Why is burning coins good

[bahagia93]

originally this practice was used to decrease the quantity of existing altcoins and therefore maintain or raise its price, value but currently i do not know how useful this method is given the continuous unpredictable fluctuations of all markets

A little understanding from me for you, which is that every coin that uses this method is only to reduce the supply to make it easier for the team to manage when many fans are attracted to it, because without a lot of enthusiasts the value will remain the same and will not experience any increase.

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[Kodok Bencot]

Of course burning is a great way, proving that devs. not greedy by selling to the market, burning makes investor confidence increase because coins will decrease in stock and this will have an impact on prices that will skyrocket. many successful projects with burning tokens.

[ansarose1]

For me, burning is good both or investors and holders due to the reason that the circulating supply may decrease and by that activity the coin that is burned could possibly increase it's price since some of it's supply is burned. But some also doesn't have the effect whether the coin is burned or not, it only remains the same price as it is.

[adiebitsler]

Of course burning is a great way, proving that devs. not greedy by selling to the market, burning makes investor confidence increase because coins will decrease in stock and this will have an impact on prices that will skyrocket. many successful projects with burning tokens.

Not all successful projects have implemented burning of their tokens or coins, there are also those that do not burn but they are still as successful as others, and for BNB which has been trusted by many investors from the past until now, it is simply not because burning, but because the BNB Exchange is very well known and also provides many useful services to its users.

[Rocky993]

Coinmarketcap Burning a coin or token depends on the extra supply and if that supply is too much and the team plans in advance that the price of that token or coin will be increased in the market through Bernie in the future to replace the project as stronger in the market.  business strategy.  In this case, the investor and everyone associated with it sees the profit face.

[gwdf1]

What do you think about burning coins? Does this really affect the market value of the coins?

I know that when burning tokens, developers decrease the supply. Consequently, the lower supply is, the higher price will be if demand stays the same. There is a similar situation on a stock market where buyback of shares means that the price will go up because of decreasing of a supply. So I think that price usually pump when there is news about burning of tokens.

[AwoCorporation]

The practice of combustion coins or tokens is indeed a problem, and it is true that it has an effect on an increase in coins from the result of the reduced supply of tokens or con who burns, but there are several things that need to be known that the combustion of coins that occur does not necapant instantly increase value From these coins, there are still other factors that must be fulfilled so that coins combustion becomes truly efficient, namely in terms of marketing and the use of the benefits of the coin itself, because of the benefits that can be felt by investors or fans, the increase that occurs will only be temporary.

[terrorJR]

simply by burning this coin will make the coin become less and more rare.
when we talk about an economic system that deals with scarce goods, it will automatically make these goods more expensive than before because of the scarcity.
as well as in coins because as it gets rarer and less and less in the auto supply the coins will be more expensive in price.
but maybe this coin burning only applies to coins that are fundamentally good like with binance with its bnb and not all coins that are burned will be better.

[Ashli1989]

Currently there have been many projects on the crypto platform that have announced the burning of coins but they are very intelligently planned.The common man can not understand.They think that millions of dollars will be wasted,but if we look at this, this is a marketing ploy, the burning of coins is due to the will of the creator of cryptocurrency.This type of burning is just one part of marketing Strategy.For example, the announcement of the burning of any coin in a cryptocurrency can lead to a significant increase in its value.But I wonder why any project really needs to use this method?  In fact, the process of revolt cannot be seen to increase its value if desired.

[livingfree]

It is actually a good thing to burn tokens.

But a lot of projects have found it as a marketing ploy just to hype their projects. Unlike those projects that have burning part of their road map, they don't have to play it as a marketing.

Yh, it is a system that I think now many projects implement because it 'sounds cool' and its real value thus is starting to get lost.

Though for serious projects like ETH or BNB token burning still means something and can lead to token value inflation as the number of tokens in circulation are reduced.

I suppose it depends on the projects you look at and whether their idea of a token burn has been on their roadmap since inception - obviously this doesn't apply much to new projects but it is a metric nonetheless.

No doubt with BNB and Ethereum.

Burning is really effective and that's why we're seeing the result of it. Aside from burning tokens as part of marketing and being used by other parts.

I'm now thinking if they'll also use by chance halving as part of their marketing too.

[jostorres]

What do you think about burning coins? Does this really affect the market value of the coins?

I never agree that burning is a good thing because on the first hand, devs got options to create less number of coins or tokens but they add burning as a feature and minting massive amount of circulating supply. In short I mean, devs should not create demand by manually decreasing the supply. Instead of that, devs must work on creating value for their coins or tokens in more progressive way.

Unfortunately major platforms are these days having "burning" feature by default. This must be another thing which are kind of manipulation to lure naive investors. I am out against all such coins/tokens.

[ene1980]

simply by burning this coin will make the coin become less and more rare.
when we talk about an economic system that deals with scarce goods, it will automatically make these goods more expensive than before because of the scarcity.
as well as in coins because as it gets rarer and less and less in the auto supply the coins will be more expensive in price.
but maybe this coin burning only applies to coins that are fundamentally good like with binance with its bnb and not all coins that are burned will be better.

The Binance team holds 40% of the coins which is over 80 million and the next 10% in the hands of seed investors and the rest they sold to the public, now what is the point if they keep on burning the coins and make them valuable. They should release the coins they are holding and try to make the market more decentralized rather than holding majority of the stakes.

[the ghabbar]

Recently, many projects have announced the burning of coins, but not everyone understands what this means.

This is a process by which cryptocurrency miners or developers get rid of a certain amount of tokens by sending them to addresses that are not accessible to anyone. The burning of coins is being implemented not because of the low viability of the project, but rather because of the desire of the creators of cryptocurrencies for great prospects.

Thus, the developers are trying to reduce the total number of available coins, while the created shortage affects the growth of their value.

The burning of coins can talk about the upcoming expansion of the project and a possible increase in its value. For example, after the recent announcement of a collaboration between Polygon and Newscrypto, the latter announced that they decided to burn $ 10M worth of NWC tokens this year. Consequently, in the near future, we can see a significant growth of NWC price on this news. What do you think about burning coins? Does this really affect the market value of the coins?

The project being carried out is not based on achieving the stability of the token value, so that the loss of value due to supply requires burning, although this condition has not actually been carried out, this partek is carried out to reduce the number of existing altcoins, so that it is quite easy for them to increase the price. this is almost done by other coins, but not all of them succeed in the specified target, and I don't really respect and believe in this pattern.

[tvplus006]

...Does this really affect the market value of the coins?

Burning coins necessarily affects the price, but it may not happen immediately, but after a certain period. But a lot depends on what percentage will be burned. If this is a small percentage of the Circulating Supply, then the market may not notice this and, accordingly, the price will not change.

[Eureka_07]

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Does this really affect the market value of the coins?

Yep. Burning does really affects coins' value as the supply is being cut down. Again, it falls under the law of demand and supply. More supply, could lead to lower price and vice versa. However if there's no demand, nothing will happen, probably would lower the price gradually.

[Doell]

good for the product to be able to control the price at the point the team want ,reduce supply to keep it under control making it easier for traders or investors to push prices higher than before and so far this has been very helpful ,we can see together also special in bnb the price has increased even further better

[TomArayaSlaya]

Why does the project need to burn in the first place I see project tagging these burns words and I think to myself Why not just start with lower coins instead Look I dont think burning is not a bad mechanism I just see it been misused in lots of project.. If its necessary like ETH burn Luna burn or cake then by all means burn ahead But shitcoin with shitburn is more like continuation to been shitty Watch out

[Luqman]

Does this really affect the market value of the coins?

It does, it brings impacts to a coin value. There are already many developers burning their coins, then the price of the coins can increase instantly in the market. In theory, burning means decreasing the total supply. It makes the number of coins become less than before. In this situation, the price of the coin can be higher since the number of the coin be more limited than before. You must know the economic principle, right? When the stuff becomes rare, the value to be more expensive.

[Wawa2013]

Does this really affect the market value of the coins?

It does, it brings impacts to a coin value. There are already many developers burning their coins, then the price of the coins can increase instantly in the market. In theory, burning means decreasing the total supply. It makes the number of coins become less than before. In this situation, the price of the coin can be higher since the number of the coin be more limited than before. You must know the economic principle, right? When the stuff becomes rare, the value to be more expensive.

Good projects should indeed have a limited supply and a burning coins plan must be carried out, in order to make the value of the coins increase.
Therefore, usually if there are projects that provide a schedule for burning coins, investors will immediately buy the coins, because usually the price
will rise instantly and this is an opportunity to make a profit. This method of burning coins is done by developers to attract investors, and has proven
to be effective. But it depends on the project too, if shitcoins are planning to burn their coins, it still doesn't make the shitcoins worth buying.
So we as investors still have to do research and analysis to choose coins that are suitable for investment.

[harizen]

What do you think about burning coins? Does this really affect the market value of the coins?

Since most crypto enthusiasts associate and believe burning coins will trigger the price increase of a certain coin, we can conclude that it will affect its market value.

Technically, it should as supply and demand play a big role but in crypto, without hype and popularity, burning coins are not enough to trigger the pump.