Topic: What is coin or token burning? - page 2. (Read 700 times)
Burning coins or tokens removes them from the supply, which makes the token more rare/valuable. If there is demand for the token, this can increase it. You have to consider that there may be more valuable thing you can do with funds rather than burning them though, like DeFi rewards, DApp developer rewards like what NEAR protocol is doing, or put them into a DAO for community management.
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.
Burning is commonly used to lure communities to buy a coin by reducing the amount of initial supply. This proved until now to be even the most liked news community and investors. Usually the coin that is experiencing burn will immediately go up.
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.
Coin or token burning is often used as a way to increase the value of a coin or token, and is often considered the easiest way to increase its value, but in reality not everything goes as expected,
its a common misconception that a lot are still falsely believeing , this is why lots of shit and scam projects are now using the word token burning to their marketing because they knew that it will attract investors .
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We all know that 50% of the bnb coins were burned. And as a result, the price of bnb coins is much higher now.
i didnt know this but thanks for this trivia . bnb is a succesful coin and i think that other factors contributes to its growth not just burning 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.
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.
I am a really big fan of projects that have some kind of token burn implemented in their tokenomics. As you already said binance is great example for what happens if you have an already good project with a token that has a use case and on top of that you even have a token burn mechanism that will gradually decrease the existing supply of the token. That doesn't mean though that a token burn mechanic is automatically guaranteeing that the price of the token will rise. Just look at all those meme-coins that came out a few months ago, a lot of them had a token burn included in their tokenomics but today 99% of those projects are dead despite that.
Burning of cryptocurrency token can simply signifies the rate at which there is a decrease in a particular cryptocurrency token supply and yield price increment of that particular cryptocurrency token.
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.
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.
Coin or token burning is often used as a way to increase the value of a coin or token, and is often considered the easiest way to increase its value, but in reality not everything goes as expected, a coin or token that is burned must have good potential in the crypto market, community big fans and continuous development, if the coin or token that is burned is just a shitcoin that is not that much in demand, it will be useless even if it is pumping but is temporary and will eventually come back and even sink.
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.
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.
Ditto on that. Burning is literally reducing coins to increase profit. Platforms like Defi Magic https://bsc.defimagic.io/#/ is a burning utility token ecosystem. They also have high staking incentives and Liquidity Generator. It's one of the best Crypto Projects I have invested in so far.
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 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.
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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.
Decrease in supply doesn't automatically mean the price will skyrocket after burning, the burn only takes a few coins from the supply, its not an automatic way for a coin to gain more value, so many people always get this part of coin burning wrong thats why they fomo into buying any coin after there's an announcement of coin burning about to happen, some even fomo to buy coins just because the team promise say there's a burn mechanism, don't fomo into buying coins because they will get burned, without proper marketing even after burning the price can still drop instead of pump.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.
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.
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.
Ditto on that. Burning is literally reducing coins to increase profit. Platforms like Defi Magic https://bsc.defimagic.io/#/ is a burning utility token ecosystem. They also have high staking incentives and Liquidity Generator. It's one of the best Crypto Projects I have invested in so far.
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.
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.
Only with brave developer want to burn their coin exactly have higher price like BNB and eth, they are very great project although have higher price keep burning coin supply to make price keep stable on high, many time BNB coin burning every month and keep make price up but still not good news where have any coin unlock, for ETH is the best project keep burning without unlock coin and supply will increase little to make price keep up. 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.
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.
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.
Actually they are practicing economic formulas in increasing the price of coins, this is deliberately done so that the coins are meaningful and have a high selling value, so this pattern continues to be adopted to this day.
The more demand, the supply will automatically decrease, especially after being burned, this makes the coin value very high, I think this pattern is almost done by anyone in doing something they want to achieve.
I honestly believe that it is a marketing shtick and nothing more. The most famous one is BNB of course where they burn bunch of BNB all the time, but it is all about marketing and nothing more. Think about it, if Binance keeps on burning BNB all the time, technically speaking they would have zero left one day, which we all know won't happen so they will stay at some point. However they will have a lot less in the long run because they keep burning it.
The way I see it, people need more and more BNB because it is getting used a lot, and people are buying it in bunches and yes this is increasing the price right now but eventually if the price of BNB reaches to 5k or even 1k+ that is going to mean that the gas fee will be super high for BSC and people will start to look for other places where it is going to be cheaper and they may prefer those destinations.
The way I see it, people need more and more BNB because it is getting used a lot, and people are buying it in bunches and yes this is increasing the price right now but eventually if the price of BNB reaches to 5k or even 1k+ that is going to mean that the gas fee will be super high for BSC and people will start to look for other places where it is going to be cheaper and they may prefer those destinations.
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.
I think all of us here have heard a lot about the burning of tokens or coins carried out by developers, and maybe only a few know the benefits of burning these tokens, I thank the OP who wants to explain in outline about the burning of tokens that often happens today, but if I may add a little about the definition of token burning, namely: Coin burning is a deliberate burning process to eliminate coins, so that the coins cannot be reused. 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.
The way the coin burning process works is by involving the developer who issued the digital asset, and to do this, the signature token will be entered into a wallet that cannot be retrieved by anyone and this wallet is called the "eater address" which can later be seen by all stains, however, the order will be frozen so that the status of this coin will later be published on the blockchain.
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.
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.
You are right and correct with your explanation on coin or token burning, but however I would like to add a thing or two.
In as much as coin or token burning is the process carried out to reduce the total supply of a coin or token, it is not in all cases that it leads to increase in price of the coin or token. Before now, a lot of project developers were doing it and it became a thing such that, once it is announced fomo will set in leading to price increase, but slowly a lot of people now understood that, there is more to it. That is, even coins or tokens with no use case will just announced token burning and gradually that hype died, thus the reason coin or token burning do not move a lot people.
On the other hand, you made an example with BNB, BNB is a very good coin hence the reason the coin burning leads to its price increase, but same cannot be said of a lot of coins and tokens out there. So do not be moved by all these projects announcing token burn, make your research and have a good reason to invest.
Coin burning does not always results in price appreciation if the fundermental factors that influence and assure the viability and longevity of such coin is not taking care of! There must be value creation, problem solving, and adoption (utility) before burning effect could be felt!
I am agree with your opinion. By my experience, i understand that coin burning alone won't make the price higher than before.
We can see for example BNB coin : the price of BNB in the 15th burn was better in than the prev burn, this proved the burn event doesn't always make the price increase. Value creation , problem solving and adoption, those you mentioned above are good and of course they are better than burn.
It's true that burning can increase the value of a coin or token that does it, but that's not the only way to do it, if the token or coin doesn't have something of value to offer investors, the spike won't be very significant, because it's obvious the utility and the function of a coin or token is an important thing in the development of a value in the market.
Coins or tokens burn is a process of decreasing total supply but it doesn't guarantee that it will up the price. Tokens burn puts positive impact only on Good coins/ tokens but burning supply of shit coins won't be fruitful. In the past few months, we have seen many new shitcoins which supply was huge like 1000T and they burned like 30% or 50% but it didn't impact on the price because all are shitcoins.
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.
Because not every token burn will increase the price. Basically, for a quality project, this is perfect news. But there are also many good cases of using this to take money from investors, and I think you need more time to experience it more.
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