What is coin or token burning? - page 4.

DOH!

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Quote from: Cleaner00 on April 26, 2021, 03:02:17 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.

* Sorry, I saw the topic as the question, but you seem to have the answer. So the addition is.*
Token burning is the process of permanently removing that volume of tokens from the current circulating supply. It is a process that takes place by voting between a team or the community based on the interest and value of the project. Simply put, in the long run and the future, the value of the project increases. Burned tokens cannot be restored. It is a one-way and closed cycle, by smart contracts.
Detail https://academy.binance.com/en/articles/what-is-a-coin-burn

SistaFista

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Quote from: anu1908 on April 26, 2021, 03:57:23 AM

Quote from: Cleaner00 on April 26, 2021, 03:02:17 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.

Indeed, but at least the burn will make the supply reduced. The price of the coin can rising if either the demands are huge, or the supply is reduced.
Some whales often to use the bull trap when event burn indeed, but we shouldn't fall into their hand. Always search the project before we buy the coin, don't buy because the coin is burned.

Bitstar_coin

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I still find the token burning process awkward, while creating more supply, let it have a value then decided to reduce it from circulation, what is the logic behind it, why not just create the actual supply at the initial launch, bnb burn is a good example, imagine burning bnb worth a $ million, money that would have been useful and helpful, so far the burn has not reflect on bnb price.

kak uli

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The purpose of burning tokens is to reduce the supply and make the token price higher than before. I think a lot of coin developers do that and it is good for the future of the tokens it generates.

Arkann

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Burning a certain amount of a coin will in any case be beneficial and improve its performance in the cryptocurrency market. The same situation has already developed with BNB, since a large amount of Binance was burned. And also the Ethereum team announced information that a significant part of the commissions on the Ethereum network will also ignite after the 2.0 update.

Fredomago

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Quote from: oemar bakrie on April 26, 2021, 10:58:41 AM

reduction in the number of tokens that already exist, but it all requires careful planning and cannot be done instantly, it is necessary to gradually burn tokens ..
and the main goal is just to stabilize the selling price in the market..

Planning is very important while continuous development of the project is there to support the coin, each time the team burn coins it reduces the exact supplies that exist,

if the project really usable then the sure thing to happened is to see the increase in value, supply and demand will follow.

The more interested investors to support the project the more effective this burning or reducing of coins will take effects.

oemar bakrie

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reduction in the number of tokens that already exist, but it all requires careful planning and cannot be done instantly, it is necessary to gradually burn tokens ..
and the main goal is just to stabilize the selling price in the market..

Atang Sulaeman

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burning coins is indeed intended to reduce the available supply and the goal of increasing the price of the coin,
and usually the less the supply, the greater the price of a coin.

Strongkored

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Burning tokens or coins and having an influence on the price goes very well with BNB, why? it is because BNB is still being developed by someone who is well-known in the crypto world so that every step he takes on the project will really grab the attention of crypto lovers, and will influence the market.

Jaered

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It simply means destroying a portion of the said coin or token. This reduces the circulating supply, potentially increasing the price of the coin or token

capcaypro

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In short, burning tokens or burning coins is one of the techniques that developers use to reduce the supply of coins from circulation. this was meant to make the coins so rare that their value went up. because the more rare coins the potential for an increase in price is also getting bigger.
For example, the most recent week in this month, namely the BNB increase, can also be said to be quite good, regardless of the people who have fomo or the BNB hype can be called successful in burning coins.
its use itself is clear to increase the wealth of assets so that the fewer coins the more expensive the price and the greater the profit.

max6575

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developer with the token might have with different reason as disposing parts of token on written with the blockchain network as securing least on spares as investors and token holder gains with the higher level of price on revision to focus as more with the following draws of chart with the market.

TWW

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not all coin burns will have an impact on the price increase. all need market and community support as well.
what happened to BNB is one of the successful examples because of the support from the strong market.
what about the BNB burn in the previous period? Has there been an increase at this time? I don't think so.
BNB did so when market adoption was good. that's what makes coin burn successful.

Kabul

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That is why investing in a potentially burned token/coin gives us more profit and a higher chance to x5 our initial capital.

Binance coin is a promising project with a lot of development. The network is compatible with metamask and similar to ethereum chain but with a much lower fee. No one likes to pay more than $20 for a simple transaction

zasad@

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14th BNB Token Burn - January 19, 2021
https://explorer.binance.org/tx/A7E77CEE404B722EA2D0DF087337654877732FA8B0EC46A1C0A5236617011529

https://bitstat.top/blog.php?id_n=8981
"In total, Binance has withdrawn BNB 3,619,888 from circulation, which is equivalent to $ 165,791,000.
Over the past three and a half years, about 13% of the promised volume has been burned with a total value of $ 426,304,000. Despite the fact that this is an impressive amount for a 3-year-old startup, at this rate it will take about 27 years to complete it."

karanggatak

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burning will be very useful if the coin has a large community and holders who have a big influence to influence the market, burning will not be affected by coins that have few communities.
For example, every time there is BNB burning news, BNB will always experience a sharp increase because the community is very large, from the very large platform market that it has, so it is very natural that BNB at this time whenever there is news about burning always has a fantastic price increase.

cryptoknightt

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Reduce the total supply. This will increase the price, not all coins or tokens can become big just by burning. Because of the fact that there are many shitcoins with a total supply of billions and burning it doesn't change it at all, because the demand for these tokens has not increased either.

agg2702

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it is like that when the coin is burned automatically the price starts to increase because automatically the supply of coins is getting scarce so many are looking for it.
but actually not all coins that are burned will experience an increase in price. It is true that the average number of coins that are burned will make the price soar up but there are some coins such as junk coins that are worthless even though they are burned many times, they still have no price.

Dexion

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Quote from: Zotak337 on April 26, 2021, 05:25:51 AM

Burning isn't the 100% solution to price appreciation or surging, any team members that focus only on reducing max supply have nothing good to offer, good use case is the first thing to bring to the table followed by constant development and more partnerships, then if burn is announced after all these it will surely make some effects

Burning will actually have an effect on coins that already have a lot of coin holders, by taking advantage of the slowly increasing demand, then reducing the supply that is in the market, but indeed not all burning will cause a significant increase.

Skinny48

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As a matter of fact burning off tokens is nonsense because in the past there are many tokens that focused mainly on burning part of their tokens and coins max supply but in the end those projects end up a failure this is why I'm so against burning of tokens it is better to focus on projects use case than burning strategy

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