Topic: Why are unsold tokens burned after ICO? (Read 221 times)
Some companies burn their leftover tokens after an ICO, but many also don't burn. I think some do so to increase the value of their token. Less tokens = less tokens to buy in the market, creating a larger demand, driving up price.
Unsold token if they are not going to be burned, owners will have too much tokens and they ll do what they want with price, and this make people to doubt about coin and owners to be trusted they follow this method and this effect positivly to price.
would freezing those unsold tokens for a few years give people more trust in the owners or is burning them almost a necessary signal to buyers about trust?
Probably because unsold tokens are worthless?if they burn these unused tokens the price of the distributed tokens will go up.
Because if they burned the unsold tokens,the supply will decrease that will cause price increase?
and do all ICOs burn unsold tokens after ICO ends?
Firstly some ICOs won't even plan their token offerings well, they just need money but later they realise that there is no need of so many tokens. So they either chose to burn the unsold ones or to distribute among the existing buyers proportionally. The first option is a good choice when compared to the second. 
and do all ICOs burn unsold tokens after ICO ends?
They burn the unsold token after ICO ends for them to fully control the flow of their token. The amount of tokens that is circulating in the crypto might affect the price value of the token. That's why most of the investors wants to invest in the ICO where the unsold tokens will be burned.
BEcause it wil make the total supply lower and that means that the token will be worth more and that it is more rare
and do all ICOs burn unsold tokens after ICO ends?
They burn the unsold token after ICO ends for them to fully control the flow of their token. The amount of tokens that is circulating in the crypto might affect the price value of the token. That's why most of the investors wants to invest in the ICO where the unsold tokens will be burned.
This is for keeping the supply of the coins low, otherwise people who had bought that coins would be unhappy.
Pretty sure they just send them to an address where they can't be accessed. They are still counted as having been created, they just can't ever be used/traded.
I see, so that's the reason why they always say that they'll burn whatever token is left. I am still wondering though how do they burn such tokens? Like delete or something?
many projects have in their whitepaper burn of tokens so as to ensure tokens are limitedly supplied. It also prevents dumping of the tokens and makes investors secured. To your second question, not all ICOs burn tokens. Some keep(freeze) the unsold and release it sometime later
And some only mint the tokens upon purchase (along with any additionals going to the founders- so you buy 1 token, 2 get minted, one goes to you the other to the team).
and do all ICOs burn unsold tokens after ICO ends?
Not all projects burn their coins, some keep them, but when the coins burn it is very honest with investors
Burning unsold tokens give investors the security about dumping coin. And also a lower supply of coin makes the coin more valuable in term of price.
Unsold token if they are not going to be burned, owners will have too much tokens and they ll do what they want with price, and this make people to doubt about coin and owners to be trusted they follow this method and this effect positivly to price.
Tokens are burned because the planned percentage distribution before the ICO should be kept intact. If they are not burned, the founders will have much more tokens in their disposal than they should have and can dump them on exchanges. Bad for the project.
Thanks for the explanation. Now I understand better the cause of burning coins
Tokens are burned because the planned percentage distribution before the ICO should be kept intact. If they are not burned, the founders will have much more tokens in their disposal than they should have and can dump them on exchanges. Bad for the project.
many projects have in their whitepaper burn of tokens so as to ensure tokens are limitedly supplied. It also prevents dumping of the tokens and makes investors secured. To your second question, not all ICOs burn tokens. Some keep(freeze) the unsold and release it sometime later
thanks for the info
you know if ICO investors look negatively upon ICO if tokens are not burned?
Some keep(freeze) the unsold and release it sometime later
you mean the founders just sell them afterwards or you mean they have a new crowdsale where they sell with some % bonus?
many projects have in their whitepaper burn of tokens so as to ensure tokens are limitedly supplied. It also prevents dumping of the tokens and makes investors secured. To your second question, not all ICOs burn tokens. Some keep(freeze) the unsold and release it sometime later
and do all ICOs burn unsold tokens after ICO ends?
Jump to: