Lower circulating supply of tokens, It is good or bad?

RoftheN

full member

Activity: 546

Merit: 100

Quote from: Pain Packer on August 26, 2018, 07:51:52 AM

With many ICO's not selling so much of their tokens or not reaching the hard cap, many of these token's price always plummeted after entering the exchange. With the excess tokens that are not sold during the ICO are being burned, it is really possible that a fewer circulating supply of tokens will make it rarer thus it is more valuable? More valuable meaning pricier thus each holder of token will get more from what they bought? Or it is actually the opposite? What is your opinion about?

Please don't hate me for my thinking. If you know that I'm wrong, please correct me.

It is better to have a low circulating supply of coins instead of a higher one since low circulating supply of coins means it is easier for there to be scarcity of the coins and with scarcity comes a higher price of the coin. A coin with a low circulating supply of coins in the market has a higher chance of price going up than a coin with high circulating supply of coins

yslyv

hero member

Activity: 1078

Merit: 537

as an investor point of view it is better. if i invested to a project i check circulating supply and price of that altcoin. so those 2 parameters give you total cap of the project. if circulating supply is low then it means that there are not so many people that owns this altcoin in their wallets.

nekorakoeora

member

Activity: 434

Merit: 10

too little amount that there are certainly making it difficult enough will also be for sale. It may sometimes also be confusing. instead of becoming scarce then it is thus avoided expensive but not even practice. Perhaps it would be better if too little then avoid only fear for the outcome did not match expectations.

sanacaks

jr. member

Activity: 308

Merit: 4

If any project burn some tokens it must have some influence on token prize. Because its limiting the total project value. Its is just simple math but we must not forget about manipulations can be happen on tokenamatics.

kobita333

member

Activity: 244

Merit: 10

Official Street Team member

It actually depends on the market demand, not on the circulating supply. If circulating supply would be the issue, there would be more coin same as BTC value. However, if the coin has utility, it will grow certainly. You have to for some time.

AgentZero23

member

Activity: 644

Merit: 10

Quote from: Pain Packer on August 26, 2018, 07:51:52 AM

With many ICO's not selling so much of their tokens or not reaching the hard cap, many of these token's price always plummeted after entering the exchange. With the excess tokens that are not sold during the ICO are being burned, it is really possible that a fewer circulating supply of tokens will make it rarer thus it is more valuable? More valuable meaning pricier thus each holder of token will get more from what they bought? Or it is actually the opposite? What is your opinion about?

Please don't hate me for my thinking. If you know that I'm wrong, please correct me.

Technically yes, the fewer the supply the highest chance the price will be more valuable. But, it will go down with the demand and the use case of the tokens. Investors now are very smart about their investment. They invest in projects with an actual product and a great developer behind it.

Servantes

sr. member

Activity: 378

Merit: 250

Look ARROUND!

Burning the unsold tokens is a good tactic IMO, we should not forget, that people tend to judge the coins / tokens not just by the actual price, but also by the total market value, and the smaller the circulating supply is, the less the market cap, which means theoretically more room to grow.

lebedi

member

Activity: 197

Merit: 15

The lower going is not so bad because to my mind it is a ign of the stability, am I right? I consider that it will bring the constant stability but the bull run will make this deal more difficult.

bitcoinbuyer

jr. member

Activity: 143

Merit: 1

“The Premier Digital Asset Management Ecosystem”

Lower circulating of tokens is not so bad because it helps them to be on the wave and to have their particular way for the development and improving.

Arkham Knight

full member

Activity: 532

Merit: 100

Traders prefer low supply of tokens. I've made a lot of profits last year on low supplies and they usually can multiply up to 100x or 1kx if possible. They are good for short term trading and I have not seen any disadvantage of low supply coins because large supply coins even execute burning of their tokens.

gerbas

sr. member

Activity: 581

Merit: 250

The logical way would be the smaller the supply then the rarer the coin would, and the price will also be higher. But sometimes it doesn't goes that way, there is time when a coin with low supply has a low price also, cause there aren't enough people who are looking on that coin.

Gabmot

member

Activity: 686

Merit: 11

Quote from: Awesomus Maximus on August 28, 2018, 03:42:15 PM

Quote from: Pain Packer on August 26, 2018, 07:51:52 AM

With the excess tokens that are not sold during the ICO are being burned, it is really possible that a fewer circulating supply of tokens will make it rarer thus it is more valuable?

Low circulating supply could make the price go up temporarily because the demand may be greater. But in the long run what matters most is the total supply. How are the additional tokens released? Are they mined, or staked? At what rate. All that has to be taken into account. The closer the circulating supply is to the total supply, the scarcity is larger and the tokens are more valuable.

I think this perception is actually true to a reasonable extent. In the long run, any project that considers this should benefit greatly alongside their investors.

adzino

copper member

Activity: 2968

Merit: 575

www.Crypto.Games: Multiple coins, multiple games

The price is not just about the supply of tokens. It also depends on how the tokens are supplied and the project. If it is just a clone project, chances are high that the price will fall and become eventually useless. If no progress is seen on the project or on the verge of being abandoned, the price will be low and end up dying. So, it totally depends on the potential of the project.

fanji

sr. member

Activity: 700

Merit: 260

the price will affect if the supply coin is too much, we can just take the example of doge coin whose total supply is 116 billion the price never rises so rapidly, unlike bitcoin which has only 21 million supply but from year to year has experienced a rapid increase, maybe the only way to fix tokens that are over supply must be burned

indobitcoin.tk

sr. member

Activity: 700

Merit: 250

This will be back on how good the existing systems or concept behind them and also the token team that exists therein. There are two speculations that might happen, first probably as you say that the less make it more rare and expensive it could have happened if does have quality. but the opposite is also too little will certainly be difficult to sell it and even investors are not interested in it.

rricksu

jr. member

Activity: 182

Merit: 2

Quote from: SparklesCoin on August 28, 2018, 03:35:56 PM

You are both right and wrong at the same time. Yes, if the tokens become rare it might create some spark and will be able to bring the market a little further up. But if these are being burned to manipulate it, then in the long run, it might be a trouble.

I think if we compare the scenario to the local Fiat currencies and economy, Holding money is not healthy for the economy to regulate. Relating it to the crypto economy, holding cryptos is good, but it is better to regulate the supply of tokens for much more lively transactions.

Pokemon Go

member

Activity: 336

Merit: 10

which determines good or bad tokens not the amount in circulation supply of tokens, but from platforms and teams, if the platform is good and the team always supports investors, I am sure the tokens will be good and prices will increase, so determining the good or bad tokens is the token platform and team not the amount in circulation supply of tokens.

marufnang

sr. member

Activity: 728

Merit: 250

Well obviously with the smaller amount of supply, there will be a big chance for the price of the coins to be higher, but that will be depend on the demand of the market, even though the supply is limited if the demand also low, then the price won't be able to rise significantly.

micle222

sr. member

Activity: 784

Merit: 255

If the price is low and the total supply is small, one day the price will be very fast.
If we understand the system, creating coins so much is so that the future can be used and future use is evenly distributed.

Phil419She

full member

Activity: 346

Merit: 100

BitSong is a dcentralized music streaming platform

I think if there are a lot of supplies of the coins and the circulation is low, that may be bad for the coins. It just shows that the coins are not that important in the circulation at all.

Topic: Lower circulating supply of tokens, It is good or bad? (Read 524 times)