How burn token affect token price - page 2.

Bastime

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Quote from: nyerok on March 05, 2018, 02:41:24 AM

Quote from: linapel318 on March 05, 2018, 02:24:52 AM

How will burn token affect the price of token? Huh

Will the price become higher after burning token due to the reduce of supply?

in my opinion burn token very effect to the price of the coin because the coin is burned and not created again and automatically the price of coin can be very expensive because the supply is getting thinning.

And then in the future, when the supply is low because some tokens were burned and the demand will be very high then that's the effect of the token burning happened in the past.
There are a lot of altcoins today that has over 500M to Billion coin supply that didn't priced so well and only Ripple does have a good future.

ardyology

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The main reason why token burning after ICO main sale takes place is to preserve the value of a particular token. If unsold (unpurchased) tokens were released to the market, or otherwise allocated without charge, that would inherently drive down the value of each token. Not burning tokens is therefore directly detrimental to any investors in that ICO. And so, not burning unsold tokens should be, and is, a deal breaker for all ICO investors with a grasp of basic math. But it's just one of the factors though that affects the token price.

rayk

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It depends, if it is from circulating supply tokens born it affects price but sometimes tokens from uncirculated supply are born.

wwtt1210

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it should increase the price as it decreases the supply

inthelongrun

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The Martian Child

Quote from: kaloloy on March 05, 2018, 02:57:54 AM

Quote from: linapel318 on March 05, 2018, 02:24:52 AM

How will burn token affect the price of token? Huh

Will the price become higher after burning token due to the reduce of supply?

Recently Oyster Pearl PRL are burning 10M of tokens from the maximum PRL supply so from 108M down to 98M max supply.
The instance is, PRL will be more expensive due to the supply limit and as we noticed that coins that has a very limited supply like Million coin Altcoins are mostly price valued higher than $1 but billion coin supply are only price valued Lower than $1.

This is mostly effective when the devs are holding too much supply which is a bit worrisome because they can dump it anytime in the market. That is why sometimes I really avoid coins with devs holding lots of the remaining supply.

mariayaz

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Burning coin (unsold remaining coins during ICO) do effect on increasing the price, if any project burn coins that mean it will decrease the total supply and increase the price of coin. minimum the total supply, maximum the price of coin.

kaloloy

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Quote from: linapel318 on March 05, 2018, 02:24:52 AM

How will burn token affect the price of token? Huh

Will the price become higher after burning token due to the reduce of supply?

Recently Oyster Pearl PRL are burning 10M of tokens from the maximum PRL supply so from 108M down to 98M max supply.
The instance is, PRL will be more expensive due to the supply limit and as we noticed that coins that has a very limited supply like Million coin Altcoins are mostly price valued higher than $1 but billion coin supply are only price valued Lower than $1.

Babayan

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Less tokens - higher price, so if company burns their tokens, the price of others will raise. For example, the price of Bancor raised when the amount of tokens became less from 71k to 69k.

Nivir

hero member

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Most of the time burning of supply makes the price grow as it means scarcity. The law of demand and supply. But everything depends on the market though so sometimes it may not have any effect at all. Long term, you should be happy with it though.

irmasany

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when an ico project really does not sell out its tokens. the rest must be burned, although there is no guarantee that the tokens will have great value in the future. depending on dev and team to manage it. so, to burn the rest of the token, the unsold one is the most correct action.

worldooftanks

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Not always does the burning of the token affect the price koordinalno that the price would go up,of course usually when the coin has its significance and there is a burning price will go up but as far as it then goes down.

Canoppo99

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First 100% Liquid Stablecoin Backed by Gold

Quote from: linapel318 on March 05, 2018, 02:24:52 AM

How will burn token affect the price of token? Huh

Will the price become higher after burning token due to the reduce of supply?

Yes, exactly. This is the law of supply and demand. If there are many people who want to buy bitcoin but there are only few coin that in sale then those people wiol competing each other to buy bitcoin by increase their buy order price rate.

nyerok

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Quote from: linapel318 on March 05, 2018, 02:24:52 AM

How will burn token affect the price of token? Huh

Will the price become higher after burning token due to the reduce of supply?

in my opinion burn token very effect to the price of the coin because the coin is burned and not created again and automatically the price of coin can be very expensive because the supply is getting thinning.

Kryten12

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TREEBLOCK

Sometimes it has no affect at all on the token price it simply removes part of the circulating supply which will reduce the market cap and reduces the overall number of tokens. If you are in a coin that is paying for staking or dividends then your proportional share wil lhave increased and that payout will increase.

linapel318

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How will burn token affect the price of token? Huh

Will the price become higher after burning token due to the reduce of supply?

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