What is coin or token burning? - page 5.

iphone5s

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Quote from: Teraboy on April 26, 2021, 07:57:33 AM

The purpose of burn to decrease the total supply but it must be taken from the circulating supply.
The burn must be done from the profit that already received by the company. This is what we have called that as a healthy burn. Some people may think that burn must be done from the pre-mined coin as well.
that's true but the main purpose of burn to decrease the coin on circulating supply and this will make the total supply will decrease.

I also add a little that by burning, making the tokens that have been owned by several investors and participating people experience an increase in price but many factors will support an increase in the price of a coin they hold. But burning will greatly make a difference to that token or the project.

Teraboy

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The purpose of burn to decrease the total supply but it must be taken from the circulating supply.
The burn must be done from the profit that already received by the company. This is what we have called that as a healthy burn. Some people may think that burn must be done from the pre-mined coin as well.
that's true but the main purpose of burn to decrease the coin on circulating supply and this will make the total supply will decrease.

Cleaner00

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Quote from: Zotak337 on April 26, 2021, 06:25:51 AM

then if burn is announced after all these it will surely make some effects

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.

Zotak337

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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

Cleaner00

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

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.

You have said that if the supply of any coin is reduced then its price may not increase. Because if it is not a popular currency then its price will not increase. However, you will know that burning coins without any demand is very rare. But if we look at bnb coins, we will get the result of burning.

anu1908

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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.

Cleaner00

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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.

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