Why is burning coins good

[wheelz1200]

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?

It's a scheme.  They are implying your coins are worth more automatically but it's not true it still relys on demand which they can generate.  People think burn half the coins and it will be worth double.  But if you burn half the coins in something that has little to no value anyway does it really mean anything?  The worst are the projects that start by just burning coins. Lol.  Rediculous.

[abralzain17]

The purpose of burning tokens carried out by developers is to reduce supply circulating in the market, with a decrease in their tokens, it is very possible for the token price to be more valuable and have the opportunity to have the best price on the market. thus the tokens that are burned will increase the number of fans.

[sammy21]

Coin burning like this has been happening for a long time, many have experienced success and some have not had any effect, because actually burning a coin will only function properly if there is an increase in demand for the coin which is supported by a reduced supply of coins in circulation, increasing scarcity. and the increased demand will increase the price of the coin.

[Abiky]

It's a scheme.  They are implying your coins are worth more automatically but it's not true it still relys on demand which they can generate.  People think burn half the coins and it will be worth double.  But if you burn half the coins in something that has little to no value anyway does it really mean anything?  The worst are the projects that start by just burning coins. Lol.  Rediculous.

Exactly. Just because coins are burned, doesn't mean they're going to increase in price. Demand is what matters most, and without it, crypto projects will be doomed to failure. I've seen many scarce cryptocurrencies fail in the long run because of the lack of demand. Developers should focus on increasing mainstream adoption on their projects than simply changing monetary policy. BNB is one of the few cryptocurrencies on the market which constantly burns its supply, and provides real use cases to the mainstream world. You just have to choose the "good apples" from the "bad ones". As long as you choose your coins wisely, you'll have nothing to worry about. Just my opinion

[WannaCry]

I think the burning of coins has a good and bad side. If the coins have a limited supply then it's quite good and "they" say that it will increase the price but for the coins/ token that are billions of supply it's just hype especially for those new projects.

[aruldaroy]

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.

The ease of making coins and tokens certainly makes anyone able to make coins and tokens with the amount he likes, even now when they see developments they are by increasing the amount or stock, with the burning technique of course we can get a better price, because most of the prices of coins or tokens new very cheap.

Everything is also not easy, sir, all need the process too.
There must be a risk too, what if something bad happens with the new token or coin situation.?
What's more, if the coin or token is still new, of course investors will also think long before choosing exceptions such as BTC, ETH, BNB.

[akar87]

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.

Simply put, the burning of coins can create a shortage in the supply of these coins and by using the burning method of the project development team, they hope that the coin price will be more valuable and can maintain the stability of the coin price, currently the burning feature has become one of the features that are often used by developers who aim to deflation the value of the coin.

[dEjAvOU]

Burning proves that devs. want to seriously increase the price and certainly prove that the devs. not making dumps by selling cheap, burning is certainly a good thing and makes investors believe that coins are getting scarcer and demand will continue to increase so the price will also skyrocket.

[nurulhmani1280wat]

when they burn coins, one of them can affect many investors who are interested in their platform to trade, less supply and higher opportunities just to upgrade coins, especially if we only talk about good projects, for example with Binance, they continue to burn and looks good .

I believe that every coin/token burning will create a new sensation and provide enormous opportunities.

[Orange89]

The Reason Behind Coin Burning may be because of Increase Value of Coins Bitcoin had a Proof_Of_Work (POW) where Miners can burn bitcoinBTC, for example, to earn another coin. Similarly, there is a Proof_Of_Burn {POB) mechanism Whereas such Coins following POB consensus have to burn token for actively managing on the blockchain
A SHORT ANSWER WILL BE
IT DEPENDS.
if a coin is Following POB algorithm then it had burning mechanism at fixed times. This is a good to the token holders the token they are holding is definetly going on the right direction but on the other hand
If a coin burning only happening to increase token market value only than it's not good

[lvsca]

It greatly affects the price.  The community is very happy with the burning event because it makes the assets of the project have less supply and are getting more expensive, without reducing the amount of their investors' assets. This means that it is an instant pump. This technique is also very effective for creating hype easily. The project will soon rise again after burning.

[jpaul]

In theory when the supply of coins in the market is high the price decreases. This decrease on the price will not recover unless the supply in the market will be reduced. And that burning seems to be a better option being implemented to reduce the supply of the coins in the market circulation. It gives us impression then that when the supply is reduced through burning the price of the coins becomes higher. 

[arbifahrozy]

Because burning is a big thing for any project if any project have low supply then it's sure price can goes high and also it's a sign of good project burning event pump too much any project

[Rocky993]

Even if the burning strategy doesn't work on all the coins in the market.  Projects on which Burning Strategy works very well tend to increase their price over time and give good returns to future investors.  It can be said that good burning project coin is good.

[gurunanakji777]

Many projects are doing this to grow the value of their coins even traders or investors also take interest in such coins where dev plan to burn their coins at regular intervals. The logic behind burning I think is like a trader if the supply is getting reduced the value of the coin will increase basically I would say dev creates hype by announcing burning the coins so they can attract more investors and grow the value of their coins. At present many new projects are doing this but this is not the way to the success of any project. Yes, burning the coins affect the market value of the coin.

[rahmad2nd]

Many time burning coin not giving any impact and price still stable, looking with Cake coin as monthly event make burning coin but price still stable and not increasing up above 20$. Right now cake stuck above $13 and looks keep existing almost two months after bitcoin crash and right now still looks stable and not raise up again to higher price, every month developer always make burning with cake coin and I think have bad side with developer keep selling their assets during burning happen.

[livingfree]

Because burning is a big thing for any project if any project have low supply then it's sure price can goes high and also it's a sign of good project burning event pump too much any project

Not so sure.

It can temporarily price increase but still, there's no guarantee that it will. It's always been an event that every investor is waiting for like any other news.

But remember that it's not giving assurance to every investor and that's the same with halving in altcoins.

[nelson4lov]

Burning proves that devs. want to seriously increase the price and certainly prove that the devs. not making dumps by selling cheap, burning is certainly a good thing and makes investors believe that coins are getting scarcer and demand will continue to increase so the price will also skyrocket.

Token burning mechanism doesn't necessarily prove that the devs are good or legitimate (non-scammy). The major benefit is that when there's a decrease in the token supply, there's a perception that being deflationary is good since it means > less supply > less selling pressure > potential price growth but this isn't always the case except the team is burning a very significant amount similar to how Binance conduct theirs. It also increases the confidence of investors, token holders and community.

[Lanatsa]

Burning proves that devs. want to seriously increase the price and certainly prove that the devs. not making dumps by selling cheap, burning is certainly a good thing and makes investors believe that coins are getting scarcer and demand will continue to increase so the price will also skyrocket.

Token burning mechanism doesn't necessarily prove that the devs are good or legitimate (non-scammy). The major benefit is that when there's a decrease in the token supply, there's a perception that being deflationary is good since it means > less supply > less selling pressure > potential price growth but this isn't always the case except the team is burning a very significant amount similar to how Binance conduct theirs. It also increases the confidence of investors, token holders and community.

Some people do really get the wrong idea about burning on which they do really get boost up and tend to believe that the project team is really serious on dealing or on making updates with the project.

It is true that this isn't a solid indication that they are legit because burning mechanics or something like this doesn't mean that the coin is legit.Yes, it could lessen the supply but it do still all matters with

the demand itself and this is something that cant really be controlled because it all matters with projects potential and real use case or simply with recognition.

[nelson4lov]

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Some people do really get the wrong idea about burning on which they do really get boost up and tend to believe that the project team is really serious on dealing or on making updates with the project.

It is true that this isn't a solid indication that they are legit because burning mechanics or something like this doesn't mean that the coin is legit.Yes, it could lessen the supply but it do still all matters with

the demand itself and this is something that cant really be controlled because it all matters with projects potential and real use case or simply with recognition.

That's actually true. Token burn doesn't necessarily do anything to demand unless there's demand already on ground and such news just act as a catalyst that aids token growth because over the course of the year, I've witnessed projects that did token burn that did little to no effect to the token value or made the project seem bullish. What I like to see is that the project already has momentum and token burn event will just boost it up even more.