token supply - page 4. | Bitcointalksearch.org

damar09

full member

Activity: 434

Merit: 101

★Bitvest.io★ Play Plinko or Invest!

Quote from: tsaroz on January 16, 2020, 11:15:36 AM

Quote from: Lagduf on January 15, 2020, 07:22:00 PM

Quote from: damar09 on January 15, 2020, 06:50:37 PM

sometimes I think if you look at the amount of token supply in such a large amount that trillions and trillions after the project runs several months or years, the token will be burned, what for if you make tokens with a large supply, but will be burned, ...?

Roll Eyes

Agreed, i m not seen seeing the main point to create a big supply of token. I just see that a trick that has already made by the developers. We can take a look at pundi and how it was always creating more and more new tokens and then burned it. It looks like the reason for the creation of more supply totally non sense. Some developers said that it's to fit the development of the platform or even to get more adoption.
The total token supply is indeed static but it doesn't mean we need to create more and more supply like some crap projects that even create multi-billion supply which didn't make sense.

They are for rewarding the token holders by increasing the price.
For an example, look at BNB, the exchange binance allocates a portion of it's profit to buy back BNB from market and burn them to decrease the supply quarterly.
It's a direct way to make the investors profit in proportion to the profit of the project.

if they see that BNB is indeed a high ranking platform, and when the project is launched, they incur significant costs, and the price target is quite high, the marketing targets are very accurate, so that the holder / investor of BNB, gets a promising profit, and you we can see BNB has its own exchange sites, so BNB has a strong foundation to compete in the market with other cryptocurrency. And in my opinion this is a good marketing strategy.

noorman0

hero member

Activity: 1764

Merit: 696

[Nope]No hype delivers more than hope

Quote from: wajik-tempe on January 15, 2020, 09:09:41 PM

I think the way of token burning in cryptocurrency is not fair yet , that made the investors are won't to invest when the tokens already burned because the previous holder are buyitng the tokens before the token burned which will really advantage for the previous holder. If the tokens burned by percent , the tokens that held by the holder must be burned by the same percent also, that will make fair. this is my personal opinion, no offense

You should first understand technically how tokens burning is donw. So far, I've not yet discovered how the token issuer can burn holder/investor tokens.

ven7net

full member

Activity: 1946

Merit: 112

Quote from: damar09 on January 15, 2020, 06:50:37 PM

sometimes I think if you look at the amount of token supply in such a large amount that trillions and trillions after the project runs several months or years, the token will be burned, what for if you make tokens with a large supply, but will be burned, ...?

Roll Eyes

Perhaps this is due to the fact that administrators just want to earn more from the sale of tokens. At heart, they rely on the idea that sales will go well and they will be able to sell a lot and quickly become billionaires. But as practice in recent years shows, this is all a hoax. Also, I believe that those who create such a number of tokens may not even understand the economy at all and come up with values by eye.

luckyflop

hero member

Activity: 812

Merit: 512

Quote from: damar09 on January 15, 2020, 06:50:37 PM

sometimes I think if you look at the amount of token supply in such a large amount that trillions and trillions after the project runs several months or years, the token will be burned, what for if you make tokens with a large supply, but will be burned, ...?

Roll Eyes

Burning the token will help the value of the token increase and not be inflated. Over the past 2 years I've seen many projects that have implemented the same strategy. They regularly burn their tokens on a schedule to make their tokens more scarce and prices likely to rise more easily. BNB is an example like that, and I think this is a great strategy for good projects and in the long term the price of tokens will reach many times higher than the original

StephenieDuong

sr. member

Activity: 602

Merit: 250

—RUSHMOON — Automatic LP & Yield Farm & AMM on BSC

I think there are lots of reason to explain why some project create large of amount of tokens. First, they want that their tokens price cheap, lots of investors like cheap tokens, they dont even care about the marketcap. Second, investors want to own lots of tokens, this sometime make they feel rich.

imutlinda

sr. member

Activity: 926

Merit: 256

sometimes it happens like this, burn tokens to keep prices stable or for other reasons. sometimes if the number of tokens is large then their platform must be proportional to the potential buy of the token, otherwise the price will go down and the developer will burn their token. and the bad thing is that the token will rarely be used for investment by investors.

tsaroz

legendary

Activity: 3094

Merit: 1069

DGbet.fun - Crypto Sportsbook

Quote from: Lagduf on January 15, 2020, 07:22:00 PM

Quote from: damar09 on January 15, 2020, 06:50:37 PM

sometimes I think if you look at the amount of token supply in such a large amount that trillions and trillions after the project runs several months or years, the token will be burned, what for if you make tokens with a large supply, but will be burned, ...?

Roll Eyes

Agreed, i m not seen seeing the main point to create a big supply of token. I just see that a trick that has already made by the developers. We can take a look at pundi and how it was always creating more and more new tokens and then burned it. It looks like the reason for the creation of more supply totally non sense. Some developers said that it's to fit the development of the platform or even to get more adoption.
The total token supply is indeed static but it doesn't mean we need to create more and more supply like some crap projects that even create multi-billion supply which didn't make sense.

They are for rewarding the token holders by increasing the price.
For an example, look at BNB, the exchange binance allocates a portion of it's profit to buy back BNB from market and burn them to decrease the supply quarterly.
It's a direct way to make the investors profit in proportion to the profit of the project.

bison

full member

Activity: 778

Merit: 100

SmartFi - EARN, LEND & TRADE

Quote from: nutriagrigia on January 16, 2020, 10:40:31 AM

I always see that if a project makes a huge amount of tokens, I always do not understand why do they need it. this is a very difficult question, but I do not see any problem in this if their emission is limited. there will be no problems if the project team cannot increase the number of tokens created.

Token supply that is made only affects the price based on the agreement made by the market. Even though the initial price is the developer, there is no guarantee that the price will match the market demand. indeed there is no problem but everything must have been considered and calculated by the developer in determining the price and market of the marketed tokens.

Xcode7

sr. member

Activity: 1148

Merit: 432

Quote from: damar09 on January 15, 2020, 06:50:37 PM

sometimes I think if you look at the amount of token supply in such a large amount that trillions and trillions after the project runs several months or years, the token will be burned, what for if you make tokens with a large supply, but will be burned, ...?

Roll Eyes

Yes, it is indeed a kind of marketing strategy, I think they are taking quite a high risk for this kind of strategy, this could be natural if their tokens are in demand in the market. But it would be very unfortunate if in the long run their strategy did not work, but again I think the project owner has prepared anticipation about such things for their good name.

damar09

full member

Activity: 434

Merit: 101

★Bitvest.io★ Play Plinko or Invest!

I often see there are several tokens with such a large inventory, and because of the burning that the total supply is even far less with an innumerable amount of initial supply, but in terms of price increases not so dramatic, and why make tokens with insufficient quantities calculated after distribution, the price of the token has increased slightly

nutriagrigia

sr. member

Activity: 1270

Merit: 254

Oikos.cash | Decentralized Finance on Tron

I always see that if a project makes a huge amount of tokens, I always do not understand why do they need it. this is a very difficult question, but I do not see any problem in this if their emission is limited. there will be no problems if the project team cannot increase the number of tokens created.

DaMut

sr. member

Activity: 1274

Merit: 263

it is one of their business models, how to keep the price up without spending a lot of money in the process? the answer is burning it.
when the value of the coin starts to go down, they have two options that they can do to keep the price which is buyback or decrease its total supply.
if they have a lot of money, buyback is their best option but if they do not have any money left to do it then burn is their only way to do it.

SquallLeonhart

legendary

Activity: 2464

Merit: 1102

Quote from: FLHippy on January 16, 2020, 01:43:51 AM

It is better when project has limited supply around few millions because it is more rare. Big supply tokens are mostly quick-profit schemes when team own a lot of tokebs and constantly dumping own tokens.

I do not really think that any of the team from potential projects might dump their own token unless and until it is a scam project. I have seen a number of teams or advisers dumping their own tokens in order to cashout the funds but these projects end up being shit token with no value.

Actually we might not even know if the team or the advisers for such projects are real or fake. But on the other hand, team members of potential project would always try to create a demand for their tokens by not selling them but by creating huge awareness about the benefits of holding their tokens and even in this case if the tokens are burned, they created comparatively higher demand for the tokens.

Bonwin

member

Activity: 798

Merit: 38

Quote from: damar09 on January 15, 2020, 06:50:37 PM

sometimes I think if you look at the amount of token supply in such a large amount that trillions and trillions after the project runs several months or years, the token will be burned, what for if you make tokens with a large supply, but will be burned, ...?

Roll Eyes

Lol... It's a game plan. They work by the plan, if achieved, they get what they want and you know the next thing... Wink

A project without a product, but keeps burning is useless. Gone are the days that mere burning of tokens have positive impact on price. I have seen tokens that were burnt, yet they dumped as soon as announcement is made. The strategy most times is to see the price surge and for the community to believe more in the project.

Dickiy

sr. member

Activity: 826

Merit: 460

Quote from: Latviand on January 16, 2020, 03:35:49 AM

Quote from: ecnalubma on January 15, 2020, 07:43:45 PM

Quote from: damar09 on January 15, 2020, 06:50:37 PM

sometimes I think if you look at the amount of token supply in such a large amount that trillions and trillions after the project runs several months or years, the token will be burned, what for if you make tokens with a large supply, but will be burned, ...?

Roll Eyes

Probably its a strategy of most projects creating large supply then burn later. They burn tokens for some reason, one is they burn the unsold tokens from crowdfunding and number two in they are trying to make their token scarce by reducing supply.

Are there possibilities that they are doing so because they want the demand for the token to increase which would also reflect to its market value? In such way, a token would have a bigger value and would have a place in the "market"? I came up with this idea since most of the coins or tokens that are from projects with large supply often result to coins with low market price especially whenever dumps happen which are not catching the interest of the investors to invest in it. Just correct me if I'm wrong. The reason of most of the projects for burning the excess supply is for the good of the project itself for a long run, but i cannot still see the essence, clearly.

may be for the development of tokens in the long run but as long as I observe this burning process does not really affect the price but more influential is the process of swap or algorithm change

Latviand

full member

Activity: 1540

Merit: 219

Quote from: ecnalubma on January 15, 2020, 07:43:45 PM

Quote from: damar09 on January 15, 2020, 06:50:37 PM

sometimes I think if you look at the amount of token supply in such a large amount that trillions and trillions after the project runs several months or years, the token will be burned, what for if you make tokens with a large supply, but will be burned, ...?

Roll Eyes

Probably its a strategy of most projects creating large supply then burn later. They burn tokens for some reason, one is they burn the unsold tokens from crowdfunding and number two in they are trying to make their token scarce by reducing supply.

Are there possibilities that they are doing so because they want the demand for the token to increase which would also reflect to its market value? In such way, a token would have a bigger value and would have a place in the "market"? I came up with this idea since most of the coins or tokens that are from projects with large supply often result to coins with low market price especially whenever dumps happen which are not catching the interest of the investors to invest in it. Just correct me if I'm wrong. The reason of most of the projects for burning the excess supply is for the good of the project itself for a long run, but i cannot still see the essence, clearly.

sjbi

member

Activity: 770

Merit: 14

www.thegeomadao.com

I think issuing a large amount of tokens and burning them gradually is a business strategy to attract as many as investors. In business theory, when there is high in demand and supply is limited, price increases. So will apply to cryptocurrency. Crypto projects are meant to burn their tokens just to ensure supply is limited and demand increase, thus increasing its price.

nicolas1979

sr. member

Activity: 826

Merit: 252

Large supply is to guarantee all users will get token on time and right quantity. Other reason is to make healthy circulation is market, if this running well liquidity will become no problems. Burned token is solution if plan doesn't work specially about target and value. Minimum supply also can be used as good indicator that developer will push more harder to increase value, so if you are bounty hunter I think you already knew that minimum supply is our favorite.

crossabdd

legendary

Activity: 1316

Merit: 1145

tokens are burned to reduce supply so that prices are maintained. With a small supply, the price of coins can be stabilized or controlled. the number of tokens reaching billions is the initial target. but if it does not reach the target and further uses. then the coin will be burned to be controlled and stabilized.

FLHippy

full member

Activity: 784

Merit: 101

It is better when project has limited supply around few millions because it is more rare. Big supply tokens are mostly quick-profit schemes when team own a lot of tokebs and constantly dumping own tokens.

Topic: token supply - page 4. (Read 790 times)