Topic: Really Burn helps Token in positive way? - page 4. (Read 796 times)

The theory is right but the problem with these projects is that, burning is just a gimmick to convince the investors, the fact is they generate billions of coins in circulation and once the price reach a certain valuation with the help of market manipulation and pump people would jump in and once the market sees a correction they would advertise that they are burning the token to maintain the hype and that might not help the token if the overall market sentiments are not in their favor.

  in todays world many project sucessfully manipulate noobs player for the hype burned coin which is most of them dont hit circulation, aka non exist. the chain build for this hype
people think decreased total cap, will push price up, this shit show still going till this day and quite effective, the only real burn mechanism is like eth that burned tx fee from transaction, technically they decreased total coin circulation by burning from fee, but as you know they printing via staking. some project burned the coin from fee/tax in transaction which is this the real burning mechanism. please educate yourself about "burning shit show" or you may want burned you holding? . nobody want burned their stash.

We all know that Shiba Inu is a meme coin, and its supply is very high in trillions, so a little burning won't have a significant impact on its price. However, we can speculate that there might be some long-term effects with certainty. Still, we cannot be entirely sure. Burning alone won't necessarily lead to a price hike; the project must have the potential to rise. If the project has potential, burning might positively impact the price, but if there is no use case for the project, burning won't make much of a difference. Having fewer supply coins does increase the chances of achieving a higher price, but it's essential for the project to have a meaningful use case as well. I will also say that in the crypto market, any coin can experience a pump or dump at any time.

Not exactly. Burning only helps if the supply isn't huge. For a token like Shiba Inu, it's going to take a long time for us to see positive results. The circulating supply is still enormous. You need to keep in mind that burning is not a guarantee a cryptocurrency or token will become very valuable in the future. I've seen some coins with a burn mechanism, only to be worth a few cents in USD. That's because they lack mainstream demand compared to other players with a higher supply.

It's all about utility to make a coin preserve its value for generations. At least, Shiba Inu is off to a good start. Who knows if the constant burning of tokens will propel SHIBA to $0.01 in the future? Just my thoughts

Its true burn help coin to show they are potential project mostly coins are that people are sold but they are still in same price and they haven't any effect about people leave project but truth is that people see that type projects so they want to invest this one ..

Just one factor but I'd never see how effective it was when it was applied to other projects. We can see it was good for Shiba Inu but generally, it was hyped that made the price hike due to the influence of EM which cause a price source. But looked, once it was done, the price has gone low again. And this will tell us that the burning strategy means nothing and it was not sustainable. That is why I don't give a thumbs up and I don't believe what these developers are saying _burning to increase price_that was a trick.

The burning mechanism is just one of the factors that will help one token in a positive way, Shiba Inu is doing well not only because of the burning mechanism but more so because the community is still hyped on MEME coin brought by Elon Musk pushing of Dogecoin, and it so happens that Shina Inu launches on the right time, the burning mechanism is only good if there are community support and the project and its platform have a use case, we have seen other tokens concentrating on their burn mechanism but they ended up as a scam and shit coin.

Do not just rely on a burning mechanism it's easy for a contract-based token to implement a burn mechanism but they should also have something to offer to the community so they can last long in the market.

Off course I had seen many token which gain a hype with having burning tokens regularly, I have seen a token named Tdox which were continuous token. This means that there will be a less supply in order to buy more and more, then the token can gain easily a better hype.

Burn only help the token price increase, but it will not make the market cap increase because the formula of market cap is circulation supply x token price. But with the token price is increase, it should be expected people will buy the token and hopefully make the market cap increase too.

But it's just a short term effect since the total supply is unlimited.

As far as I know, burning brings positive impact since it reduce the number of total supply. It triggers an increase of the price/value because the circulating supply probably will be lower than usual against the demand. Moreover, it will increase faster if there are bigger demands and hype after the burning steps. So far, I don't see a negative impact of the burning steps. Can you tell me what the negative impacts are?

However, for meme coins or shit coins, it can bring no significant impact. If the coins have no demands after the hype is over, the decreasing of the total supply will mean nothing. Whatever the number of the tokens, it won't be very helpful when there is no demand anymore.

Lesser supply, more demand = increase in price. The famous basic economic law that scammers are using.

The famous project that's being token burn is Binance who have been doing this for years already until they reach the total supply of I think 100,000,000 coins. Most of the time, I'm hearing this term "token burn" in some meme coins, and shitcoins out there who are using that term just to attract new investors. On the other hand, investors think that if they buy earlier, the supply will slowly decrease thus increase it's price. The problem with this token burn is that, there's no assurance that the demand will stay the same if they lessen the supply. It's kind of useless if you decrease the supply, but the demand is low. For sure price will just go down even more.

This is very different from Binance Coin since it has a huge demand, and with the supply slowly decreasing, the price might increase in the future. As for Shiba Inu, the supply is very huge that a small token burn would have little to no effect towards the price of it. Is it helping them? Price-wise, not so much, but if they will do it in the long term, and the demand stays the same then their might be a difference in price..

There is no dependency of token burning to surge or spike after its supply's has been reduced, there could be some chances that after burning the token if the team do not add liquidity to project it would still remain the level at which it is. There are some token and coin that has been burned since there is nothing much depending in the market they still do not make any progress and after which, development is what really give spike to a project increase dramatically without any limitations of price or not, that is right because some project with huge supply keeps making waves in the market and price are pretting dancing well in the market without undermining to total supply. Most of us here alway had this orientation that whenever a token is burned there comes a price increase, although this could be true but if they project own do not add a reasonable amount to that project I don't think if that project could make a move by adding some percentages.

The lesser the supply the higher the price would be on a particular token and considering that SHIB does have that huge supply then it would really be just that normal that value would be lessen but in general sense it would really be just still that same because even if the supply is low the price is huge in terms of value or digit but it would really be just the same if we do speak about those huge ones.
Huge supply wont really be that an issue if a particular coin or token would really be having that actual utility on which means that demand would be there and investors would really be stashing up these
coins no matter how big the supply is. It is really just that this thing isnt only applicable on SHIB itself but in most coins in the market, burning mechanisms is something that would really be that
relevant on each project and does give out that kind of impression that they would really be pumping their price.

well honestly when we are talking about ethereum its among the most effective ones in burning the total supply to keep their circulating supply from getting overflowed.
as a result, this coin has been going up ever since and the main factors that could make this coin having burn mechanism that really effective is also the fact that this coin have massive demands generated from its utility being the most used smart contract and the fact that the gas fee quite high meaning many would stack some ethereum for the sake of interacting with smart contract prominently the dapps.
ethereum is just different compared to other altcoins in this case, its just too good despite the fact that its quite expensive.

The answer is given already and it can help the supply less and also by doing this it can also create demand. So when the supply is less then the demand is high for that action or other things they do the price would provably up that's why its also good to participate to those project who always have burning solution to their increasing supply since this could really be a big help to their project to get a good boost especially when people losing an interest since the price is declining so bad.

But also remember that this scenario not always happen since there are scam tokens who do this just for hype and to scam people.

Hello there..
Basically, token or coin burning aims to reduce the amount of supply circulating in the market to be smaller. Well, in theory, this makes sense, because it is hoped that it will attract more and more interest from old and new investors to invest in these tokens or coins. However, an investor usually also pays attention to the amount of token supply, if it's too much, then this will also have an impact on sales, right? Just imagine if there is more supply than demand, this will end in a token drop significantly and it will be difficult to go back up.

However, if token burning is held, the supply can be greatly reduced, this will make the number of token supply even less, so that the less token supply, won't it reduce the gap between demand? What's more, usually if there is a token burning, then investors can be more confident if the token can rise again, at least they are not too worried because the number of tokens is very large.

But again, this will also depend on what kind of token or coin it is. However, many shit coins or shit tokens also do this but still can't go up again or have high potential. because not all projects that do token burning can really optimize their potential, even just a matter of burning it without doing anything else that can strengthen the project. It will still be shitcoins.

It works for some projects but not all that promise an increase in its price went perfectly, many are still low and have no changes. That is why we can't blame people for saying that is not an effective way for changing the view of a particular project because if that is a shitcoin/s, we couldn't really expect such thing as "pump" but what we probably see is that the project will stay low and worthless and investors remain don't have the courage to buy them.

It all lies on the potentiality of the project, not the total market supply. In fact, ETH can prove it.

In theory, burning could help to make the supply smaller and could lead to better price growth because with less supply, scarcity will occur and purchases will be more expensive.

But things like this will only happen for coins that are really worth it but when it comes to meme coins or shitcoins burning is just like a figure of speech and seems like nonsense because regardless of whether there is burning or not I think in this case we already know how the continuation will happen because in the end coins like that can only develop with a pump and dump system so no matter how much burning is done for shitcoin and memecoin it will be useless because there will be no impact and it is just a strategy to make it seem like the coin is alive.

The law of supply and demand will always be right, it will not deviate from those two things. Burning tokens that are carried out also aims to reduce the supply of tokens which results in price increases because everyone will say the supply is decreasing and getting less. this is a marketing trick to increase the positive token price, where the circulating supply decreases. The Shiba Inu are a true example of the crazy rise when it comes to Burning their tokens. But it also depends on how the community is owned, if the community is solid and continues to be active then it can develop, but the community is small and not solid, it will only end up being abandoned.

Its the process of permanently rendering tokens worthless by removing them from circulation. Do I have your attention yet? I cant imagine somebody voluntarily doing it.

In a counterintuitive turn of events, token burning can boost the value of unspent tokens. As the quantity of tokens diminishes (through tokens being burned), the value of the remaining tokens may increase, assuming demand remains constant or grows.

Aggressive burning can be used to keep or improve the value of Shiba Inu or any other token. However, keep in mind that this is merely one tactic among several used in projects. Success or failure depends on many other variables, such as the state of the market, the strength of the project's foundations, the level of community support, etc.