effect of unsold coins of ICO in burn

tiar4dewie

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Quote from: liquidX3 on January 25, 2018, 09:06:04 AM

Usually not so! developers take % from the sold tokens but not from all (sold and unsold) if this is not so the development team may be scammers. I would not invest in such a project

Yes, in this case they would be more risk-taking tokens burned and letting those sold rather than sacrificing their customers to investors. so that in the future they can hold ICO again with a more attractive offer

liquidX3

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Quote from: Cnut237 on January 25, 2018, 08:39:32 AM

I think in general burning is good, but there can be unintended effects.
Say a coin has 20% to devs and 80% is to be sold at ICO.
If only 30% of that 80% is sold and the rest burnt, then we have 20% to devs, 30% sold at ICO, 50% burnt.
After the burning takes place, this means that the tokens are in effect distributed 40% to devs, 60% sold.
So in this case burning has a strange effect.

Usually not so! developers take % from the sold tokens but not from all (sold and unsold) if this is not so the development team may be scammers. I would not invest in such a project

Hellobx

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If these unsold tokens are destroyed, the total market value of the token will be reduced accordingly, which would be a good thing for an investor.
But in most cases, good projects seldom have unsold tokens. Shocked

kewlc3s

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Quote from: Cnut237 on January 25, 2018, 08:39:32 AM

I think in general burning is good, but there can be unintended effects.
Say a coin has 20% to devs and 80% is to be sold at ICO.
If only 30% of that 80% is sold and the rest burnt, then we have 20% to devs, 30% sold at ICO, 50% burnt.
After the burning takes place, this means that the tokens are in effect distributed 40% to devs, 60% sold.
So in this case burning has a strange effect.

Partly agree with you, but anyway, with unsold token burning total number of tokens available on the market decreases. That will lead to potential price grow of each single token.
Just imagine case where 50% are not burnt, most probably devs would keep it, or split between investors or aidrop to increase selling volume. In worst case, when devs keep tokens percentage would be 80/20, so it is even more strange.

chainese

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Quote from: kevinzxz on January 25, 2018, 08:21:14 AM

according to my personal, coin that is burned when the ICO coin is unsold gives a good effect for investors, because the coin is circulating a bit (limited), making the coin price will increase in the future when the ICO project is started, compared ICO that are coin not sold given to the investor make the coin price difficult to increase the price because the coin is very much circulated (in my opinion), therefore I prefer to join ICO that coin unsold will burning. i don't know it's true or not because this is my opinion Grin

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totally agree

Thanasis

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Quote from: semobo on January 25, 2018, 08:40:14 AM

Quote from: kevinzxz on January 25, 2018, 08:21:14 AM

according to my personal, coin that is burned when the ICO coin is unsold gives a good effect for investors, because the coin is circulating a bit (limited), making the coin price will increase in the future when the ICO project is started, compared ICO that are coin not sold given to the investor make the coin price difficult to increase the price because the coin is very much circulated (in my opinion), therefore I prefer to join ICO that coin unsold will burning. i don't know it's true or not because this is my opinion Grin

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As you said the unsold coins will be burned in ICOs will increase the demand of the coin because it will decrease the total supply of the coin,but if the project has unsold tokens then it may not have good potential usage in future.So the that coins or tokens are give benefit for the intial sellers when it listed on exchanges.
But in my opinion it is not good to invest on the project like these.

Agree with this,but many of the investors intention is just to make money from the ICO and no people is willing to hold their coins after the end of the sale,so it give benefits for the investors when investing on the project with burned tokens as OP said.

semobo

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Quote from: kevinzxz on January 25, 2018, 08:21:14 AM

according to my personal, coin that is burned when the ICO coin is unsold gives a good effect for investors, because the coin is circulating a bit (limited), making the coin price will increase in the future when the ICO project is started, compared ICO that are coin not sold given to the investor make the coin price difficult to increase the price because the coin is very much circulated (in my opinion), therefore I prefer to join ICO that coin unsold will burning. i don't know it's true or not because this is my opinion Grin

.

As you said the unsold coins will be burned in ICOs will increase the demand of the coin because it will decrease the total supply of the coin,but if the project has unsold tokens then it may not have good potential usage in future.So the that coins or tokens are give benefit for the intial sellers when it listed on exchanges.
But in my opinion it is not good to invest on the project like these.

Cnut237

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I think in general burning is good, but there can be unintended effects.
Say a coin has 20% to devs and 80% is to be sold at ICO.
If only 30% of that 80% is sold and the rest burnt, then we have 20% to devs, 30% sold at ICO, 50% burnt.
After the burning takes place, this means that the tokens are in effect distributed 40% to devs, 60% sold.
So in this case burning has a strange effect.

jlanzago

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I think it really depends. In general yes, it is better for the tokens to be burned, or simply not generated. However not always. For example if you do invest in an asset backed crypto, burning does not really have an effect because the only tokens in circulation are the ones that have been sold.

liquidX3

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You are very close to the truth but it is effective to burn the tokens not during the ICO period or in his end but only after entering on the exchange somewhere in a month

danmoris

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Indeed burning unsold tokens makes the coins more limited. It also prevents inflation which could decrease the value of the coin.
But the price of each coin depends on the project, team and the community.

jayc89

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Quote from: jouns on January 25, 2018, 08:26:53 AM

Yes indeed you are right, when a coin is burned the price grows, and when the unsold coins are sold, the price falls.

Projects with coins getting burned can still be worth the same price if there is no buyers around.

jouns

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Yes indeed you are right, when a coin is burned the price grows, and when the unsold coins are sold, the price falls.

kevinzxz

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according to my personal, coin that is burned when the ICO coin is unsold gives a good effect for investors, because the coin is circulating a bit (limited), making the coin price will increase in the future when the ICO project is started, compared ICO that are coin not sold given to the investor make the coin price difficult to increase the price because the coin is very much circulated (in my opinion), therefore I prefer to join ICO that coin unsold will burning. i don't know it's true or not because this is my opinion Grin

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