Generally, burning tokens usually have different goals. One of them is the increase in the value of coins, burning tokens increase the demand for them. The next reason is to prevent the devaluation of coins, such actions make it possible to maintain the quotes of tokens at the right level.
Recently investors are interested in the further fate of tokens not sold after the end of the ICO. If a project burns tokens, then the likelihood of the project fulfilling its obligations to the investor increases, because burning coins creates favorable conditions for the growth of tokens in the future, because it is very important for those who invest in promising projects in their opinion!
Topic: Token burn (Read 316 times)
Tokens with excess supply are burn to instantly limit the total token supply . When the supply get lower and demand remains same or increases it means the token will increase in value . This is one of the major reasons tokens are burn .
Hi guys, I noticed some projects use to burn their token after ICO or after listed on exchanges.
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
Based on what I know about your question: What's the advantage and disadvantages of burning token is that I think the purpose of burning the token is to have fairness to the investors who bought the initial token in token sales. If they still use the remaining token, it will be unfair for the investors.
I is a strategy when they see not much movement with the value of their coin.
It is a basic one and used much. Burning tokens to simply make it larger in value because of supplies.
Since there is no buyer or its rank is going down they will try to change that to be seen again by investors or traders.
It is also a good preparation until the developers unlock their tokens.
Of course they will dump it afterwards making a lesser value of it.
Well they are in profit at that point.
It is a basic one and used much. Burning tokens to simply make it larger in value because of supplies.
Since there is no buyer or its rank is going down they will try to change that to be seen again by investors or traders.
It is also a good preparation until the developers unlock their tokens.
Of course they will dump it afterwards making a lesser value of it.
Well they are in profit at that point.
Token burn always have posiyive effect on the market because the lower the supply the higher the demand and when you have higher demand it tends to inflate the price.So is good for the market.
Burning a token means that they are reducing the total supply of that particular token making its value increase.. with this the token will be scarce and be in demand
By burning the tokens you make them more scarce and thus it should normally increase the price and the market valuations on the exchanges if the tokens are listed.
I think this is strategy always use by many project to make investor to interest withe their token because like other member said when the supply is decreased and demand of this token increase we will see that the price will growing up. But this depend on holder because when the hodler see price is up maybe they would sell their token and this can cause the price drop again. So they must do another strategy to make price would be stable.
I don't know much about this but as I think token burn will make total supply amount of token decreased and it's also mean that price of token will increase but sometime it'll not happen as develop team hope 
). There are so many tokens which burned but price kept falling all the time ). It's also a good way to create a pump but it still depend on quality of project behind.
). There are so many tokens which burned but price kept falling all the time ). It's also a good way to create a pump but it still depend on quality of project behind. Hi guys, I noticed some projects use to burn their token after ICO or after listed on exchanges.
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
To my best knowledge. Token burn is a means of reducing the total and circulating supply of the token, to help the value of the token increase in the market.
Hi guys, I noticed some projects use to burn their token after ICO or after listed on exchanges.
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
To my best knowledge. Token burn is a means of reducing the total and circulating supply of the token, to help the value of the token increase in the market.
Well, at this year due to market condition some ICO project has insufficient funds makes it unsold token which most investors are running out of investment due to losses of capital. This will come out in an agreement of token burn which it mostly decided by the team owner to reduces the supply allocation to make the value of token more expensive.
I think this is done when not all the tokens were sold as planned by the ICO, they cut the supply to revalue the token automatically, because if you cut the distribution the price will increase because it becomes a token of little circulation, similar to what happens with bitcoin to have a limit set.
Token burning was initially a way for projects to deal with inflation (well, crypto's version of it).
Basically, you have way too much supply than there is demand so you get rid of some of the supply.
The effect it has is that it can increase the value of each token since there is a more limited supply.
Now, it has become customary for basically all ICOs to go through the burning process if all coins are not sold/distributed.
The thing is, this doesn't automatically guarantee that the price will increase.
A lot of ICOs arbitrarily set their max coins and generate a ridiculous amount of tokens.
It's like they think they can create value of thin air, which, of course, is impossible.
Then, just destroying some isn't going to magically bring the price up either.
Unless your project and coin has a specific real use that brings demand organically, you can burn all you want but it won't change anything.
Basically, you have way too much supply than there is demand so you get rid of some of the supply.
The effect it has is that it can increase the value of each token since there is a more limited supply.
Now, it has become customary for basically all ICOs to go through the burning process if all coins are not sold/distributed.
The thing is, this doesn't automatically guarantee that the price will increase.
A lot of ICOs arbitrarily set their max coins and generate a ridiculous amount of tokens.
It's like they think they can create value of thin air, which, of course, is impossible.
Then, just destroying some isn't going to magically bring the price up either.
Unless your project and coin has a specific real use that brings demand organically, you can burn all you want but it won't change anything.
Token burn is a good tactic in order to give value to a token. The reduction in the total supply of any coin will surely increase the price of the coin. Aside token burn, we also have buy back that is meant to serve same purpose just like token burn.
It is just a psychological tactic just to get investor confidence and trust, by doing so the team confirms that it is not holding the unsold tokens, if the team keeps holding the unsold tokens the team will be blamed everytime token price dumps because team in such scenario is holding huge supply of tokens and they can manipulate the market but personally i think that no serious project will like to do that.
Hi guys, I noticed some projects use to burn their token after ICO or after listed on exchanges.
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
burning tokens lowers the total supply For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
the less supply the more demand and that increase the token price
I think token burn has 2 parts
1. It can be a plot to reduce circulation supply of a token Nd in the process cause a pump and big price in value of item
But suddenly after the pump it will be reduced and cause a great loss to investors
Similarly with project of good quality, it forces dumpers to sell and leave the remaining tokens for real value and utilization
The choice is ours o
1. It can be a plot to reduce circulation supply of a token Nd in the process cause a pump and big price in value of item
But suddenly after the pump it will be reduced and cause a great loss to investors
Similarly with project of good quality, it forces dumpers to sell and leave the remaining tokens for real value and utilization
The choice is ours o
When token is burn the amount of token in circulating will reduce but as far as nobs it is not a good coin it doesn't have any specific use case wondering the reason it was launched initially.
There 2 types of token minting. The first mint all tokens at once and then burn unsold. And the second one - tokens mint after ICO ens and all calculation done
A token burn after an ICO is done to attract investors. If they know that unsold tokens are burnt investors could be encouraged to invest more to get a larger share of the remaining tokens in circulation.
A token burn is equivalent to the token generators giving proportional tokens to all investors if they haven't reached their max cap.
A token burn is equivalent to the token generators giving proportional tokens to all investors if they haven't reached their max cap.
Correct me if I'm wrong, but I think it's mainly to increase the price(due to lower supply) in a non-organic manner. And it looks like their plan is working as expected:
Source: https://coinmarketcap.com/currencies/no-bs-crypto/
Source: https://coinmarketcap.com/currencies/no-bs-crypto/
Not so long ago, these tokens in my wallet was $ 7, if I'm not mistaken, and then the price rose sharply to 16. So the burning of the coins had that effect. So in fact, this fact has a positive effect on the market price.
This is known as deflation model.
With burn token supply decrease and lesser the token supply, more the demand will increase price.
I agree, exactly what I wanted to say. The deflation model is best to get out of bear market and into bull marketWith burn token supply decrease and lesser the token supply, more the demand will increase price.
Token burning usually done to lessen the supply so the demand would increase. That causes hype for that coin and possible to reach another price level but not all those tokens that conducts token burning is doing good. Like that no BS crypto, the name seemed to be invented without any hesitation and just to make a coin that will make its devs earn some money. Whether they'll burn their tokens or not I don't think that coin is going to be something.
Hi guys, I noticed some projects use to burn their token after ICO or after listed on exchanges.
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
The idea is that miners/participants should show proof that they burnt some coins i.e., sent them to a verifiably unspendable address. This is expensive from an individual point of view, just like proof-of-work, but it consumes no resources other than the burnt underlying asset. For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
This topic should be moved to the Altcoin section where it belongs.
It's a bitcoin discussion here!
It's a bitcoin discussion here!
This is a normal procedure. "Burning" means eliminating existing tokens from circulation. Many projects doing this by sending them to a non-existent address - for example: 0x0000000000000000000000000
The security is that such tokens are not recoverable, because no one is able to generate private key to this address.
The security is that such tokens are not recoverable, because no one is able to generate private key to this address.
there is no logical reason for burning tokens in this large scale for any project. in fact when some token is doing this it only shows that they had bad plans and had no idea what to set the supply at so now they are left with a huge amount which they don't know what to do with, so they burn some of it.
but realistically burning tokens is done for publicity and to make people think the scarcity of the token is increasing so the price should rise. sometimes it works too and a pump takes place as they pull this shenanigan. another reason why they do it is because they are left with a huge amount of token which they can not do anything with. they can't sell because the market will be annihilated, they can't use because it is useless so they burn some so that they can get something out of it at least.
but realistically burning tokens is done for publicity and to make people think the scarcity of the token is increasing so the price should rise. sometimes it works too and a pump takes place as they pull this shenanigan. another reason why they do it is because they are left with a huge amount of token which they can not do anything with. they can't sell because the market will be annihilated, they can't use because it is useless so they burn some so that they can get something out of it at least.
With a name like no bs crypto I would guess it's a shitcoin. However wagerr does decentralised sports betting directly from their wallet and some profits received by their nodes are burned, so price will increase over time
This is known as deflation model.
With burn token supply decrease and lesser the token supply, more the demand will increase price.
But you have to say also that the burnt token after a short rise will lose its value a while because supply will be far more than demand. Everyone is selling to collect fast gain. With burn token supply decrease and lesser the token supply, more the demand will increase price.
Hi guys, I noticed some projects use to burn their token after ICO or after listed on exchanges.
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
Burning the token will reduce the number of tokens circulating in the market, the equivalent of scarcity, but not the scarcer will be more valuable! For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
This is known as deflation model.
With burn token supply decrease and lesser the token supply, more the demand will increase price.
With burn token supply decrease and lesser the token supply, more the demand will increase price.
yup its a strategy to deflate the price, since the price is dictated by the law of demand and supply so the more supply the lower the price the lower the supply the higher the price, and ive seen some startups doing this to increase market penetration, i see nothing wrong about though.
The BNB token actually completes a token burn every quarter...
Correct me if I'm wrong, but I think it's mainly to increase the price(due to lower supply) in a non-organic manner. And it looks like their plan is working as expected:
Source: https://coinmarketcap.com/currencies/no-bs-crypto/
Source: https://coinmarketcap.com/currencies/no-bs-crypto/
Hi guys, I noticed some projects use to burn their token after ICO or after listed on exchanges.
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
For Example. I got the news on No Bs CRYPTO (Nobs) burning their 75% of the total supply.
Proof link: https://nobscrypto.com/blog/announcement-2018-10-16/
What's the advantagess and disadvantages of burning the token?
Jump to: