Topic: Really Burn helps Token in positive way? (Read 796 times)
in the long term, this is, of course, a working tool to reduce the total number of coins or tokens in circulation; the fewer there are, the easier it is to raise their price, which is also important. But this will most likely work more with large projects that are aimed at long-term work and have profit for redemption of tokens.
depending on burning the token, if it only burns a little but the total token supply is not comparable, there will be no change or movement in the volume. There are several projects that I see that are just marketing tricks to attract investors, so you have to be careful in looking for clear information about the project
Exactly.
Those legitimate projects will be helped by burning their tokens and that's going to be visible through their value and pricing. But for the tokens that don't even have a sense to own, they won't just get the attention and help from their own markets.
It is wrong to think that when a project, like any project does burning, the value of their token will increase. No. It doesn't go like that, there's a market explanation that it is not like what people are thinking.
We have numerous projects in the market and we might never know which of them are abandoned and the ones that are promising for good road map. We just have to apply our techniques towards these tokens and balance in well structure spot to triggered investment in these tokens. We have legitimate projects in the market that's waiting patiently for the bull season, and some might not also survive the bear season. Burning of these tokens are done for the aim to pump the coin to the moon, probably one of the few ones will be targeted by top whales and some will not make it up to the list. Those legitimate projects will be helped by burning their tokens and that's going to be visible through their value and pricing. But for the tokens that don't even have a sense to own, they won't just get the attention and help from their own markets.
It is wrong to think that when a project, like any project does burning, the value of their token will increase. No. It doesn't go like that, there's a market explanation that it is not like what people are thinking.
That is not true because there are ways to find out a project is abandoned or not. Just look at their social media and their github commit. If they are active in the social media with various events and update they are active and if their github repo has frequent commit, then the dev is still working in the project. These are some good signs that can give us confirmation that the project is not abandoned. Another thing you can keep an eye on is their partnership update. A active project frequently updates their community with partnership announcements.
Exactly.
Those legitimate projects will be helped by burning their tokens and that's going to be visible through their value and pricing. But for the tokens that don't even have a sense to own, they won't just get the attention and help from their own markets.
It is wrong to think that when a project, like any project does burning, the value of their token will increase. No. It doesn't go like that, there's a market explanation that it is not like what people are thinking.
We have numerous projects in the market and we might never know which of them are abandoned and the ones that are promising for good road map. We just have to apply our techniques towards these tokens and balance in well structure spot to triggered investment in these tokens. We have legitimate projects in the market that's waiting patiently for the bull season, and some might not also survive the bear season. Burning of these tokens are done for the aim to pump the coin to the moon, probably one of the few ones will be targeted by top whales and some will not make it up to the list. Those legitimate projects will be helped by burning their tokens and that's going to be visible through their value and pricing. But for the tokens that don't even have a sense to own, they won't just get the attention and help from their own markets.
It is wrong to think that when a project, like any project does burning, the value of their token will increase. No. It doesn't go like that, there's a market explanation that it is not like what people are thinking.
In some way we can say token burn helps, but you can only see the effect of this burn only on tokens that has potential and is relevant for continuity in the crypto space, any crypto currency with out a future does not feel the impact of token burn and often use it as a stretegy to collect more money from investors as they promise to burn huge part of the supply, even at the very burn their is still no effect or good result the price still remains the same or even dip more as the demand of the coins is still no good to make a pump.
Where else, token burn plays huge part in some crypto currency as immediately their is a burn you see a huge pump so those who entered before the token burns makes good profit that is why it is now deployed by most shit coins with the sole aim to scam more money from investors.
Where else, token burn plays huge part in some crypto currency as immediately their is a burn you see a huge pump so those who entered before the token burns makes good profit that is why it is now deployed by most shit coins with the sole aim to scam more money from investors.
It will only help if the token itself has some solid use case that can survive with the competition.
But if they will rely in the burning aspect of growing its use case, then I think, it will easily go down later on.
Exactly.But if they will rely in the burning aspect of growing its use case, then I think, it will easily go down later on.
Those legitimate projects will be helped by burning their tokens and that's going to be visible through their value and pricing. But for the tokens that don't even have a sense to own, they won't just get the attention and help from their own markets.
It is wrong to think that when a project, like any project does burning, the value of their token will increase. No. It doesn't go like that, there's a market explanation that it is not like what people are thinking.
It's all about supply and demand. Reduce the supply demand goes up along with the price. but you gotta annihilate a chunk large enough to really shake things up. and otherwise its just a drop in the bucket that no one notices. So maybe we just need more bonfires going to make coin-burning actually do something. Though at some point destroying all the coins defeats the purpose don't it? Gotta strike a balance. But at the same time, it doesn't matter how many coins you burn if there is no demand. Many shitcoins nowadays use the burn process as a marketing ploy, to attract more attention from the community. Many of them fail because at the end of the day, they are still shitcoins.
they are shitcoins, and with low demand at that, if it was shitcoin that was fancied by so many peolpe like for example some meme coin like doge coin that have burning plus gettinh shilled by elon then the burning would be massive despite just a shitcoin, its matter of demand, the point of burning is that, so it could double the existing value of certain coin due to high demand and limited supply but that won't work with coin that not many truly demanded like shitcoin without community, etc.and indeed so many shitcoins are just using it for marketing ploy, trying to give that image of scarcity, but people with normal mind will definitely know at first glance that the burning of these shitcoin with low demands doesn't mean anything.
Investors and holders who don't know about burning mechanism, demand burning as if token their invested altcoin will skyrocket after that but the process isn't working thus way. But after announcing burning, people start investing that altcoin and so price get increased. It depends of that altcoin how they'll take manage to take advantage throughout this process. Although memecoin with huge supply, burning are different, it Doesn't impact but team create hype by themself based on burning news. Shiba buring doesn’t really Impact but after burned shiba inu from vitalik buterin, effected a lot on its price which is rarely happened
The burning mechanism can help a token to become strong and withstand bear if this seems to go wrong. Some many tokens that is built on Proof-Of-Stake need to be burn or else the worse might happened. There are many crypto projects that is been built on Proof-Of -Stake and the only thing we can do to help the projects is to keep staking it apart from buying and holding. This help the liquidity of the token to be strady and keep going bull if there is no mass selling or dumping.It will only help if the token itself has some solid use case that can survive with the competition.
But if they will rely in the burning aspect of growing its use case, then I think, it will easily go down later on.
This is why most meme tokens have short lifespan because they have no reason to exist to begin with.
They are only relying from naive traders that will join their market and hoping that at some point they can cash out from it.
If you are afraid to risk your money in such tokens, then do as I did. My opinion is that it is better to invest not your own money, but those that won for example in Cash Giving Day tournament there the conditions are very simple and everyone can get a small amount for future investments
I have thought of other things on this one when you have said that people shouldn't invest with their own money. Well, I've thought of investing others money but no. It's better to invest only with your spare money from wherever it come from. Not everyday there are tournaments and not everyone is able to participate into these type of tournaments and that's why they don't have that type of money but if it's about the spare, many of us do have.
If you are afraid to risk your money in such tokens, then do as I did. My opinion is that it is better to invest not your own money, but those that won for example in Cash Giving Day tournament there the conditions are very simple and everyone can get a small amount for future investments
Investors and holders who don't know about burning mechanism, demand burning as if token their invested altcoin will skyrocket after that but the process isn't working thus way. But after announcing burning, people start investing that altcoin and so price get increased. It depends of that altcoin how they'll take manage to take advantage throughout this process. Although memecoin with huge supply, burning are different, it Doesn't impact but team create hype by themself based on burning news. Shiba buring doesn’t really Impact but after burned shiba inu from vitalik buterin, effected a lot on its price which is rarely happened
The burning mechanism can help a token to become strong and withstand bear if this seems to go wrong. Some many tokens that is built on Proof-Of-Stake need to be burn or else the worse might happened. There are many crypto projects that is been built on Proof-Of -Stake and the only thing we can do to help the projects is to keep staking it apart from buying and holding. This help the liquidity of the token to be strady and keep going bull if there is no mass selling or dumping. Hi,
Some How this Burn Buzz word stuck in my mind and i didn't see practical results so far in any successful token.
For example, Shiba Inu is burning tokens aggressively and is it really helping them?
May be i am noob here and happy to hear from experts!
I believe this topic will be useful for someone too!
Some How this Burn Buzz word stuck in my mind and i didn't see practical results so far in any successful token.
For example, Shiba Inu is burning tokens aggressively and is it really helping them?
May be i am noob here and happy to hear from experts!
I believe this topic will be useful for someone too!
Token burn will take some token out of circulation. This has two effects on the community one is that investors consider it positive news and rush to buy the token so that they can make profits from the price impact. Another effect is that some token will stay out of circulation forever so the token holder will get a higher value when holding the same amount of token because the amount of token decreased from circulation but its marketcap doesn't. So the price needs to be adjusted accordingly which shoots the price up.
You are asking about the burn buzz word and how it affects successful tokens. Shiba Inu is burning tokens a lot but it is important to know that token burning can effect in a different depends on the project and its goals.
Token burning means they are just want to reduce the supply or you can say the number of tokens. And one more purpose to butn the tokens is to increase the demand by shorting the supply.
But some of the tokens or coins which gain up trend in process by burning. As I mentioned above this is on the project, how much it is strong and why they are burning tokens.
You gave an example of Shiba Inu they are burning much tokens but I didn't see any significant gain in Shiba. If they are burning so I think it's price should increase but it is not increasing and I think the reason is too much supply of the tokens. Still they are burning let's see what will happen in future.
Token burning means they are just want to reduce the supply or you can say the number of tokens. And one more purpose to butn the tokens is to increase the demand by shorting the supply.
But some of the tokens or coins which gain up trend in process by burning. As I mentioned above this is on the project, how much it is strong and why they are burning tokens.
You gave an example of Shiba Inu they are burning much tokens but I didn't see any significant gain in Shiba. If they are burning so I think it's price should increase but it is not increasing and I think the reason is too much supply of the tokens. Still they are burning let's see what will happen in future.
It's all about supply and demand. Reduce the supply demand goes up along with the price. but you gotta annihilate a chunk large enough to really shake things up. and otherwise its just a drop in the bucket that no one notices. So maybe we just need more bonfires going to make coin-burning actually do something. Though at some point destroying all the coins defeats the purpose don't it? Gotta strike a balance. But at the same time, it doesn't matter how many coins you burn if there is no demand. Many shitcoins nowadays use the burn process as a marketing ploy, to attract more attention from the community. Many of them fail because at the end of the day, they are still shitcoins.
I think burn helps somehow but Its all about that token or the coin which is gonna burn. It depends on that altcoin's quality, market demand and manay thing. Burn won't help you team burn a shitcoins cause it has no demand. And how a token could pump if nobody willing to buy that token? But if it comes to potential altcoin, price will pump after announcement of burning. Cause it doesn't matter how burn mechanism work but people will crazy buy that potential altcoin which could be reason behind pump. Something influencers also promote and do burning announcement for pumping token thus way.
some shitcoin devs could be burning 99% of their total supply and it won't change a thing because its a shitcoin that doesn't have demand but its different if its ethereum that burns 50% of its total supply the value would be instantly doubled, thats the thing with burning, it requires the coin to be at least having sufficient demands first before it actually can works.as of now, I rarely see some devs burning coins though I don't know why it was massive marketing strategy back then when many shitcoin was still a thing and get invested heavily, the devs trying to make this sense of scarcity that could make people eager to invest in their shitcoin but later on losing so many of its value.
in a nutshell, its not really a effective marketing strategy anymore.
Burn is meant to reduce the total supply which should in return (maybe not instantly) influence the price of the token. Maybe the reason why you haven’t seen any results so far is because the project involved didn’t burn enough. Imagine if Bitcoin could be burnt and 10 Million Bitcoin gets burnt, the value of the remaining ones will increase because then, they are the last of their kind. But what difference does it make when you burn just 1BTC ? So the amount of tokens/coins burnt has a lot to do in the effect of the burn. Also, you can liken burning of tokens/coins as burning of actual money because these are tokens/coins you could have sold and cashed out, but then, it’ll continue being in circulation.
I think burn helps somehow but Its all about that token or the coin which is gonna burn. It depends on that altcoin's quality, market demand and manay thing. Burn won't help you team burn a shitcoins cause it has no demand. And how a token could pump if nobody willing to buy that token? But if it comes to potential altcoin, price will pump after announcement of burning. Cause it doesn't matter how burn mechanism work but people will crazy buy that potential altcoin which could be reason behind pump. Something influencers also promote and do burning announcement for pumping token thus way.
The main intention of token burning is to reduce the supply. Ideally, when supply is reduced, demand increases automatically, and thus the price. Having said so, this will work only when demand is appropriate. For example, if a token has a demand of 2–3 million tokens and the tokens left after burn are in billions, there is no effect. Just knowing the logic, people are thinking that every burn will help increase the price, but in most cases, this is not the case.
Actually buring mechanism works in different way than most of people think. As a Result, "news of token burn" create a hype which effects on people mind in positive way. If a token doesn’t have any market demand of investment, then burn can do nothing. When a project want to create bazz, then they use this strategy for people to attract. But if a token always has market demand and team burn their token then Supply will be reduced and token pump. vitalik buterin burn was biggest and most aggressivw for shiba, which made shiba pump. If anyone can do such aggressive burn (must be a potential demanded altcoin), then that will be also pumped, in my opinion
The exhilaration felt by the market after burning tokens. Amidst the fervor of excitement, a considerable number of people fail to pause and evaluate the fundamental dynamics. If there is no real market demand, a burn is like shouting into space. While many ventures try to make a splash with burning, astute investors need to see through the pretense. In addition, the Buterin maneuver was brilliant when it came to burns. However, it begs the question: Was it just the burn, or was there a confluence of timing, market emotion, and demand?Comparatively speaking, if a new token joins the fight and tries a burn like that, you should carefully examine its underlying components. A burn-driven pump is one thing, but keeping that momentum going is a whole other animal. The important things are underneath the surface: long-term prospects, project feasibility, and underlying value. While burns may pique curiosity, substance assures longevity.
Burning of a token is very important especially when for tokens that are using the staking mechanism. Many projects are always burning there tokens so that it will have more value in the market. Apart from that, we all want to make money from the market with good profits. The burning mechanism is based on the team and how frequently the burn there token to make it have more resistance against the bear and shoot higher more.
As much as it's important, there are times that it didn't do anything to some of those projects that have done it. Well, that's for those projects that have little market capitalization and liquidity. Even if they will burn their tokens for as much as they can if there is no demand, the value of their token remains the same or might even go lower. That's why doing it frequently is like a promo for them to inform everyone that they're doing it to the token so it's going to be interesting. It's helpful but not to all that does it.Jump to: