Token burning - page 8. | Bitcointalksearch.org

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Quote from: Fredomago on March 25, 2020, 01:03:15 PM

Quote from: trauchot on March 25, 2020, 10:58:30 AM

I saw a lot of projects where team burned their tokens and most often it did not bring anything good, but there were cases when the price of the token grew, therefore, the burning of tokens is rather a plus than a minus, so I support such projects that burn their tokens at the right moments.

If for the long term process and the team behind the project is really serious in continuing the developments of their project burning coins is helpful
to earn better value of their coin.
It's depends from developers perspectives and how the supporters will keep waiting for more progressive developments and usages of their project.

I don't understand what difference it makes for an investor to hold 100 coins at a price of $1 or 1 coin with a price of $100. In the first and in the second case it will be $100. Therefore, I have not seen that burning tokens leads to an increase in their price.

Fredomago

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Quote from: trauchot on March 25, 2020, 10:58:30 AM

I saw a lot of projects where team burned their tokens and most often it did not bring anything good, but there were cases when the price of the token grew, therefore, the burning of tokens is rather a plus than a minus, so I support such projects that burn their tokens at the right moments.

If for the long term process and the team behind the project is really serious in continuing the developments of their project burning coins is helpful
to earn better value of their coin.
It's depends from developers perspectives and how the supporters will keep waiting for more progressive developments and usages of their project.

BitcoinTurk

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In fact, we need to consider the situation you are talking about as a decrease in supply or a decrease in menstruation. When the token burning is done in a truly transparent way, we can see that this transaction has an effect on the price and the amount of circulating supply decreases. In addition, the investor also makes some purchases due to the announcement of the project team before this event takes place. Since the token burning will affect the price upward regardless of whether it is more or less, the investor is buying with the expectation of profit. With the rising demand in this way, the price rises one level, and then, after the team performs the purchase, another level increases. We can also see that this burning process in the crypto money markets is often used to inflate prices other than the purpose. In addition, since the current supply will decrease after these combustion processes, it is likely that the price will either increase permanently or not go below a certain price level. Generally, project teams perform token burning in order to reduce the number of available supplies and to move upwards with this news.

trauchot

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I saw a lot of projects where team burned their tokens and most often it did not bring anything good, but there were cases when the price of the token grew, therefore, the burning of tokens is rather a plus than a minus, so I support such projects that burn their tokens at the right moments.

Lexurdania

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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.

Agree, if the coin or token has a large transaction, I think token burning will affect the price. In economic mechanism, if the coins or tokens are demanded by the market while the supply is reduced, the price will rise and this can affect the market cap value

Leonardo7

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I don't like the ideology of token burn, it creates HYIP for the project and room for possible price growth but if the project is not offering anything unique, then token burn is just another wasteful strategy and waste of resources. It's better to use the money for a project continues development than a burning fund.

SheriffEl

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Quote from: disconnectme on March 22, 2020, 03:17:49 PM

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.

Binance was the project that made token burning a bog deal in the space but what they are doing now, do not have effect on the price of their tokens. I don't really buy into the idea of token burning because by default some people are going to lose their private keys, some to wrong address and so on. If there is a demand for your token the price would go up.

I'm following this project NWC, that alongside their product, they also offer burning connected to the product. (basically, burning token when they receive paid membership) I think that ecosystems like this have a big potential. Connecting the use of your product with token burning is in my opiniona very good idea. However, people need to use the product, if not, then its useless.

Questat

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Quote from: ScamViruS on March 22, 2020, 03:22:05 PM

Reduce supply and increase demand through token burning.

Reduce supply, obviously yes but increase in demand, that does not automatically happens, unless there is a big demand already.

Quote from: ScamViruS on March 22, 2020, 03:22:05 PM

However, this does not apply to all projects. There are huge quantities of coins / tokens, there are some serious projects that have the potential to increase the market price if token burn. And the rest of the useless projects want to create hype in the market by burning their unsold token.

Token burning is a good model for successful project but for projects that does not have a working team, its useless.
Before, people right away hype when they read a news like this without even evaluating the status of the project, and sometimes scammers use this to attract investors.

princerepon

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

[snip]

Yeah, it's happen all the time. And yes it's help to bump that coin because those coin will be valuable if their total marketcap are low. Many people like it many are not, sometimes it's work sometimes are not. In my opinion token/coin burn can't stop to go down if the project is valueless. I saw some succeed project also doing that theory for bump their coin.

ScamViruS

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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.

Reduce supply and increase demand through token burning. However, this does not apply to all projects. There are huge quantities of coins / tokens, there are some serious projects that have the potential to increase the market price if token burn. And the rest of the useless projects want to create hype in the market by burning their unsold token.

disconnectme

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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.

Binance was the project that made token burning a bog deal in the space but what they are doing now, do not have effect on the price of their tokens. I don't really buy into the idea of token burning because by default some people are going to lose their private keys, some to wrong address and so on. If there is a demand for your token the price would go up.

ololajulo

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The token burning seem to be common with exchange coin with high utility but we might likely see transaction burning token in coming months with new projects. Staking and social campaign have also replaced burning in recent projects as well while rewarding holders with coin to conserve token traded whereby managing the token volume trade. I like to see lesser token held by the team in new project irrespective of all these strategies.

Ezravdb

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Burned tokens are often done by developers to reduce the supply of token. this is also done by the developer / CEO Bnb where every quarter they burn BNB coin. But Fomo does not currently have an impact or influence on price spikes because the current market situation is in turmoil by the corona virus outbreak. Not only burning done but there are some developers who apply staking or lock to get dividends to boost the price of tokens.

doctor877

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It's all about what the project is offering. Reality has set in for all this things and we all have known that it really doesn't matter. What matters is there demand for the project , it's product and are they doing well otherwise the burn wont bring any effect.

kopisusu

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they burn tokens at special events aimed at increasing the value of tokens in the market but sometimes all of that does not succeed in making prices go up, many projects have done that but the value of tokens has fallen

jajorforce

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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.

Simple strategy low coin has high demand and decreasing supply could be more good. Check Ferrum network project, They will burn their token. All of them transaction fee and transaction fee will be calculate by ICO price of USD. I can't trust scam projects which has burning program

Chuky92

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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.

There are things which really determines the value of a project and the first is how the team were able to arrange and develop their ideas; it is this ideas that people will always look at and invest as the case may be. All these deflationary projects, they came in with speed and ceased to exist with speed as well which shows there is something wrong with it. Also, most projects which have this token burn system are not too valuable as well, thus showing that token burn in whichever mechanism implemented isn't the main thing but the use case in such platform.

canovan25

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Quote from: htsy585 on March 18, 2020, 09:48:59 PM

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.

Token burning right from the early days of ico has been part of various things project developers do proposed to gain the interest of the investor as the whole concept of token burning is geared at increasing the demand of the token when listed on trading exchanges. However, since then it has been a two way things as some project have been able to increase their demand and the tokens price through it, such a project is binace and at the same time majority of projects found it unsuccessful.

It’s ridiculous. How can this increase demand? For what? Shitty tokens? Do not confuse, burning reduces supply, the result is about the same, but fundamentally these are different processes.

canovan25

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Quote from: cytpoway121 on March 18, 2020, 03:36:32 PM

Quote from: canovan25 on March 18, 2020, 10:03:41 AM

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).

Ideally, there are different variance to token burning.
Because project A conducted a token burn and experienced a surge increase in value and price does not mean that if project B conducts a token burn, it will definitely experience same.

It is applicable for both project developers and investors, to take note that before token burn, there has to be a special product in place that can drive necessary demand.

Demand does not play such a role. The token should not be an exclusively speculative asset. It seems to me that if developers want to pay part of the profit, it is better to buy DAI for profit and send them to all owners of a token or coin, as they do on the regular stock market.

Quote from: kooboat on March 18, 2020, 05:46:04 PM

Most token events are undertaken by projects to preserve the value of tokens. While the burning of tokens are meant to increase the confidence of holders, some projects that claim to have some burn tokens still end up bringing up almost useless tokens or coins. Perhaps, it is about time, project develops review the process involved in burning tokens to safeguard the value.

How can burning increase confidence/trust? That's bullshit. The only thing that coin burning can do is increase discussion and get a couple of news headlines on BTT and related forums. It is no secret that most of the founders are market makers for their projects. By burning, they fuel interest in the project and increase cash flow.

Fallenkeith75

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Hi Crypto Friends :)

Quote from: SistaFista on March 22, 2020, 11:17:46 AM

Token burning is a good way to increase the value of the coin, but it will requires more money for the team to buy the coin from the market.
Usually the token burning will happening if the project have enough funds to buyback the token and burn them.

Isn't it possible for new projects to have pre-allocated funds that can be burnt rather than doing a market buy though?

Also it should be possible to have a deflationary mechanism built in too where each transaction destroys a bit of the supply (i.e, bomb token).

Topic: Token burning - page 8. (Read 1234 times)