Token burning - page 11. | Bitcointalksearch.org

canovan25

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Quote from: SheriffEl on March 18, 2020, 03:46:16 AM

Hey

I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

Hey. I think this is just a futile trend. Burning does not bring any real benefits to the ecosystem. The only reason this operation is useful is for speculators - for them this operation is neutral or profitable. It is rational to use it only if the coin has collateral in the form of real assets (After burning, the value of each coin grows, which is a positive result for the user).

Diamond_Darrell

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Quote from: JeromeTash on March 18, 2020, 04:17:56 AM

A token burn is still useless if there is no demand for the token. Most projects do a token burn hoping that the price will rise due to less token circulation but this doesn't work if there is no demand.

It's the most useless process i have ever seen around in economical aspects.

But if everything is fine, and with a good information background with progress in and compliance with the roadmap, then burning coins does its job. It all depends on the seriousness of the project)

coin-investor

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Quote from: SheriffEl on March 18, 2020, 03:46:16 AM

Hey

I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

In the first place, they should not or stopped creating a huge supply of their token, no investors will be attracted to projects that have a huge supply while they have a useless platform, it's not about supply anymore it's more on the platform and if the platform has a good usage to the community.

bgaf

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One good example of this is Binance project. They have quarterly burn tokens as part of their plan. Some projects have burned their coin for inappropriate approach. Supposedly the project should increase its value during the burning but the reverse is happening.

Quote from: joseyphil82 on March 18, 2020, 07:35:59 AM

Most new projects that implemented burning ability are bad projects especially deflation tokens like Ethplode and the rest, they have no real use case than the deflation ability

Ive seen a lot of these projects but to be honest, they just added some worthless on the market. Ethplode has no use case and simply their want is rolling of funds through trading.

Akiko

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Quote from: Novatech8 on March 18, 2020, 07:20:44 AM

Burning tokens is only effective if the token is useful and have high demand too, few new projects only have this burning feature to offer and today they are suffering on exchanges due to low trading volume, if a token is demanding and burning takes place the value will surely go up

because they are only creating the idea of less supply increase the price but actually this is not how it works.
Since they have no experience in the market they do not have any idea what will be the things to help the price increase if they this burning method.

They are just using the same idea to other's that having it, but they dont review the price of the tokens in the market and check if what is the real problem having a burning scheme.

joseyphil82

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Most new projects that implemented burning ability are bad projects especially deflation tokens like Ethplode and the rest, they have no real use case than the deflation ability, how will this be useful for the masses? Deflation and burning ability are good but only better for projects that have good use case

Novatech8

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Burning tokens is only effective if the token is useful and have high demand too, few new projects only have this burning feature to offer and today they are suffering on exchanges due to low trading volume, if a token is demanding and burning takes place the value will surely go up

Sterbens

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Most of now burning tokens from not many requests so the results of tokens remain shitcoin and are not useful anymore on the exchange, I think it is not beneficial if some projects do that kind of thing especially new projects will certainly not have significant results or demand becomes high volume I do not maybe.

Large projects burn tokens so this will have a big effect because it will reduce the total supply of available.

masterrex

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Quote from: SheriffEl on March 18, 2020, 03:46:16 AM

Hey

I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

I think it depends on the tokens use case that will create demand, deflationary tokens are not bad if it was backed with any product or services or we just simply saying a uniques use case, Burning of tokens automatically is a useful move to reduce the total supply every time there is a purchase of its product or to use it services. but if those deflation based token projects are empty or not supported with any product/services well it's useless so don't invest in it.

Questat

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Token burning is only significant for popular projects with big investors as the reduce of token will result to an increase of value in the long run.
People above is correct, token burning is useless when there is no demand for coin.

DimitrisLodirogas

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Won't help if there's no demand for token. Which project in particular did you have in mind?

Bonwin

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I have seen a lot of projects did regular burning and yet no impact. Some use it to deceive the community, to think they meant well and yet failed. Gone are the days, when people were deceived with such strategy. Well, some succeeded and got their tokens pumped, but in the end, the team ended up dumping.
They use it to actualize their targeted price(s). Afterwards, you might see the token go down to zero or almost.
No one is going to fall for such gimmicks.
If you say you want to burn, well good, but show us what you have got, that product that people are in need of and that will add value to your tokens with more demands.

jossiel

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Whether they burn, there is no guarantee that the token they have will create a huge pump or volume.

The community will decide for its volume and that's through the investors who will actually buy the token. So, if there's no buyer, who will be the taker? none.

If there's a bunch of token and sellers then there's no buyer, it's worthless whether they burn 99.9% of their entire supply.

btc_angela

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This has been a practice ever since, projects burn their token to make it limited and try to push the price to the next level. However, if the project is doomed, then there is no way it can salvage just because they are going to burn. I think if I'm not mistaken, Binance do burn their tokens, I think it is one of the most successful projects even to use this strategy to make the price even higher. But for shitcoins? Nah, if there are no demand it will simply die, no matter how many tokens they are going to burn.

Cvetik56

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Quote from: JeromeTash on March 18, 2020, 04:17:56 AM

A token burn is still useless if there is no demand for the token. Most projects do a token burn hoping that the price will rise due to less token circulation but this doesn't work if there is no demand.
It's the most useless process i have ever seen around in economical aspects.

It is totally useless thing for a new token to do, since it kills the demand which is not high for new token.
However I find it quite useful for high demand coin/token since the supply will be lower than demand and the price will be straight higher

Akiko

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Quote from: SheriffEl on March 18, 2020, 03:46:16 AM

Hey

I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

The price of coin depend on the demand even they burn all of the supply it will never change .
Burning is a way to only reduce the supply in the market but it never help to have the demand , it will only help if they have a way to make people aware about the tokens and increase the community they have and make more promotion so there will be more people buy it.

lobo13hf

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Just remind you if you must see how good the coin based on usability of the token. All of the deflation tokens are garbage tokens and these tokens can be called as scam token. I think that there was no more explanation about that because deflationary is a complete garbage idea. I just see more and more deflationary token scammed more and more people.
This is a crap idea.

ife2020

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Quote from: SheriffEl on March 18, 2020, 03:46:16 AM

Hey

I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

Lets just say that the process of token burn is to reduce the total supply of the token, and equally create some sorts of hype for the project, that may resort to increase in value.

But in truer sense, only a newbie can be wowed by the prospect of a token burn. Some projects burn their token and dumps further, while some burns and improves a little.
It actually depends on the project, does it drive demand ?

JeromeTash

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A token burn is still useless if there is no demand for the token. Most projects do a token burn hoping that the price will rise due to less token circulation but this doesn't work if there is no demand.

It's the most useless process i have ever seen around in economical aspects.

SheriffEl

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Activity: 212

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Hey

I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

Topic: Token burning - page 11. (Read 1210 times)