Really Burn helps Token in positive way?

[Wexnident]

It's one way of helping the coin increase in demand since supply would decrease, meaning there are fewer coins for anyone who wants to buy it. Emphasis on "one" though, since it's not the only factor that involves demand. If a highly demanded coin started burning to reduce its supply, then its price would most likely soar, but if a not so demanded coin suddenly started burning in an attempt to stoke the economy, chances are nothing is really going to change. There might be a change in a day or two, but that's about it, it wouldn't even be that big imo. It'd probably drop down to it's regular price after that.

[tsaroz]

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 limits the number of tokens on circulation as well the final number of supply. A burn by limiting the tradable tokens should be able to increase the demand of the token making it's price expensive. But if the release of tokens are larger than the burn amount, it would keep on increasing the circulating coins hence the burn would have no effect.
Burn of Shiba Inu should yield a positive boost on price, if not at the moment, eventually it would have a positive effect.

[Yamifoud]

We thought before that burning tokens will help to grow its price because that is what they have said and these developers make a promise. A lot of people got fool by such a thing. Investors had expected too much from that but what they have seen after is nothing. It is a failed strategy and so people don't believe it anymore. Honestly, what makes a price grow in a particular project is based on how valuable it was. But these shitcoins and useless projects, no matter how much tokens they burn, it doesn't change as it remains worthless project.

[cryptoaddictchie]

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!

Sometimes its psychological in my opinion. People thinks that when supply become shorts its become valuable. But in the essence of law of supply and demand thats true. But it depends on the tokenomics of the project. Apparently it could be a bluff but others work on it like literally pumping when there is a news.

[Mpamaegbu]

Yes, token burning is a positive thing in tokenomics as it helps reduce maximum supply and expectedly creates scarcity. Scarcity creates demand. Demand causes price to flip. However, it's not the only thing that should cause price to rally up. I think use-case or utility of a token is more important than its burning. If a token has utility that investors already know of, and then the project decides to burn; that becomes an instant spike in price to the upside. I must confess that most noob investors would rather think of token burning than they think of its utility.

[KiranKBS]

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

Hello Sir, postive way i meant increasing Market cap and price token increase!

[JeffBrad12]

We thought before that burning tokens will help to grow its price because that is what they have said and these developers make a promise. A lot of people got fool by such a thing. Investors had expected too much from that but what they have seen after is nothing. It is a failed strategy and so people don't believe it anymore. Honestly, what makes a price grow in a particular project is based on how valuable it was. But these shitcoins and useless projects, no matter how much tokens they burn, it doesn't change as it remains worthless project.

the value comes from the demand, reducing total supply if nobody is looking for the coins will simply means futile attempt. thats what happened with so many shit coins out there, they think their coin is so good if they reduced their total supply they will immediately become something of high value but thats just not true at all.
mainly because demand is what determine the prices of these coins in general, even if there is only 1% of total supply left after burning if there's no demand then the coin is as good as useless.
so many coins out there never do burning and still getting good value because they are just that good fundamentally.

[Wahyuihib]

indeed, as said, burning tokens aims to increase the value of these tokens.  but what you need to remember is that in the world of trade, the value of an item increases if the demand for that item increases.  so even if the token is burned if the demand for the token does not increase, the value will definitely be the same

[TheUltraElite]

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.

Burn can work out if the project is actually developing and reaching some new milestones. There are many projects that have been down in the dumps and have stopped buring tokens. Limited supply and burn means a gradual rise in price if the trading is continuing properly on good exchanges. However this is not always possible and most projects die out quickly.

I think the best way to assess these projects is to maintain a chart of how your chosen projects have done in the last 2years and then only decide whether to invest in it.

[jaberwock]

Burn limits the number of tokens on circulation as well the final number of supply. A burn by limiting the tradable tokens should be able to increase the demand of the token making it's price expensive. But if the release of tokens are larger than the burn amount, it would keep on increasing the circulating coins hence the burn would have no effect.
Burn of Shiba Inu should yield a positive boost on price, if not at the moment, eventually it would have a positive effect.

I realize that it is going to be important to burn some part of the supply to decrease the supply so even if there is same level of demand then lower supply would make the price go up. However, it doesn't work for a lot of people considering the fact that we are facing situations where demand is so low that supply could be much lower and it still doesn't change anything.

I understand that it will not be at a point where it is reaching to a new level, but as long as we could end up being a bit different, it should be fine. Just get some hype, get some people very happy regarding the burn, that should be how it is and that should be how it could improve. Unfortunately not a lot of people are happy about it currently, not for many tokens at least, they just ignore it and price doesn't change much.

[Blitzboy]

Its the process of permanently rendering tokens worthless by removing them from circulation. Do I have your attention yet? I cant imagine somebody voluntarily doing it.

In a counterintuitive turn of events, token burning can boost the value of unspent tokens. As the quantity of tokens diminishes (through tokens being burned), the value of the remaining tokens may increase, assuming demand remains constant or grows.

Aggressive burning can be used to keep or improve the value of Shiba Inu or any other token. However, keep in mind that this is merely one tactic among several used in projects. Success or failure depends on many other variables, such as the state of the market, the strength of the project's foundations, the level of community support, etc.

[AakZaki]

Sometimes its psychological in my opinion. People thinks that when supply become shorts its become valuable. But in the essence of law of supply and demand thats true. But it depends on the tokenomics of the project. Apparently it could be a bluff but others work on it like literally pumping when there is a news.

The law of supply and demand will always be right, it will not deviate from those two things. Burning tokens that are carried out also aims to reduce the supply of tokens which results in price increases because everyone will say the supply is decreasing and getting less. this is a marketing trick to increase the positive token price, where the circulating supply decreases. The Shiba Inu are a true example of the crazy rise when it comes to Burning their tokens. But it also depends on how the community is owned, if the community is solid and continues to be active then it can develop, but the community is small and not solid, it will only end up being abandoned.

[Raflesia]

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!

In theory, burning could help to make the supply smaller and could lead to better price growth because with less supply, scarcity will occur and purchases will be more expensive.

But things like this will only happen for coins that are really worth it but when it comes to meme coins or shitcoins burning is just like a figure of speech and seems like nonsense because regardless of whether there is burning or not I think in this case we already know how the continuation will happen because in the end coins like that can only develop with a pump and dump system so no matter how much burning is done for shitcoin and memecoin it will be useless because there will be no impact and it is just a strategy to make it seem like the coin is alive.

[Natalim]

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!

It works for some projects but not all that promise an increase in its price went perfectly, many are still low and have no changes. That is why we can't blame people for saying that is not an effective way for changing the view of a particular project because if that is a shitcoin/s, we couldn't really expect such thing as "pump" but what we probably see is that the project will stay low and worthless and investors remain don't have the courage to buy them.

It all lies on the potentiality of the project, not the total market supply. In fact, ETH can prove it.

[lalabotax]

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

Hello there..
Basically, token or coin burning aims to reduce the amount of supply circulating in the market to be smaller. Well, in theory, this makes sense, because it is hoped that it will attract more and more interest from old and new investors to invest in these tokens or coins. However, an investor usually also pays attention to the amount of token supply, if it's too much, then this will also have an impact on sales, right? Just imagine if there is more supply than demand, this will end in a token drop significantly and it will be difficult to go back up.

However, if token burning is held, the supply can be greatly reduced, this will make the number of token supply even less, so that the less token supply, won't it reduce the gap between demand? What's more, usually if there is a token burning, then investors can be more confident if the token can rise again, at least they are not too worried because the number of tokens is very large.

But again, this will also depend on what kind of token or coin it is. However, many shit coins or shit tokens also do this but still can't go up again or have high potential. because not all projects that do token burning can really optimize their potential, even just a matter of burning it without doing anything else that can strengthen the project. It will still be shitcoins.

[ultrloa]

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!

The answer is given already and it can help the supply less and also by doing this it can also create demand. So when the supply is less then the demand is high for that action or other things they do the price would provably up that's why its also good to participate to those project who always have burning solution to their increasing supply since this could really be a big help to their project to get a good boost especially when people losing an interest since the price is declining so bad.

But also remember that this scenario not always happen since there are scam tokens who do this just for hype and to scam people.

[JeffBrad12]

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!

It works for some projects but not all that promise an increase in its price went perfectly, many are still low and have no changes. That is why we can't blame people for saying that is not an effective way for changing the view of a particular project because if that is a shitcoin/s, we couldn't really expect such thing as "pump" but what we probably see is that the project will stay low and worthless and investors remain don't have the courage to buy them.

It all lies on the potentiality of the project, not the total market supply. In fact, ETH can prove it.

well honestly when we are talking about ethereum its among the most effective ones in burning the total supply to keep their circulating supply from getting overflowed.
as a result, this coin has been going up ever since and the main factors that could make this coin having burn mechanism that really effective is also the fact that this coin have massive demands generated from its utility being the most used smart contract and the fact that the gas fee quite high meaning many would stack some ethereum for the sake of interacting with smart contract prominently the dapps.
ethereum is just different compared to other altcoins in this case, its just too good despite the fact that its quite expensive.

[Quidat]

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!

The lesser the supply the higher the price would be on a particular token and considering that SHIB does have that huge supply then it would really be just that normal that value would be lessen but in general sense it would really be just still that same because even if the supply is low the price is huge in terms of value or digit but it would really be just the same if we do speak about those huge ones.
Huge supply wont really be that an issue if a particular coin or token would really be having that actual utility on which means that demand would be there and investors would really be stashing up these
coins no matter how big the supply is. It is really just that this thing isnt only applicable on SHIB itself but in most coins in the market, burning mechanisms is something that would really be that
relevant on each project and does give out that kind of impression that they would really be pumping their price.

[Adbitco]

There is no dependency of token burning to surge or spike after its supply's has been reduced, there could be some chances that after burning the token if the team do not add liquidity to project it would still remain the level at which it is. There are some token and coin that has been burned since there is nothing much depending in the market they still do not make any progress and after which, development is what really give spike to a project increase dramatically without any limitations of price or not, that is right because some project with huge supply keeps making waves in the market and price are pretting dancing well in the market without undermining to total supply. Most of us here alway had this orientation that whenever a token is burned there comes a price increase, although this could be true but if they project own do not add a reasonable amount to that project I don't think if that project could make a move by adding some percentages.

[LogitechMouse]

Lesser supply, more demand = increase in price. The famous basic economic law that scammers are using.

The famous project that's being token burn is Binance who have been doing this for years already until they reach the total supply of I think 100,000,000 coins. Most of the time, I'm hearing this term "token burn" in some meme coins, and shitcoins out there who are using that term just to attract new investors. On the other hand, investors think that if they buy earlier, the supply will slowly decrease thus increase it's price. The problem with this token burn is that, there's no assurance that the demand will stay the same if they lessen the supply. It's kind of useless if you decrease the supply, but the demand is low. For sure price will just go down even more.

This is very different from Binance Coin since it has a huge demand, and with the supply slowly decreasing, the price might increase in the future. As for Shiba Inu, the supply is very huge that a small token burn would have little to no effect towards the price of it. Is it helping them? Price-wise, not so much, but if they will do it in the long term, and the demand stays the same then their might be a difference in price..