The developer wanted to create scarcity or at least trim down the humungous supply of their token so I think it does make sense that they burn some of the tokens along the process. This is to limit the inflation that will pull the price down. It is only one known strategy to attract investors making them think of the future scarcity of the token which means, less supply more demand = higher prices.
Your assumption could be right, wrong or both. You don't have a perfect explanation why dev is doing it. I'm assuming OP was inspired by the "RushMoon" burning process. We don't know the accurate plan of their burning process. But I like this burning process because I saw the real effect of this burning in the "Ferrum network" 
Topic: Does this make any sense? (Read 227 times)
Burning of token is to reduce the number to an attractive quantity that will increase the interest of investors to buy which will cause an increase in the price and it is usually said when the token is already out in the market but if it is before the token is listed, we have to be careful. But some projects also announce in their roadmap that they will reduce the number of token.
Crypto experts in the house please your attention is very needed right now, does it even make any sense to burn of tokens max supply gradually when the token or project have not been listed on exchanges? Does this make any sense?? Thanks
I never heard about it, why someone burns their tokens before getting a listed exchange. Probably this project is probably a scam project, to show lucrative opportunities for new exchange investors. We are in the middle of bullrun, now we don't know the next movement of scammers. Legit projects topics must be different, they are doing for our good. 
Crypto experts in the house please your attention is very needed right now, does it even make any sense to burn of tokens max supply gradually when the token or project have not been listed on exchanges? Does this make any sense?? Thanks
Considering that it was not yet listed to exchange, it was not a big deal nor it affects the price. However, it could really make sense once it already has a market value, and burning some token from the total market supply helps a lot for its value to increase. This is a common practice already and I was in favor of this action as the holder could benefit from it. But as what is stated by OP, there is no problem with that. Let the team do it, I'm sure they know what they are doing and probably it was good for everyone.
The developer wanted to create scarcity or at least trim down the humungous supply of their token so I think it does make sense that they burn some of the tokens along the process. This is to limit the inflation that will pull the price down. It is only one known strategy to attract investors making them think of the future scarcity of the token which means, less supply more demand = higher prices.
Then it means dev doesn't think carefully when created the token so they have a stop-gap measure, to trim it down before it got listed and dumped on exchange. Sure it does make sense from dev's point of view but for any investors who want to invest in this coin, they are gambling with incompetent dev from the start.
Can you provide the project link to give you the proper answer to your question? This makes several sense. This could be very hard to tell real sense. We will burn out tokens, so that people will buy more even after the token sells. Or Devs hasn't enough confidence that tokens price will be stable, then announce that tokens will burn to create dip protection.
Many projects did it for different reasons but to me it doesn't make sense because if the token is already on exchange the burn won't be a total waste unless the token is useless and has no good demand, burning before listing is a waste
Crypto experts in the house please your attention is very needed right now, does it even make any sense to burn of tokens max supply gradually when the token or project have not been listed on exchanges? Does this make any sense?? Thanks
this way is not wrong. they do it with the aim of promotion so that investors are more interested. so it doesn't matter they burn tokens before listing or even before tokensales. the more tokens burned the lower the supply of tokens in the market and it will increase the price. so I support this.
hero member
Activity: 2856
Merit: 541
Leading Crypto Sports Betting & Casino Platform
There should be a reason why they decide to burn their tokens and I doubt that they only follow the trend to burn their tokens and attract attention from the investor. If they do that to attract the investor's attention, but they do not have a good project, that will not work for the project, and that will not be useful. Maybe you can ask the developer why they do that so you can know the reason.
Crypto experts in the house please your attention is very needed right now, does it even make any sense to burn of tokens max supply gradually when the token or project have not been listed on exchanges? Does this make any sense?? Thanks
Since the advent of decentralized exchanges, listing for new coins has become commonplace. Therefore, if the team does not make a listing on DEX, it shows the inability of the team to make a decision on the promotion of the coin. And in this case, the burning of coins will not make any difference, because they are not traded on the market and therefore do not have a market value.
I hear what every poster has said here about the purpose of crypto projects Burning coin in relation to price control or Boost and if that is the case, while is Etheruem the second cryptocurrency to Bitcoin being priced so high if it has an Infinite supply of coins? Was this not suppose to affect its price if we don't even know what the total supply would be 
Burn coin it self is to control the token price, why anyone would burn it if the token it self does not have any price in the matket. Comunity also does not know how many token needed for the project. They does not know the real demand of the token so they can control the inflation rate.
Crypto experts in the house please your attention is very needed right now, does it even make any sense to burn of tokens max supply gradually when the token or project have not been listed on exchanges? Does this make any sense?? Thanks
that doesn't make sense. that means the project can't produce the active profit from using its product. The question is whether the project has actual product or not? if that's not even listed on exchange site and how is this affect the price of coin? it sounds very strange for me personally dude. I personally will think that if that's a shady scheme. there are lots of platforms were using this scheme and they have ended as scam project.
It looks like there's no purpose, if burning a coin before it's listed is made up how does it create hype? because so far burn is the most effective way to make the coin fly to the moon on condition that they already have an exchange to trade.
copper member
Activity: 2758
Merit: 1163
Leading Crypto Sports Betting & Casino Platform
Not any make sense.
IMO, is not actually burn that just a reduced token supply because the token they are burn is not coming from circulation in the market, so basically is really useless since the token still don't have any price.
IMO, is not actually burn that just a reduced token supply because the token they are burn is not coming from circulation in the market, so basically is really useless since the token still don't have any price.
The token is in circulation if it was distributed on token holder regardless whether it was listed on exchange or not.
@OP, It make sense if the goal of token burn is to decrease the over supply of token to correct it before it was listed. You should indicate the specific toke you are pertaining so that we know the real reason of the team for token burn.
Crypto experts in the house please your attention is very needed right now, does it even make any sense to burn of tokens max supply gradually when the token or project have not been listed on exchanges? Does this make any sense?? Thanks
Burning of tokens - yes this make sense as this is one way to reduce the supply hence creating a good demand and obviously, will push the price higher in the future.
As for the timing? depends, there's no one size fits all strategy here, if the project wanted to burn before it gets listed then I do see anything wrong with that. Same thing as burning it after it gets listed. So it boils down to the project per se, and their plan of action.
The developer wanted to create scarcity or at least trim down the humungous supply of their token so I think it does make sense that they burn some of the tokens along the process. This is to limit the inflation that will pull the price down. It is only one known strategy to attract investors making them think of the future scarcity of the token which means, less supply more demand = higher prices.
Crypto experts in the house please your attention is very needed right now, does it even make any sense to burn of tokens max supply gradually when the token or project have not been listed on exchanges? Does this make any sense?? Thanks
Token burn can come in different angles, that is, some project team burns tokens after their ICO, in this case, any unsold token left during the ICO is burnt thus reducing the supply, after which listing on exchanges takes place. On the other hand, some project team burn their tokens when already listed on exchanges to reduce the total supply while increasing the price.
However, burning a token when not listed on exchanges and when it is also clear the team didn't have any ICO do not really make sense on one hand as they should have set a total supply from the on set, but on the other hand, the team might have found out that in order to achieve their aim, then it will be worth it to burn off some tokens to reduce supply, in this case a better explanation will be made to the community.
In all ramifications, the essence of token burn is to have good token price, so if the team decides to do so before listing, I think it shouldn't be a problem so far they have a clear explanation on why they are doing so.
Crypto experts in the house please your attention is very needed right now, does it even make any sense to burn of tokens max supply gradually when the token or project have not been listed on exchanges? Does this make any sense?? Thanks
What can anyone do without their own benefits by burning their own coins before listed exchange? There must be a reason. Investors don't sell their coins and can release the rest of the unsold coins. Most of the time those altcoins maximum supply is infinity. BNB topics are different because CZ provides exchange services. 
If the coin developers are burning the coins that are already in circulation, that doesn't make sense IMO. But if what they are burning or removing from coins that are not even in existence, well it's a technique that could possibly increase valuation per token, but it's not even sure considering that demand needs to be present for it to happen. Whatever the setup is, this idea of burning coins/tokens is somewhat gaining traction and the market seems to be biting on these, as tokens with burned coins seem to appreciate in value almost instantly.
Jump to: