Why is burning coins good

[vermigerous]

As many have said that burning a coin could be good for a project, it can create an upward pull or increasing effect for the price of that coin in the crypto market since aome of it burned or lessen it's circulating supply. Buring coin projects can be a good for a long term investments, burning coins could also incentivizing traders and investors, also it could maintain the price peg of stable coins.

[19Nov16]

By burning it will reduce the stock and of course will make the price increase, this is a good strategy to convince users and proven effective, although burning but it takes a lot of money to burn, like I've done in some tokens but after burning then get a bonus from devs.

[fuguebtc]

Burning coins are used as an advertising campaign adopted by most projects. IMO, burning coins will help that coin avoid inflation, the coin will be more stable and sustainable after each coin burn cycle takes place. In addition, the burning of coins will cause the supply to be limited and the demand for holdings to increase causing the coin value to increase.

[Gayong88]

My view is about simple burning for either NWC coins/tokens or others. If the demand is increasing but the supply of coins/tokens is getting limited, you can imagine what will happen in the future and this close example is here:  https://cryptopotato.com/binance-coin-approaches-ath-as-14th-bnb-burn-to-happen-in -48-hours/ I haven't felt it yet, but when it's close to 100 million coins, it's just the same with NWC.

[airdata]

Burning is a Very effective system in crypto market, Developer always burned their coin when they understand that Their coin always will undervalued for their huge supply, then they decided about burning, and also have another way for token burning. 

[Al Qiyamah]

Actually, the benefits of burning tokens/coins are good because they can keep prices stable and more valuable. But sometimes there are also projects that do token burning but don't have much effect on the token itself, it could happen because there are still a lot of circulating tokens, meaning that it doesn't make the token feel scarce as the main purpose of burning tokens is to remove the token completely from circulation and can't be used anymore.

[Pejoh Asu]

Burning is a Very effective system in crypto market, Developer always burned their coin when they understand that Their coin always will undervalued for their huge supply, then they decided about burning, and also have another way for token burning. 

This is a technique to reduce stock so that the price will go up, usually this is for coins or tokens that have a large amount, one project that I know is actively burning 1 billion per day is Goma Finance is a project that has burned more than 88% of the stock and this is effective for make investors more trust with devs long term plans.

[Rahman11]

The practice of Coin Burning is common in the crypto industry and is quite simple to implement. Many projects use coin burning to preserve their assets supply and demand ratio. Reducing the total volume of coins, theoretically, leads to their value increase, provided that current demand indicators are maintained.

[Fivestar4everMVP]

Well, yes, burning is good, and it does have some good effect in the price of the coin immediately or later in the future, as it reduces inflation and at the same time increases scarcity.
But like a member here already said, some project developers, most especially in the meme coin trend, use the act of burning to fool many ignorant investors into investing or buying into a the project when normally, they shouldnt have, like the scenario a member shared here where a team launch a project with 1 trillion tokens, and burn 500 billion tokens, causing noobs to start buying into the project when this kind of burn isnt really a burn, I've come across this kind of projects severally, and this doesn't say good about such a project at all.

[AwoCorporation]

The main purposes of burning of coin/token is to make sure that its current market price is stable and sustainable. In this way as well it can create a good pumping event of that certain token/coin that is being burned.

This kind of coin burning is very necessary for coins that have a lot of inventory, because by reducing the existing supply, it is hoped that the coin will not experience inflation and can stabilize the value of a coin, and this is also usually used as a powerful marketing strategy to pump up the value of coins that are sold. burned.

[herurist]

burning some coins for a project is indeed a pretty good thing to do, in addition to increasing the marketability of the burned coins it is also good for pumping coins to be healthier and greener.
because basically a system like this is still the same as the previous systems with the hope that when the supply of goods or coins that are burned is getting less, the price applied will be even more expensive because the increased need is inversely proportional to the scarcity of goods.
but not all projects that stipulate something like this can run well because again, of course, investors see progress in both the whitepaper and roadmap as a reference.
If the progress for the future is good, of course, burning coins will be very useful, but when the progress is not good, burning coins will be useless.

[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.

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.

for now your words are true but of course with the coin burn I think the use will still be there but it would be better if they let go of the coins they hold I think this will be better because indeed with this it is indirectly released the coins they hold then it is not impossible that binance will become more decentralized as you say.

[royalfestus]

How does burning a multichain coin looks like?
will they take a portion from all the chains the project appear on?
Asides the announcement of the burning of unsold token before launch, I try to distance myself from projects with high numbered coins and bad tokenomics. Unnecessary large reserve for team is suspicious

[Coin BTC]

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

There are several ways in the process of burning coins, the ways are varied and determined. Some developers, will use one step burning after the ICO is over to burn unsold coins from circulation.

Then, there are also those who prefer to do it in several stages. Just like binance which does the coin burning process every three months, this burning is part of a commitment to reach 100 million BNB which will later be burned.

[Almasani]

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?

Burning tokens or coins aims to reduce the circulation of tokens on the exchange, so that price increases can be done easily, but if they can't recruit new investors who will pump up the price of coins, then burning coins has no effect on the price, in which case it would be nice if they stake. Staking can reduce the circulation of tokens on the exchange, and profits are also earned by token holders, the total supply is fixed.

[Ararbermas]

Burning is a good way to get more attention from investors nowadays, because its like a big event wherein there's always a good improvement afterwards. So its not surprising some developers trying to do the same way when they noticed that the project didn't improve more or there are some factors that trying to make their project stagnant. It's always the best way for them which is very effective.

[the ghabbar]

Burning is a good way to get more attention from investors nowadays, because its like a big event wherein there's always a good improvement afterwards. So its not surprising some developers trying to do the same way when they noticed that the project didn't improve more or there are some factors that trying to make their project stagnant. It's always the best way for them which is very effective.

That is, the current burning is more of a diversion to investors, because after the burning there will be good improvements afterwards, whether the construction of this kind of project can be successful on a general scale, considering that many projects that are present are also doing the same thing, and maybe they have other ways to make the project look effective, it doesn't just depend on the burning session, I think if you stick to one point, then everything else will be ignored.

[lizarder]

There are several ways in the process of burning coins, the ways are varied and determined. Some developers, will use one step burning after the ICO is over to remove unsold coins from circulation.

Then, there are also those who prefer to do it in several stages. Just like binance which does the coin burning process every three months, this burning is part of a commitment to reach 100 million BNB which will later be burned.

this is more rational than burning when the coin is not developing, although burning is considered important for the development of coins in the future, the coin burning process is based on a study or analysis of the pre-sale circulation, usually they do it when the ICO has been completed and delete unsold coins, or as you say using the burning process every three months after going through the existing mechanism.

[adiebitsler]

this is more rational than burning when the coin is not developing, although burning is considered important for the development of coins in the future, the coin burning process is based on a study or analysis of the pre-sale circulation, usually they do it when the ICO has been completed and delete unsold coins, or as you say using the burning process every three months after going through the existing mechanism.

Regardless of that and what you said, each team will also see how the interest in their coins is every year, because if the demand continues to grow, then the coin burning will also not be carried out immediately even though it has been set in the plan in order to maintain the basic value of their coins.

[mksundip]

I don't understand why projects refer to these methods in order to achieve stability or increase the value of their tokens/coins. In the first place, if the project is viable, the coin/token will not suffer any potential loss of value due to its supply. Hence the need for burning would not be there since the coin is doing well for itself. This method is so overused in the current altcoin market that people think that by purposely removing coins in circulation, the coin's value should rise. On paper and in theory, that should happen, but what if the coin doesn't really offer something new on the table?

I see that burning coins is just an effort to attract the public's attention so that they are interested in investing in these coins. although there is no guarantee that the coin will be successful or anything but in my opinion it is only for a marketing strategy and in the future it will not have any effect