Why is burning coins good

[indo1]

The burning of coins aims to make the assets of a project increasingly scarce. Usually because the initial total supply is too much of its use in the ecosystem then the best solution is to burn some of the total supply. Burning is very proven since long ago event burn becomes an event that is very preferred by investors and traders.

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[vasu091254]

Always a decrease in total supply increases the value of any coin. This is the general rule. And if those people destroy some of them, the direct response will cost someone. So when a good project destroys its own high value, its value is seen to increase dramatically. This means that when everyone destroys, their value increases. The ritual of destruction can be considered good.

[velive08]

The intention of the Burning that is carried out seems to reduce the supply of Crypto, by burning the coins will decrease in circulation, resulting in an increase in prices in the future, meaning that with the reduction of coins due to burning, it will affect the growth of its value for the better. this is the purpose of doing it.

This strategy is also very attractive to investors, however, there are some projects that do not burn their coins and yet investors are still investing. it means, the quality of the project does not base on burning its supply only, it's more on how the team will develop the project to improve, which means, we have to be careful in choosing an investment, don't invest right away if we read the words "burning of supply/coins" as it doesn't right away tells a pump of price.

yes it is true, not all coins that are burned will increase the price, for example GOMA FINANCE, some time ago I was interested in buying it because there was an announcement in the Goma telgaram group that they would burn 85% of their tokens from the supply amount. Until now, Goma Finance has not had any price increase after they burned it. sometimes strategies like this can't be trusted too

[Kadal Ijo]

The amount of stock that is too much is suspected to be used to get maximum profit, the burning technique has proven to be effective in convincing holders so that they don't panic when they see the price drop, they will patiently wait because the dump that happened was not because of the devs. but market facts.

[Valak]

Burn coins permanently out of circulation, then it can increase the value of the remaining coins that are still in circulation. As people's needs increase, the supply of coins is limited so the price offered can increase to get the coins.

[Uang_kartal]

We know that the Burning process actually removes tokens permanently. It's not too bad if the basic/project is clear, even though it's done outside the developer's policy to withdraw to a special account, so that deflation occurs

this supports the equation even more than its position to go higher. this may be a strategy. i'm not so sure about all the hype because a price that goes up too fast will reverse to form a balanced REVERSAL. this doesn't have to happen from a bearish condition

[MFahad]

Burning is now one of the Crucial parts among all coins. I researched many coins price increase so high When burning news come out through twitter. Specially Binance and top coins price goes high with news. With burning all extra coins fund Removed permanently. Its used for decreasing the total supply.
All meme coins use this burn system to make hype in market and many coin Are success due to big burning mechanism.

[Kunnu]

This is not necessary that the price will boost after burning a certain amount of tokens/coins by project developers like some fellow members said here it's all just a market strategy to create hype about the coin and I am totally agree with them although there are some quality coins for example bnb which is leaving a strong impact after burning a certain amount quarterly that's because the bnb developers have explained it with reasonable reasons long time ago but these days many developers want to burn coin without reasons because they think it will boost the price, this is absolutely a misunderstanding of them.

[super bako]

This is not necessary that the price will boost after burning a certain amount of tokens/coins by project developers like some fellow members said here it's all just a market strategy to create hype about the coin and I am totally agree with them although there are some quality coins for example bnb which is leaving a strong impact after burning a certain amount quarterly that's because the bnb developers have explained it with reasonable reasons long time ago but these days many developers want to burn coin without reasons because they think it will boost the price, this is absolutely a misunderstanding of them.

Every crypto asset certainly has different characteristics and uses, friends, therefore cryptocurrencies recognize coin categorization based on their use value. However, it should be understood that crypto is an investment that offers high returns and risks. By understanding the type of investment that is chosen properly, starting from the benefits of its function, advantages to disadvantages, then you can carry out any investment more safely and comfortably.

[kanayaTabitha]

This is not necessary that the price will boost after burning a certain amount of tokens/coins by project developers like some fellow members said here it's all just a market strategy to create hype about the coin and I am totally agree with them although there are some quality coins for example bnb which is leaving a strong impact after burning a certain amount quarterly that's because the bnb developers have explained it with reasonable reasons long time ago but these days many developers want to burn coin without reasons because they think it will boost the price, this is absolutely a misunderstanding of them.

Yes mostly new project coins always burn their coins for price increasing, and the investors are happy with that. Burning without purpose and only for sudden price increase is really have a bad impact for the project in the long run. These kind of projects are mostly just a money game projects that the investors want to make a quick profit as well as the owner of the project.

[V-t.Ester]

When digital coins are burning they are completely removed from circulation. This is done to ensure the scarcity/liquidity of the coin. Thus, the number of coins decreases but the demand for the coin is still high, so the price increases. We can see how this is done correctly on the example of BNB, which is in demand by all Binance users.  I've also read some years ago that  BTC investors were specifically sending BTC on non valid addresses. So they were burning BTC. But now, in many cases, the burning is being used as a kind of PR for a coin/token.

[fvb]

Burning is now one of the Crucial parts among all coins. I researched many coins price increase so high When burning news come out through twitter. Specially Binance and top coins price goes high with news. With burning all extra coins fund Removed permanently. Its used for decreasing the total supply.
All meme coins use this burn system to make hype in market and many coin Are success due to big burning mechanism.

For example, one of these projects decided to burn tokens immediately and not later. Based on their research, they concluded that in this way the value will increase immediately. I read the documentation and it will be interesting to see whether this solution is correct or not.

[Sayeds56]

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

In deed burning is a good practice from marketing point of view to increase price by reducing  supply of tokens/coins to attract more investment but recently we have witnessed lot of new Meme projects being launched with huge supply ( Trillions of tokens) to attract buyers at extremely low price. These meme coins have no use case but still newbies in crypto buy them with idea to get rich quick. The management of these projects  later announce burning mechanism as a strategy tool to refrain investors from selling. This is abuse of burning mechanism.

[molsewid]

In deed burning is a good practice from marketing point of view to increase price by reducing  supply of tokens/coins to attract more investment but recently we have witnessed lot of new Meme projects being launched with huge supply ( Trillions of tokens) to attract buyers at extremely low price. These meme coins have no use case but still newbies in crypto buy them with idea to get rich quick. The management of these projects  later announce burning mechanism as a strategy tool to refrain investors from selling. This is abuse of burning mechanism.

Burning coins is simply an application of a Law of supply and demand, the more token or coin supply circulating the more the value of coin becomes lesser. I don't know the other reason for burning tokens other than the need to sustain the current market value so that it will not drop to a minimum level but to reach another ATH. So far one of the examples I can relate to this is the SLP, the in-game token minted on the famous NFT game Axie Infinity, this game has a lot of players which reach a million players every day and the minted token every day is also reached millions but the case is there is no other effective burning strategy other than breeding fee, so the more the token circulating the lesser the value of the token.

[dansus021]

like the on the first page does. the burn coin is become marketing right now some memcoin burn their coin to vitalik address, but not all the coin to be burned worth 500hundred token of meme maybe worth of couple of buck with supply of billion and some of it burn via dev address its mean the token itself never enter the circulation never be traded right

[Kkhair]

actually the purpose of this burning is so that coins are limited in the market, of course the circulating supply will also decrease and be limited so that it can reduce the potential for inflation.

This burning returns to the mechanism of related crypto companies in order to maintain price stability, among them there are those who burn 15 times per 3 months like Binance did so that the price of the coins jumps up to a dozen times...

Actually, there are many reasons to burn coins/tokens, and that is in accordance with the motivation of the project developer. whose end goal is as I mentioned him above.

[evichi]

Burning, in my opinion is done for a number of reasons : (1) When a new coin is at its early stage ,  after the sale/pre-sale,  the coins that are not purchased as well as the coins not mapped out for a particular purpose are burned so as to gain trust from the public as well as improve the value of the coin. By doing this the public will trust that the coin will not be dumped 8n the future.
(2) People will view the coin as viable and worthwhile to purchase because the project team is creating scarcity. (3) The value of the coin could appreciate following the law of supply and demand

Burning of coins/tokens, in my opinion, can be performed when there is need for it  - if the team hopes that such activity can improve the coin/token adoption,purchase and popularity.

[carrigan]

By permanently removing coins from circulation, it increases the value of the remaining coins in circulation. Because people's needs are increasing, while the supply of coins is limited so the price offered can increase to get these coins. Coin burning carried out by developers is of course to increase and stabilize the valuation of coins and tokens. These coins are used to pay service fees known as gas fees. Imagine if the number of coins in circulation is getting rarer, while the need is increasing, then people will scramble to get these coins at a higher price offer.

[aseprebel]

One of the main reasons coin burning has gained popularity recently is that it allows cryptocurrencies to begin at low prices and then artificially enhance their value after people invest. Because of the low price, a new cryptocurrency might begin with 1 trillion tokens for a fraction of a cent and attract investors. Later, the creators can raise the price by burning billions of tokens.

[manok jepang]

Coin burning aims to reduce their supply on the market, with a reduced and limited number of tokens making the token price easier to pump up, and the purpose of burning is a mechanism to maintain price stability, as ethereum and binance have done in recent months, the price has skyrocketed tremendously. maybe this mechanism will be carried out by other project developers to improve the quality and quantity of their projects,