What is coin or token burning? | Bitcointalksearch.org

nicolas1979

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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.

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, 10:42:09 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, 10:56:04 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, 03:02:17 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, 03:02:17 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, 07:50:18 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, 05:11:13 PM

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.

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, 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.

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, 10:57:06 AM

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.

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, 10:02:41 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, 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.

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, 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.

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, 03:02:17 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, 11:25:41 AM

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.

RussianEnglishTranslation

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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.

mdzahed134

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

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.

Yeah, a project team will plan to burn token when they see token price didn’t increase what they are expecting price. Binance burned token for many times, It’s huge potential project as per as market demand so i think with any random coin you will never comparison with BNB token. Shit coins will increase after burn token there are no guaranteed.

Alf_m.h

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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.

imstillthebest

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Quote from: bison on September 29, 2021, 08:37:08 AM

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

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 .

Quote

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

Jackl87

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

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 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.

Anguwa

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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.

bison

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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.

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.

Oneandpure

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Quote from: rjsolutions28 on August 26, 2021, 01:06:44 PM

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.

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.

How much percent coin burning and could you give detail about supply from this coin, I think if have developer brave like TWT coin burn almost 90% is very fantastic and make TWT price pump suddenly from few cent now almost reach $1. Not any developer want to burn their money but TWT team that very brave how to make coin keep stable higher price by burning.

minime0105

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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.

Quote

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.

rjsolutions28

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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.

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.

satsmainman

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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.

Oneandpure

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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.

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.

Devifajarina

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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.

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.

tygeade

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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.

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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.

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.
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.

Shallow

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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.

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.

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Quote from: bamb on August 24, 2021, 09:15:30 AM

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.

sammy21

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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.

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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.

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

DYOR,
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.

GreatArkansas

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Let's clarify something also here.
As what people believe that burning tokens for a particular coin will always result in a bullish or good for the price.
But for me, it's not always true, especially on what the project is all about.
Maybe for the short term, it is bullish, especially when they first announced it to the public. And addition, we should also identify the amount percentage of tokens they burning to the total supply.

I already saw a lot of tokens that got token burning but at the end, REKT.

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On that recent ETH fork then;

https://news.bitcoin.com/crypto-inferno-the-ethereum-network-has-burned-over-230-million-in-ether-in-17-days/

This is a coin where i do really recommend to engage on rather than on considering others out there which i dont see to be worth for you to invest on.
Its up to someones choice though but its better to take risk on something which had been known or does really have the community demand.

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Quote from: ?? on ??

the other purpose is to keep total supply low, maybe because the token has too many total supply its hard for people to see it pumping and with coin burning it can make the market pumping it because its gaining popularity because of the token burning event. but token burning still have main purpose which is for increasing its price although somehow price increase not only can be done with token burning.

Usually, those coins that have a continuous burning, that's the main reason for it. Lesser supply but higher value, they all know that it's going to happen so that there will be more holders to come.
But for some altcoins, despite of burning, they don't take a lot of attention and still their value remains the same because they're not popular and there's not that much demand.

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Quote from: Jaered on April 26, 2021, 09:31:02 AM

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

Indeed, that's the goal, because the simple concept is that the more the coin loses its value due to burning, the more its price will increase because considering the burned coins are becoming rarer.
and indirectly the focus of people will also increase the sale of the coin which when the coin is planned to be burned or something like that usually the purchase rate will increase.
the concept is simple but a concept like this is still very interesting and there are still many enthusiasts because by burning coins like this people's thoughts will change and think that the coins are getting less and less and of course it will be more expensive.

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

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 the burned BNB hasn't reached 50% yet. Maybe we can check based on the data they published on the official Binance website. Binance Completed 16th Quarter BNB Burn of approximately 1,296,728 BNB. Maybe you can check the whole thing at https://www.binance.com/en/support/search?type=1&q=burn

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Coin burning besides aiming to reduce the total supply and increase the price is also now used as a technique to attract potential investors to believe in investing there. usually coin burning is done during the crowdsale to make it more convincing to the public

Yes it is very clear what you are saying because after all it goes back to fundamentals,
not all by burning coins the price will go up so it can't be a benchmark,
but burning coins also has other purposes so I think it's still important

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Quote from: bamb on August 24, 2021, 09:15:30 AM

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!

What you are saying is very clear, because fundamental factors are things that always have a very large influence and have a very large effect, so if the fundamentals are still very weak on a coin, there is no meaning in burning it.

bamb

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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!

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In the crypto world, this happens a lot. Coin burning is a concept in the world of crypto digital assets, which has been adopted by a wide variety of coins and tokens. Although it sounds difficult to understand, but coin burning is a central mechanism that can prove to be a feature that will be used often.
In this process, investors believe that it will strengthen the value of the coin and can also help in increasing the value of the coin. so, the number of coins in circulation is small, then the value of the coin will be much higher.
Coin burning is the most effective method of increasing and stabilizing the valuation of coins and tokens.

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Quote from: kak uli on April 26, 2021, 01:08:34 PM

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.

if the supply is reduced its not always mean the price will be higher but if the token popular and have many investor it can have higher price because that means it have demand, it still depend on the demand but if the token total supply is too much maybe burning can be a solution because then it will fix the issue of too much total supply but the amount burned should also be many and not just very few coins because it will not give effective result.

GaxviiBuss

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You have said it all, in nutshell is a means of stabilising cryptocurreny project, at any point in time, so many project do this to make their coin scarce are and there by increase in value, have to project like that now Goma, the price is flying, though the project is still at infant stage but still doing well.

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Quote from: magnum1010 on August 24, 2021, 04:13:20 AM

First of all, not always the price increases, anyway it is a good support for the price as the offer of this token declines and considering that the demand is the same, the price can grow.
We don’t have to call the function of burning, actually, we can just send our tokens on 0x00000… address, it is also a way of burning tokens. But usually ordinary users don’t burn coins. It is a task of devs.

I think that there are few traders who would burn their earned coins, since the goal of every trader is to make a profit. Binance, which is the owner of BNB, directs part of the commission received from trading on the exchange to purchase this coin from the market, and then burns it quarterly. And such a strategy will lead to a constant increase in the price of BNB, which is based on a decrease in the supply of coins on the market.

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First of all, not always the price increases, anyway it is a good support for the price as the offer of this token declines and considering that the demand is the same, the price can grow.
We don’t have to call the function of burning, actually, we can just send our tokens on 0x00000… address, it is also a way of burning tokens. But usually ordinary users don’t burn coins. It is a task of devs.

MoneyJ

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From what I understand is that burning has got to do with supply and demand . This will have a deflationary effect to the ecosystem which the coin or token being the medium of exchange. Burning of tokens or coins is good to stabilize the value of it or make it more valuable.

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Many has this belief that if you burn tokens or if you burn coins, if the developers of the coin do that, what will happen is that the supply of the coins are reduced. That way, by reducing the number of coins available, you will make the coin more rare, and therefore the price will increase. The most well known of the burns is BNB. But there were others as well. XML and XRP are the other burns that happened. With the intention to make their coins rare and hence increase in price.

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Burning tokens is usually done by sending coins to an unspendable address. You can also burn bitcoins by using OP_RETURN to mark an input as invalid.

Counterparty was one an altcoin that required users to burn an amount of bitcoin to mint new tokens on their blockchain when they first launched.

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Token burning is simply a way of reducing the the supply of a cryptocurrency. This is often said to cause an increase in value of the cryptocurrency but that isn't always the case some token burns have no effect on the price of the coin because the coin itself is not valuable. However if a project is good and has value in the market let's coin in circulation will mean more scarcity and with most car sitting there will be an increase in demand for that coin and an increase in demand always leads to increase in price. So token butning works in both ways it's can I have a good effect on the price of valuable token or it has no effect at all

Ararbermas

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Burning token or coin is the common way to reduce the supply for the better performance afterwards.. Actually we can compare this to a boat that gradually sinking in the middle of the ocean wherein in order to save it, we should reduce the amount of passengers that can make it heavier, so that it will gradually move upward back to the top of the water and it can go to where is the next distination.. Simple as that if we will make a story when it comes burn token or coin. Wink

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There's a certain irony that tokens and coins that felt the need to create billions, or even trillions of coins are now looking to burn coins to make that coin seem more desirable at the same time as investors in bitcoin lament the fact that only 21 million coins will ever be generated.

DOGE COIN is probably the exception at this pint with its price mooning all the while not having (AFAIK) burned any coins - ever - even though it has billions on the books.

Fundamentals Of

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Quote from: Bitstar_coin on April 26, 2021, 01:28:56 PM

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.

I also find token burning awkward, even useless at times. If a project has its token gained popularity and use-cases, why burn them? To increase the value more? It has already increased in value because people find some worth in it. Why do they have to burn it?

If it is to make it valuable due to its scarcity, I don't think this will help them either. If they want to make value for their tokens then they need to make some working products that will be of use in real life and of their tokens as well

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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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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Quote from: Teraboy on April 26, 2021, 06:57:33 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, 05:25:51 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, 03:57:23 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, 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.

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.

Topic: What is coin or token burning? (Read 724 times)