What is coin or token burning? | Bitcointalksearch.org

nicolas1979

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Quote from: Cleaner00 on April 26, 2021, 04:02:17 AM

There are many of us who do not know what is burning coins or tokens, so I will highlight the details for them today.
Coin or token burning is the removal or burning of a coin from its total supply. We can call coin burning the amount of coins that will be removed from the total supply of a coin.The main purpose of burning all coins is to reduce the amount of coins.
Suppose you burn ltc coins, now suppose LTC has a total supply of 100000000, now if you want to burn 20% coins of this project, they can burn coins slowly.

Coin burn results:
The result of burning coins is that they will reduce the amount of coins from the supply. As a result, the supply of that coin will decrease and the price of the coin will increase. We all know that 50% of the bnb coins were burned. And as a result, the price of bnb coins is much higher now.

Yes, burn and staking are strategies to increase coin prices. Apart from that, the Binance exchange also uses the Launchpad method for certain coins, so the price of the BNB coin can also increase. In the Launchpad method, participation is required to hold the BNB balance, so that trading of BNB coins will decrease, and pumping will be easy. But it doesn't stop there, there are some coins that will be dumped because participants will sell the coins and buy BNB. However, daily traders can take advantage of this situation to buy and sell coins as expected. Perhaps other exchanges have different methods of pumping up the coin price, including trading volume competition.

wmaurik

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Quote from: noah tall on November 06, 2021, 11:42:09 PM

The token or coin burning is the process in with the total supply is reduced. Which causes to effected on price . Because when the the quantity burn the price is on the way to up.

The burning of the tokens is not for the purpose of increasing the price although the effect will be for the price, because the actual price increase is in the demand and supply of many in the market, not solely on the burning of tokens.

nekorakoeora

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Quote from: asyakashi on November 06, 2021, 11:56:04 PM

Burning coins is also a joy for investors and the community as it will increase prices quickly by reducing the amount of supply. Usually combustion occurs by sending a certain amount of supply held by the project to a dead address. BNB is one that often uses this method to increase prices. In addition to BNB, there is also CAKE that always burns its tokens periodically.

Simply put, this leads to scarcity. When the amount is rare or limited it will have a high value. However, not all cryptocurrencies that are burned will increase. This is more towards a stable value or adjusting prices more decently. Or it could be by burning coins is expected to lower the potential inflation on a coin.

savetheFORUM

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Quote from: Cleaner00 on April 26, 2021, 04:02:17 AM

The result of burning coins is that they will reduce the amount of coins from the supply. As a result, the supply of that coin will decrease and the price of the coin will increase.

If a coin is having a real world application then there will be no need of going for burning it. In my opinion burning is a process that it is being conducted to create artificial demand. This is definitely a kind of manipulation but unfortunately no one is ready to realize the fact but falling into such a trap.

Quote from: Cleaner00 on April 26, 2021, 04:02:17 AM

We all know that 50% of the bnb coins were burned. And as a result, the price of bnb coins is much higher now.

BNB must be an exceptional case. It is having a real world application like you can get up to 50% discount if you pay in BNB in binance trading. Still, not sure why binance is planning for scheduled burning time to time.

asyakashi

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Burning coins is also a joy for investors and the community as it will increase prices quickly by reducing the amount of supply. Usually combustion occurs by sending a certain amount of supply held by the project to a dead address. BNB is one that often uses this method to increase prices. In addition to BNB, there is also CAKE that always burns its tokens periodically.

noah tall

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The token or coin burning is the process in with the total supply is reduced. Which causes to effected on price . Because when the the quantity burn the price is on the way to up.

timerland

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Burning a coin doesn't give it intrinsic value.

It's like SHIB. There was a massive burn at the start to generate hype but that doesn't mean that it is a valuable token.

Whereas the more scarce and respected coins like BTC and ETH has never had a coordinated burn, which in my opinion makes the most sense for the stability of its supply.

wmaurik

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Quote from: cryptohappy02154 on November 02, 2021, 08:50:18 AM

Coin burning reduces the total supply of a coin. As a result, everyone has a focus on that coin, and then its price moves a little . However, in the case of all coins, burning coins may not result in a price increase. Cheesy

That's obvious and the team that did the coin burning also has a stronger and clearer reason for doing that, because usually the implementation occurs when a coin that has started to be seen by some people with a very large supply but very little used, so reduced by burning

cryptohappy02154

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Coin burning reduces the total supply of a coin. As a result, everyone has a focus on that coin, and then its price moves a little . However, in the case of all coins, burning coins may not result in a price increase. Cheesy

stomachgrowls

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Quote from: Anonymous100 on October 19, 2021, 06:11:13 PM

Quote from: Cleaner00 on April 26, 2021, 04:02:17 AM

There are many of us who do not know what is burning coins or tokens, so I will highlight the details for them today.
Coin or token burning is the removal or burning of a coin from its total supply. We can call coin burning the amount of coins that will be removed from the total supply of a coin.The main purpose of burning all coins is to reduce the amount of coins.
Suppose you burn ltc coins, now suppose LTC has a total supply of 100000000, now if you want to burn 20% coins of this project, they can burn coins slowly.

Coin burn results:
The result of burning coins is that they will reduce the amount of coins from the supply. As a result, the supply of that coin will decrease and the price of the coin will increase. We all know that 50% of the bnb coins were burned. And as a result, the price of bnb coins is much higher now.

Of course, burning coins can increase the price of these coins, because the circulation supply has decreased. Apart from that, the staking system is activated. Binance often does a staking system for BNB coins, so the price of BNB coins can increase without having to wait for a typical bull run. I think Binance uses a lot of methods in pumping up the price of the coin.

Burning doesnt really always mean that the price would be rising up on a particular coins/tokens that does have burning event because it would always matter on the demand
itself because the lesser the supply the higher the demand then of course it would really be having that higher price.

Speaking with BnB then this doesnt only talks about burning mechanism but rather basing off majorly on real use case plus having that momentum
when it comes to those applications that had been made plus having that burned events then the demand is still increasing
then theres no doubt about those numbers.

Anonymous100

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Quote from: Cleaner00 on April 26, 2021, 04:02:17 AM

There are many of us who do not know what is burning coins or tokens, so I will highlight the details for them today.
Coin or token burning is the removal or burning of a coin from its total supply. We can call coin burning the amount of coins that will be removed from the total supply of a coin.The main purpose of burning all coins is to reduce the amount of coins.
Suppose you burn ltc coins, now suppose LTC has a total supply of 100000000, now if you want to burn 20% coins of this project, they can burn coins slowly.

Coin burn results:
The result of burning coins is that they will reduce the amount of coins from the supply. As a result, the supply of that coin will decrease and the price of the coin will increase. We all know that 50% of the bnb coins were burned. And as a result, the price of bnb coins is much higher now.

Of course, burning coins can increase the price of these coins, because the circulation supply has decreased. Apart from that, the staking system is activated. Binance often does a staking system for BNB coins, so the price of BNB coins can increase without having to wait for a typical bull run. I think Binance uses a lot of methods in pumping up the price of the coin.

Marykeller

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If the demand is not there, the burning of tokens doesn't make any given sense. The burning of tokens will only make sense when there is much demand for the coin by investors. At least it will help in skyrocketing the price of that token and also make the token to be more scarce.
Every token burning has the ratio of which it is burning against the total supply

kensaii

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Quote from: impulse709 on October 13, 2021, 11:57:06 AM

Quote from: Cleaner00 on April 26, 2021, 04:02:17 AM

There are many of us who do not know what is burning coins or tokens, so I will highlight the details for them today.
Coin or token burning is the removal or burning of a coin from its total supply. We can call coin burning the amount of coins that will be removed from the total supply of a coin.The main purpose of burning all coins is to reduce the amount of coins.
Suppose you burn ltc coins, now suppose LTC has a total supply of 100000000, now if you want to burn 20% coins of this project, they can burn coins slowly.

Coin burn results:
The result of burning coins is that they will reduce the amount of coins from the supply. As a result, the supply of that coin will decrease and the price of the coin will increase. We all know that 50% of the bnb coins were burned. And as a result, the price of bnb coins is much higher now.

Practically not all burned coins will go up in price. It is true that the normal number of burned coins will cause the price to skyrocket but there are coins that are worthless even after burning many times still have no value. and we look closely and the coins are mainly coins. have the top 100 on coinmartketcap if the coins have good features and strong market development direction and they take measures to burn coins to help reduce inflation and improve the value of their coins, of course the price will increase, but conversely, coins with a total supply of 1 million billion billion, actually burning 1 salary 20% can't solve anything.

True, this is why burning is a desperate move and when a coin announces they plan to burn their coin, the price will either go up (high hope, trusted dev) or go further down (bad reputation, inconsistent dev, broken promises,...). Explain why many coins burning but eventually going dead or fail to increase the price.

Slon55koz

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Quote from: satsmainman on August 26, 2021, 11:02:41 AM

Coin burn is generally to reduce the circulating supply of a particular asset type. I believe they're several factors that pushes project development teams into burning part of their token supplies, it could be in a bid to impress investors as reduction in token supply will cause an upward price action. But sadly, many shit project's out there are using the burning Mechanism to lure and robb unsuspecting investors.

Participation in dubious projects carries certain risks. Including dishonest developers can burn tokens, which can affect the well-being of investors for the worse. But still, I think that if an investor competently allocates his capital, he has much less chance of encountering a substandard project and losing his profit.

Om.monata

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Quote from: anu1908 on April 26, 2021, 04:57:23 AM

Quote from: Cleaner00 on April 26, 2021, 04:02:17 AM

As a result, the supply of that coin will decrease and the price of the coin will increase.

the decrease of supply is guaranteed, but price doesn't necessarily will rise. if the token is garbage, market won't care about it that much. if the demand stays the same or improve, that might help. but if not, it's just a hopium/copium for bag holders. don't fall for trick like that.

this is true bro, not always coins that are burned can increase because the most important thing is how the development of the coin and the development of the coin team to make the price of the coin increase. not from the burning

impulse709

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Quote from: Cleaner00 on April 26, 2021, 04:02:17 AM

There are many of us who do not know what is burning coins or tokens, so I will highlight the details for them today.
Coin or token burning is the removal or burning of a coin from its total supply. We can call coin burning the amount of coins that will be removed from the total supply of a coin.The main purpose of burning all coins is to reduce the amount of coins.
Suppose you burn ltc coins, now suppose LTC has a total supply of 100000000, now if you want to burn 20% coins of this project, they can burn coins slowly.

Coin burn results:
The result of burning coins is that they will reduce the amount of coins from the supply. As a result, the supply of that coin will decrease and the price of the coin will increase. We all know that 50% of the bnb coins were burned. And as a result, the price of bnb coins is much higher now.

Practically not all burned coins will go up in price. It is true that the normal number of burned coins will cause the price to skyrocket but there are coins that are worthless even after burning many times still have no value. and we look closely and the coins are mainly coins. have the top 100 on coinmartketcap if the coins have good features and strong market development direction and they take measures to burn coins to help reduce inflation and improve the value of their coins, of course the price will increase, but conversely, coins with a total supply of 1 million billion billion, actually burning 1 salary 20% can't solve anything.

airdata

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Quote from: Cleaner00 on April 26, 2021, 04:02:17 AM

The result of burning coins is that they will reduce the amount of coins from the supply. As a result, the supply of that coin will decrease and the price of the coin will increase. We all know that 50% of the bnb coins were burned. And as a result, the price of bnb coins is much higher now.

The main reason of Burning is reduce coin from total supply and we always believe that Low supply means following token price will more increase but it is not effective for all coin. Have Many project with Billion Token but their price is high so it is depend project's use case, team their concept etc. So low supply means more price it is not correct.

batang_bitcoin

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Quote from: Alf_m.h on September 29, 2021, 12:25:41 PM

After that most of them become meaningless coins, only during the Burn period they will rise rapidly, usually there are some coins stuck, and wait for the right time then it will sail again.

That makes sense. That's why some projects are announcing that they're going to burn this amount of their tokens which is equivalent to quite a sum of money.
And that's very attractive to everyone who's looking to have some quick money. It is the usual thing in the market, when you see the news you'll rush to be the first to buy it.

AwoCorporation

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Coin burning is mostly done in various coins, big coins in the crypto space also do it, indeed coin burning will cause scarcity and it will result in rising prices, but please note that this increase is also due to a large community of fans who are willing to participate in pushing the coin to sell. go up, without a large community, burning coins will only be in vain, because the ups and downs of prices also come from the activities of investors in transacting using these coins.

kaseygriffin

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Coin burning is the process of permanently removing cryptocurrencies from circulation, reducing the total supply.
Most projects have a coin burn plan, with some intent that this can help increase the coin's value.
But we tend to think that burning coins increases their value when the supply in the circulating market becomes scarce. And for that is a positive trend in the future. But that's not it. Since we believe that they are really scarce, demand increases with the expectation that they will really increase their value, but at the same time there are many other ways to create coins. For example, the Bitcoin example also generates new tokens in some cases through a hardfork.

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