Really Burn helps Token in positive way?

[KiranKBS]

Hi,
Some How this Burn Buzz word stuck in my mind and i didn't see practical results so far in any successful token.

For example, Shiba Inu is burning tokens aggressively and is it really helping them?

May be i am noob here and happy to hear from experts!

I believe this topic will be useful for someone too!

[posi]

In theory, that means making the supply less, and when the supply is low but the demand is high, the price of that token will be worth more. But for a token or coin to increase in price, there are many factors, it will not depend solely on the burning of coins.

In my opinion, you should only consider this factor for large projects, projects that have use cases like ETH or BNB, it will be really helpful in helping push the coin price. But when it comes to memes and shitcoins, burning won't work because their value like Doge or Shiba depends on shark manipulation.

[loveselenagomez]

Burns can have a positive impact on crypto tokens by potentially reducing the token's supply, which might increase its scarcity and value in the market. However, the effect depends on various factors and the overall dynamics of the specific token's ecosystem.

[Yogee]

Burning works on the premise that there is actual demand. It's probably not working for a lot of projects because they also have to create or manipulate the demand for the token. They often advertise aggressively by creating hype all over social media and offering new features that may or may not be useful at all. Methods like that are only good for short term.

[dimonstration]

Hi,
Some How this Burn Buzz word stuck in my mind and i didn't see practical results so far in any successful token.

For example, Shiba Inu is burning tokens aggressively and is it really helping them?

May be i am noob here and happy to hear from experts!

I believe this topic will be useful for someone too!

Token burn on Meme coins is a complete a hokum to trick user that the token price will increase by decreasing supply while they set the initial total supply to abunch of tokens.

Token burn is good for tokens that has a real utility to gain profit that will be use to commit buy back on the circulating supply tokens but token burn on meme coin is useless since meme coin doesn’t have any real utility to gain profit aside from the investors money that being use as liquidity for the token.

[Jocuserious]

Burns can have a positive impact on crypto tokens by potentially reducing the token's supply, which might increase its scarcity and value in the market. However, the effect depends on various factors and the overall dynamics of the specific token's ecosystem.

Burns doesn't need to supply a successful project they keep their development process moving and attract investors. If the total amount of tokens of a project is high then i think the burns system will not work. Moreover token reduction of good projects is effectively positive.
Also, many project gona to scam like this system, so that's why you have to be careful and stay away from such project.

[rat4]

I think that burning may have both positive and negative effects depending on the case.

In short, I see aggressive burning as negative, but steady burning as positive.

Many other factors should be counted in too. One unusual factor is that the purpose of burning may be an initial distribution of a new token. For example, we did this for Blacknet around 2018.

[makishart]

Hi,
Some How this Burn Buzz word stuck in my mind and i didn't see practical results so far in any successful token.

For example, Shiba Inu is burning tokens aggressively and is it really helping them?

It's not really helping them. How big the impact from the burn totally depends on its mechanism. I took two different examples

1. BNB burn mechanism

BNB burn used profit raised through operating its product to buy back the tokens from the market. This is also pushing the circulating supply to be even less than before. It was giving huge impact to the price caused by binance has active product that was regularly generating profit for the burning purpose

2. Meme token burn mechanism

Meme token used tax mechanism to burning its token but this is only fooling investors caused by the burn generated from giving tax for any transfers that interact with the meme token smartcontract.
This burn mostly used by stupid dev who didn't evne understand about the product.

May be i am noob here and happy to hear from experts!

I believe this topic will be useful for someone too!

Shiba doesn't really burning its token. The biggest burn of shiba came from vitalik butterin.

[passwordnow]

Hi,
Some How this Burn Buzz word stuck in my mind and i didn't see practical results so far in any successful token.

For example, Shiba Inu is burning tokens aggressively and is it really helping them?

May be i am noob here and happy to hear from experts!

I believe this topic will be useful for someone too!

Not all of those tokens and projects that burn their supply are successful. As you've said, it becomes a buzz word whenever there is an announcement from any token and project that they're going to burn supply. Some of those are lucky to have a strong community and any news that they release to their community are being bought by their investors. But as I have said, not all of them are the same and even with halving or burning, not all gets the attention.

[Xal0lex]

In addition to burning, you also need the necessary demand. Burning coins by itself does not guarantee anything. It may just be one of the marketing ploys to lure investors. It is important to consider at what rate the coins are burned. If they are burned at a much slower rate than how inflation in the token itself grows, then the burn in such a cryptocurrency doesn't matter much. Something similar can be observed with the LUNC cryptocurrency.

[teosanru]

Hi,
Some How this Burn Buzz word stuck in my mind and i didn't see practical results so far in any successful token.

For example, Shiba Inu is burning tokens aggressively and is it really helping them?

May be i am noob here and happy to hear from experts!

I believe this topic will be useful for someone too!

Actually as per basic economics it does makes some sense as if you see the demand is the same it's the supply which gets reduced and if this thing happens, it's very obvious that the equilibrium gets disturbed if this thing happens and therefore ideally there should be a price increase. But the problem that many market theorists tell is that there is no real gain that flows because the token that are burnt are already with the team and were already not part of the flow so it doesn't really impacts the price.

[nelson4lov]

Hi,
Some How this Burn Buzz word stuck in my mind and i didn't see practical results so far in any successful token.

For example, Shiba Inu is burning tokens aggressively and is it really helping them?

May be i am noob here and happy to hear from experts!

I believe this topic will be useful for someone too!

Burn mechanisms used to be a key driver for upside token drive but the story has changed in recent times. Maybe in 2017-2020 but not anymore. The way the mechanism works is that some tokens are taken out of circulation. When this happens, it is usually perceived as a positive event since decreasing supply is believed to mean that price go up:

Supply goes down, price go up. (similar to bitcoin halving event where mining rewards get slashed in half).

However, most of these projects don't have a fixed total supply. There's usually an inflation that doesn't get offset by the burn events.

[JeffBrad12]

it all always comes down to the demand for the price to go up regardless of how much token are burned.
the thing is that so many project are doing this just to attract attention, but they fail miserably, some of them also burning their token decreasing the total supply just because why not, and as a result, the price stays the same even sometime it goes down hill.
these burning are part of strategy that could further helps increase the price of a project but of course it needs demand and being the center of attention first so that investors will notice that this token might be promising, though if the coin or token is pure garbage then many wouldn't care.

[o48o]

Hi,
Some How this Burn Buzz word stuck in my mind and i didn't see practical results so far in any successful token.

For example, Shiba Inu is burning tokens aggressively and is it really helping them?

May be i am noob here and happy to hear from experts!

I believe this topic will be useful for someone too!

Technically yes, but that depends on so many things. Starting from how much is going to be burned, who is burning them and in what rate? How do they acquire the burned tokens? Do they buy them from the market and continuing to do so or are devs burning their own stash that they wouldn't use anyway? (which wouldn't make anything but artificial meaningless difference to circulating supply.

As a rule of thumb; burning technically always helps the price grow. In reality it often doesn't as there are just too much to burn in order it to have any effect.

[TastyChillySauce00]

Burn will not help the price of token until it will always able to burn significant amounts of tokens that can affect the circulating supply. Keep in your mind if there are so many fake burn being made by the stupid developers.

Burn will not instantly pumping the price of token. This depends on how good the development from project.

[GreatArkansas]

For the long term I can see it's good because if supply is limited and there is token burn, supply is just decreasing over time.
But if the project is trash, these burning thing is just some kind of marketing to lure people into investing in their projects showing that the price could go up.

[danherbias07]

Lesser supply, higher value. But it doesn't always work that way.
In the past, I've seen an ICO cut their total amount of coins by three zeros (000) the billions of coins became millions, and yet the value was just glued unto. There was a window of an increase in market value but it didn't even last a day. Simply because the coins that all the holders have was also cut by three zeros so you cannot even say they did a burning mechanism, just an adjustment.
What Shiba Inu is doing may have the same effect as well. They have too many coins being held and on their stock plus they are a meme coin so the probability of the value going up is not that high. I'd stick with other coins with real projects behind them.

[wxa7115]

Hi,
Some How this Burn Buzz word stuck in my mind and i didn't see practical results so far in any successful token.

For example, Shiba Inu is burning tokens aggressively and is it really helping them?

May be i am noob here and happy to hear from experts!

I believe this topic will be useful for someone too!

Burning coins if I am not mistaken got popular a few years ago as a gimmick to try to make it seem as if by burning those coins then the price of the remaining coins will become higher.

But this brings an uncomfortable question, why the developers did not created their coin with a smaller supply to begin with? And it is obvious they refused to do so as they wanted to use burning their coins as a market strategy to create attention for their coin, however as we know for any asset to become valuable its supply not only needs to be on the low side but its demand needs to be high, as well and while burning tokens can reduce the supply, it does absolutely nothing to increase the demand.

[Apocollapse]

Can you define what is the positive way you refers to?

It will decrease the supply and technically make it more scarce, so the price would increase, it's correct for short term because the supply is unlimited. After all decreasing the circulation supply when the total supply is unlimited is pointless, burning or not, it's always centralized and the developer hold most of the coins.

[yazher]

This does not apply to all altcoins because others don't have anything to offer from the start that's why the only thing they can do is to burn some of their tokens to simply give the investors assurance that their altcoin is getting some momentum and it will increase its price soon. Others like Shiba Inu are doing a great job while their market is healthy, they choose to spice things up by burning some allocations of their tokens which will be no doubt the best thing to do in order to increase the price of their token and by the way, I read the news yesterday that they are gaining more investors and the price of Shiba Inu is increasing because of this event.