Is burning unsold tokens always a good thing or should other options be taken?

dunfida

legendary

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Merit: 1140

Quote from: phillymogul on March 02, 2018, 02:21:57 PM

Most times I go for the ICOs burning unsold tokens. But in this article two other
options are presented. http://bitcoinist.com/think-burning-unsold-tokens-good-thing-think/

Depending on the structure an investor can gain more tokens and percentage when unsold tokens are not burned.
We're talking about the team keeping the tokens or even distribution through like an airdrop could be more beneficial.

Which do you prefer?

I have seen some projects that they didnt even burned the unsold tokens but rather they do make an airdrop. Just like ADB(Adbank) project.They havent burned out yet but they are doing 2 possible airdrops to its holders which i do see a good idea but i still thought that it might really give negative impact towards the price.Considering that people will really mostly dumped out those free tokens been acquired.So i still prefer on burning all those tokens left.

shirackjs

sr. member

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Burning tokens are good for the investors and coin holders. The lower the supply, the better the price will be. I always prefer burning tokens.

Jating

hero member

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Quote from: ZaynDale on March 02, 2018, 02:42:41 PM

Burning unsold tokens in my own understanding will reduce the circulation supply and therefore the price value would rise.
There are some instances and incidents that in the past, some unsold tokens are being hacked and developers have no idea whose the responsible for the sudden token distribution from the main wallet.
Oyster PRL is burning 10M tokens from developers' wallet to reduce the maximum supply and to maximize the possibility of token price value will soon rise and every holders could benefit.

Exactly, the coins in circulation will be reduced making the price of the remaining coins skyrocketed. And that what we investors like, coins that is really good for long term hold because the price will surely increase because of its scarcity and limited supply. So i think its a good thing to do with some ICO tokens.

Also burning tokens will ensure that there will no sudden dumping because it doesn't look good at the eyes of the investors. And besides, who are going to hold the unused tokens? the dev? again this will not sit very well with investors because at the back of our minds they can suddenly dump it anytime causing the price to plummet.

ZaynDale

full member

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T H E G O L D E N I C O

Burning unsold tokens in my own understanding will reduce the circulation supply and therefore the price value would rise.
There are some instances and incidents that in the past, some unsold tokens are being hacked and developers have no idea whose the responsible for the sudden token distribution from the main wallet.
Oyster PRL is burning 10M tokens from developers' wallet to reduce the maximum supply and to maximize the possibility of token price value will soon rise and every holders could benefit.

coinamu

full member

Activity: 476

Merit: 106

I think burn the unsold token is the best option dev can take, airdrop can be good think to spread about the token but the price can be down significantly cause the receiver of airdrop usually dump it when they receive the prize

cryptocrocs

member

Activity: 182

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It is really depends on the situation,because if the total supply of tokens is too big that would be better,burning unsold tokens will give us more chance to get higher price value of these tokens.Less supply higher value,based on the demand and supply law one more thing about it the market oder book will change so that there will be some reset to its price.

phillymogul

copper member

Activity: 57

Merit: 7

global marketer and strategist

Most times I go for the ICOs burning unsold tokens. But in this article two other
options are presented. http://bitcoinist.com/think-burning-unsold-tokens-good-thing-think/

Depending on the structure an investor can gain more tokens and percentage when unsold tokens are not burned.
We're talking about the team keeping the tokens or even distribution through like an airdrop could be more beneficial.

Which do you prefer?

Topic: Is burning unsold tokens always a good thing or should other options be taken? (Read 72 times)