dexion]

Burning of cryptocurrency is the strategy used to make a certain scarce in the market and it also reduces the total supply of coin and total circulating supply of coins while increase the chance of the coin gaining more increase in price but the token thats burned are sent to address will never be use by anyone.

But this burning also has a risk, if the market demand does not increase, while the circulating stock decreases, this will cause the coin to sink.

[paxmao]

Nope, that address does not belong to anyone and as you own thread title suggests, its purpose is to send the tokens to a place in hell were they burn for eternity never to be seen or moved again. So, yep, that´s just burnt tokens or even tokens that people got angry at and sent there sometimes this happens with tokens that are airdropped to any address and it basically serves as a trash can.

[coinswebid]

Hello guys,
I have recently come to know about cryptocurrency. It is amazing, how these digital currency eill revolutionise this world.
Since, I am following alot of coins. I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.
And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

burning events is good for any altcoins, because with burning events the supply will decrease mate, usually when the supply decrease the demands will increase
and i believe no one can access this 0x000...dead wallet address

[motun01]

Based on the laws of demand and supply when the supply of a particular asset or commodity reduces, with a stable or increased demand, then the value of the asset or commodity increases.
Similarly with cryptocurrencies especially Altcoins, token burns are done in order to decrease the total circulating supply of the cryptocurrency in order to increase scarcity which will increase the value of the cryptocurrency.

[pelumi20]

The burning of tokens is simply a deflationary model in which the project team sends a certain percentage of their tokens to that address (0x000000000000000000000000000000000000) in order to reduce the total supply. Reduction of the total supply will help create scarcity for the token and thereby increase the demand for it. And no, the address belongs to nobody.

[kram31]

Burning a coins the first thing will come up into the majority people here in the forum is that the coins will definitely increase its
price value in the market sooner or later. But not all coins burning I think increases their price, because I've seen this several times here
I just forgot what coin is that, just all I know in accordance to what I had mentioned.

[judas]

Burning some cryptos (e.g. BNB) means that the supply will decrease which is limited normally. And after it, that cryptocurrency will be much more valuable as its supply will be lower than before. And the price will be likely to increase too.

[CaVO32]

Burning some cryptos (e.g. BNB) means that the supply will decrease which is limited normally. And after it, that cryptocurrency will be much more valuable as its supply will be lower than before. And the price will be likely to increase too.

This may be true to BNB but for other alts, even if they have burning program, they won't go that far. It needs valid reason why it will become a valuable one, not only because of this burning activity. If the team is actively developing their project and looking for use cases while doing this burning activity, then, the increase of value may happen. But if not, burning will only be futile.

[Pelana vreo]

Hello guys,
I have recently come to know about cryptocurrency. It is amazing, how these digital currency eill revolutionise this world.
Since, I am following alot of coins. I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.
And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

It looks like the trend of burning coins to reduce the supply amount continues to be carried out by developers to increase the price of tokens in circulation, there are a lot of default wallet addresses I've seen like (0x .... 1), (0x .... 2) nobody has that private key or wallet and usually coins are burned for other reasons for example a developer will burn a token that doesn't sold out when the ICO was run

[Cherylstar86]

Hello guys,
I have recently come to know about cryptocurrency. It is amazing, how these digital currency eill revolutionise this world.
Since, I am following alot of coins. I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.
And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

Certainly that address have been trashed and not active anymore due to token burning, and basically it happens when token supply was reduced. Though the developer of a cryptocurrency project did some token supply reduction, that doesn't you're about to take profit on their project. Some tokens after burning has no further progress, and worst they've been left away by their supports, then their token became shitcoins in the end.

[Godwinpaul]

When I see a project developer talk about burning of the cryptocurrency, I understand he's about to reduce the total number of tokens that was created and that reduces the amount in circulation. Most times cryptocurrency are burnt Inorder to increase the value of the tokens in circulation as the value is determined by the market capitalisation divided by the amount in circulation.

[NorvsGanda]

Newbie question. Those tokens that burned by the team has a market value right? So if they will burned those tokens, are they also burned their money? Because those tokens has value and included on the over-all coin circulating supply. So how's the team get their benefits from burning their tokens?

[lalabotax]

Generally, if a coin experienxea burning token, the price will be higher after burning
 Moreover they know that the supply is decreasing. So the chance together will tell us about all increas probablity for the price of the token or coin itself

[jinxing]

everyone here believes that coin burning is done so that coins can be valuable because it reduces the amount of available supply, but not all developers can burn the coins they have launched because there is no point in burning coins by a failed project, especially if the coins are that  they have is simply junk coins which have no value at all

[sapnu]

The statement "burning of cryptocurrency" means stabilizing a certain coin in order to avoid too much inflation and increase the demand resulting to a higher value. It is usually done by the coin maker wherein they will send it to a default address and as it gets transacted to that address, the coins will automatically burn or cease to exist. It is more likely reducing the total coins being exclusive to investors or traders which will more likely result into a better outcome as time passes by. Since we can also apply the law of demand in supply here in crypto, as the supply falls down there will be higher chance that the demand will increase.

[no-ice-please]

The statement "burning of cryptocurrency" means stabilizing a certain coin in order to avoid too much inflation and increase the demand resulting to a higher value. It is usually done by the coin maker wherein they will send it to a default address and as it gets transacted to that address, the coins will automatically burn or cease to exist. It is more likely reducing the total coins being exclusive to investors or traders which will more likely result into a better outcome as time passes by. Since we can also apply the law of demand in supply here in crypto, as the supply falls down there will be higher chance that the demand will increase.

The risk is that any coin operating with crptocurrency burns is more prone to be declared a security unless the network is sufficiently big like ETH. Becoming qualified as a security can cause lots of problems to the teams behind them as well as to token or coin holders.

[ANKIT007]

Coin burn-in cryptocurrencies mean sending some of the coins of a native cryptocurrency or some other currency to a public address from which those particular coins can never be spent because the private keys of such an address are unobtainable.

[Atang Sulaeman]

burning coins or reducing the number of coins in circulation, the fewer coins there will increase the value of these coins. thus the coin price remains stable with a reduced supply.

[no-ice-please]

burning coins or reducing the number of coins in circulation, the fewer coins there will increase the value of these coins. thus the coin price remains stable with a reduced supply.

If you reduce the supply it can also give a positive signal to the market and even increase the price. It also depends on how the burning happens because if the tokens ar bought back from the market it also increases the price.

[Jackl87]

Hello guys,
I have recently come to know about cryptocurrency. It is amazing, how these digital currency eill revolutionise this world.
Since, I am following alot of coins. I have listen about burning of cryptocurrency. I am a little bit confused what does burning mean, I will be thankful if anybody explain this.
And I have seen major percentage of coins hold by this address 0x000000000000000000000000000000000000dead.
To whom this address belong? Is there anyone have access of this address ?

Burning coins means that the coins or tokens will be sent to a burn address like the one you have metioned in your post. The important thing is that no one has the private key to this addresses which means once the tokens are sent to one of those addresses then the tokens are destroyed or "burned" and there is no way to ever get them back which decreases the circulating supply of the token and therefore increases the value of the remaining tokens. So normally it is a good thing if a project has a burning mechanism included in his tokenomics as it is usually very benifitial for every long time holder of that coin.