Topic: Really Burn helps Token in positive way? - page 6. (Read 796 times)
In addition to burning, you also need the necessary demand. Burning coins by itself does not guarantee anything. It may just be one of the marketing ploys to lure investors. It is important to consider at what rate the coins are burned. If they are burned at a much slower rate than how inflation in the token itself grows, then the burn in such a cryptocurrency doesn't matter much. Something similar can be observed with the LUNC cryptocurrency.
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!
Not all of those tokens and projects that burn their supply are successful. As you've said, it becomes a buzz word whenever there is an announcement from any token and project that they're going to burn supply. Some of those are lucky to have a strong community and any news that they release to their community are being bought by their investors. But as I have said, not all of them are the same and even with halving or burning, not all gets the attention. 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!
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?
It's not really helping them. How big the impact from the burn totally depends on its mechanism. I took two different examplesSome 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?
1. BNB burn mechanism
BNB burn used profit raised through operating its product to buy back the tokens from the market. This is also pushing the circulating supply to be even less than before. It was giving huge impact to the price caused by binance has active product that was regularly generating profit for the burning purpose
2. Meme token burn mechanism
Meme token used tax mechanism to burning its token but this is only fooling investors caused by the burn generated from giving tax for any transfers that interact with the meme token smartcontract.
This burn mostly used by stupid dev who didn't evne understand about the product.
May be i am noob here and happy to hear from experts!
I believe this topic will be useful for someone too!
I believe this topic will be useful for someone too!
Shiba doesn't really burning its token. The biggest burn of shiba came from vitalik butterin.
I think that burning may have both positive and negative effects depending on the case.
In short, I see aggressive burning as negative, but steady burning as positive.
Many other factors should be counted in too. One unusual factor is that the purpose of burning may be an initial distribution of a new token. For example, we did this for Blacknet around 2018.
In short, I see aggressive burning as negative, but steady burning as positive.
Many other factors should be counted in too. One unusual factor is that the purpose of burning may be an initial distribution of a new token. For example, we did this for Blacknet around 2018.
Burns can have a positive impact on crypto tokens by potentially reducing the token's supply, which might increase its scarcity and value in the market. However, the effect depends on various factors and the overall dynamics of the specific token's ecosystem.
Burns doesn't need to supply a successful project they keep their development process moving and attract investors. If the total amount of tokens of a project is high then i think the burns system will not work. Moreover token reduction of good projects is effectively positive. Also, many project gona to scam like this system, so that's why you have to be careful and stay away from such project.
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 on Meme coins is a complete a hokum to trick user that the token price will increase by decreasing supply while they set the initial total supply to abunch of tokens.
Token burn is good for tokens that has a real utility to gain profit that will be use to commit buy back on the circulating supply tokens but token burn on meme coin is useless since meme coin doesn’t have any real utility to gain profit aside from the investors money that being use as liquidity for the token.
Burning works on the premise that there is actual demand. It's probably not working for a lot of projects because they also have to create or manipulate the demand for the token. They often advertise aggressively by creating hype all over social media and offering new features that may or may not be useful at all. Methods like that are only good for short term.
Burns can have a positive impact on crypto tokens by potentially reducing the token's supply, which might increase its scarcity and value in the market. However, the effect depends on various factors and the overall dynamics of the specific token's ecosystem.
In theory, that means making the supply less, and when the supply is low but the demand is high, the price of that token will be worth more. But for a token or coin to increase in price, there are many factors, it will not depend solely on the burning of coins.
In my opinion, you should only consider this factor for large projects, projects that have use cases like ETH or BNB, it will be really helpful in helping push the coin price. But when it comes to memes and shitcoins, burning won't work because their value like Doge or Shiba depends on shark manipulation.
In my opinion, you should only consider this factor for large projects, projects that have use cases like ETH or BNB, it will be really helpful in helping push the coin price. But when it comes to memes and shitcoins, burning won't work because their value like Doge or Shiba depends on shark manipulation.
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!
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