Why is burning coins good - page 5. | Bitcointalksearch.org

armanhusni

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Quote from: Hazank on October 22, 2021, 12:33:23 PM

Recently, many projects have announced the burning of coins, but not everyone understands what this means.

This is a process by which cryptocurrency miners or developers get rid of a certain amount of tokens by sending them to addresses that are not accessible to anyone. The burning of coins is being implemented not because of the low viability of the project, but rather because of the desire of the creators of cryptocurrencies for great prospects.

Thus, the developers are trying to reduce the total number of available coins, while the created shortage affects the growth of their value.

The burning of coins can talk about the upcoming expansion of the project and a possible increase in its value. For example, after the recent announcement of a collaboration between Polygon and Newscrypto, the latter announced that they decided to burn $ 10M worth of NWC tokens this year. Consequently, in the near future, we can see a significant growth of NWC price on this news. What do you think about burning coins? Does this really affect the market value of the coins?

Coinmarketcap Burning a coin or token depends on the extra supply and if that supply is too much and the team plans in advance that the price of that token or coin will be increased in the market through Bernie in the future to replace the project as stronger in the market. business strategy. In this case, the investor and everyone associated with it sees the profit face.

timerland

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It's not necessarily a good thing.

In fact, if a project needs to burn coins to gain traction, they probably don't have a lot to offer.

Beware of these projects because right now "burning" is a buzzword just as "DeFi" or "NFTs". Just like the 2017 ICO craze, highly hyped projects will likely suffer the same fate sooner or later.

TimeTeller

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Quote from: gabbie2010 on November 17, 2021, 06:53:42 PM

Quote from: taufik0911 on November 11, 2021, 09:49:06 AM

burning coins is a good thing because by burning coins it will reduce the total supply of the coins while the demand remains
it will make the price rise due to limited supply
this is just a simple economic theory in sales

Burning of coin is really a good idea provided that the developers purpose of doing it is achieved probably to increase the price of that coin just like the periodically burning of BNB by it developers, however some other developers might announce the burning their coin just to hype invariably to decieve or trick investors whereas the said coin has not been well managed by their developers consequently after investing in it, there wouldn't be any impact made by such investment.

That is very right. Burning is good to alleviate the price of the coin but that is if there is really happening on the project.
But if it is only done without developing the coin itself and just relying on the possible increase because of the idea of burning, it will be worthless.
You can easily see the progress of the project, by looking at how they are publishing their progress or accomplishments.
A lot are attracting the interest of investors by stating that they will burn half the supply, but take note of their developments.

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Quote from: taufik0911 on November 11, 2021, 09:49:06 AM

burning coins is a good thing because by burning coins it will reduce the total supply of the coins while the demand remains
it will make the price rise due to limited supply
this is just a simple economic theory in sales

Burning of coin is really a good idea provided that the developers purpose of doing it is achieved probably to increase the price of that coin just like the periodically burning of BNB by it developers, however some other developers might announce the burning their coin just to hype invariably to decieve or trick investors whereas the said coin has not been well managed by their developers consequently after investing in it, there wouldn't be any impact made by such investment.

ije07

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If basically burning tokens is to reduce circulation in the market so that it can cause a scarcity of the token and can make the price of the token increase, but if the trading volume on the token is high then burning tokens will greatly affect the price development of the token. market due to high demand and scarce tokens but if the trading volume on tokens is small I don't think it will have a big impact on its price development.

Jaered

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Burning is a hype word these days which has lost both its meaning and its use. What stops the project from initially starting out with the required tokens, less the burned ones? Investors should check it out

dbc23

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Generally scarcity of commodities give rise to inflation so if developers burn their coin to attain a high value for their coins then it's a nice prospect but recently the process is been overhyped by desperate developers and not all of those coin have attained a reasonable price value. BNB is just one of such projects and this has caused a skyrocket in the price value

riskarcher

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Quote from: darmin on November 17, 2021, 11:38:12 AM

Quote from: kojektea on November 11, 2021, 11:24:15 AM

Burning greatly affects market prices into a good trend. This method has been used for a long time. It proved to be very good to make the project more qualified and rare. Because the supply of the whole will be reduced and the tokens obtained are increasingly rare. Burning is well liked by the community and traders because prices always go up after burning occurs.

This is a good example of what happened to BNB. Developers burn existing coins for the purpose of paying service fees. There have even been several times the burning of BNB coins. As a result, this coin increases and is quite stable. with the loss of coins from the market or circulation, or increasingly rare and limited. This will make the price of the coin increase.

yes, especially burning coins is one of the marketing strategies to increase the value of coins and the market for investors who are increasingly interested. BNB is a leading platform that has the idea of burning coin that is what makes the value of BNB increase rapidly

darmin

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Quote from: kojektea on November 11, 2021, 11:24:15 AM

Burning greatly affects market prices into a good trend. This method has been used for a long time. It proved to be very good to make the project more qualified and rare. Because the supply of the whole will be reduced and the tokens obtained are increasingly rare. Burning is well liked by the community and traders because prices always go up after burning occurs.

This is a good example of what happened to BNB. Developers burn existing coins for the purpose of paying service fees. There have even been several times the burning of BNB coins. As a result, this coin increases and is quite stable. with the loss of coins from the market or circulation, or increasingly rare and limited. This will make the price of the coin increase.

TribalBob

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Burning coins may be a powerful way to increase the price of certain coins where the coins you have are decreasing in supply.
this method is very effective I think in increasing the price of one coin

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Quote from: kojektea on November 11, 2021, 11:24:15 AM

Burning greatly affects market prices into a good trend. This method has been used for a long time. It proved to be very good to make the project more qualified and rare. Because the supply of the whole will be reduced and the tokens obtained are increasingly rare. Burning is well liked by the community and traders because prices always go up after burning occurs.

Not all tokens whose supply gets burned, usually increase in price. Only those with high demand will be able to rise all the way to the moon. Coin burning is a tactic used by developers in order to attract investors into their project. It's no wonder how BNB became extremely valuable within just a few years since its creation. The cryptocurrency constantly burns its supply in order to remain as scarce as possible.

Ultimately, it's all about usability. As long as the coin you're investing into is useful, you can rest assured it'll last a lifetime. Just because a coin is burning its supply doesn't mean it's going to be successful. Play the game right, and you'll be on a road towards non-stop financial success. Just my thoughts Grin

kojektea

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Burning greatly affects market prices into a good trend. This method has been used for a long time. It proved to be very good to make the project more qualified and rare. Because the supply of the whole will be reduced and the tokens obtained are increasingly rare. Burning is well liked by the community and traders because prices always go up after burning occurs.

geegaw

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Quote from: taufik0911 on November 11, 2021, 09:49:06 AM

burning coins is a good thing because by burning coins it will reduce the total supply of the coins while the demand remains
it will make the price rise due to limited supply
this is just a simple economic theory in sales

A basic and rudimentary theory in economic books but the effectiveness in practice is remarkable, almost any project where practicing with this theory can change their whole fate in a short time, the most typical is binance's BNB, working very hard in burning coins and every time the burn message is displayed, BNB is constantly being refined to become a more expensive product. However, to learn how to reduce the supply without going negative and forcing users, developers will need to implement more features to get their coins back, the wall of surrender is located at this point

taufik0911

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burning coins is a good thing because by burning coins it will reduce the total supply of the coins while the demand remains
it will make the price rise due to limited supply
this is just a simple economic theory in sales

KaliLinux

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Quote from: el kaka22 on October 22, 2021, 01:52:45 PM

The sad part about this is that, "burning" became such a hyped buzzword that I see new projects starting with 1 trillion tokens and then burning 500 billion of them. Even if the coin worths literally 1 satoshi each, or even lower, that looks like they just burned millions or thousands of dollars at least. Which creates this amazing "marketing" for people who do not realize that starting with 1 trillion and burning 500 billion tokens is EXACTLY same as starting with 500 billion tokens, there is no difference.

All in all burning needs to stop being a buzzword and start being something great again. BNB is the most famous one, very very recently the other day Binance burned literally millions of dollars in a single day, that is the proof that burning could be good, they are actually making it very scarce with this method and the value goes up thanks to it, that is how burning should be done.

I totally agree with what you said in terms of, I too believe that this is the new marketing strategy for the cryptocurrency Projects. I have always thought about it too, why don't they just print/mint the specific number of coins/tokens that the projects needs and roll from there, but I soon realized that this is the new marketing tool because those coins/token burned are actually valued based on the current price of the project and at the end of the day, they make the investors see that they are reducing $x total amount and making the project more valuable.

JahriMeayer

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I think this is another strategy to promote a project and draw people concentration! If any new project is good, then they don't need to announcement of burning their coins! but they did cause they know, due to such news,, people will buy their coins crazily and thus project volume, price and liquidity automatically increase even before burning has done! Cause we all know what will happen after burning a portion of any coin!

Uang_kartal

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Quote from: Hazank on October 22, 2021, 12:33:23 PM

Recently, many projects have announced the burning of coins, but not everyone understands what this means.

This is a process by which cryptocurrency miners or developers get rid of a certain amount of tokens by sending them to addresses that are not accessible to anyone. The burning of coins is being implemented not because of the low viability of the project, but rather because of the desire of the creators of cryptocurrencies for great prospects.

Thus, the developers are trying to reduce the total number of available coins, while the created shortage affects the growth of their value.

The burning of coins can talk about the upcoming expansion of the project and a possible increase in its value. For example, after the recent announcement of a collaboration between Polygon and Newscrypto, the latter announced that they decided to burn $ 10M worth of NWC tokens this year. Consequently, in the near future, we can see a significant growth of NWC price on this news. What do you think about burning coins? Does this really affect the market value of the coins?

Burning is common practice..even though I'm a newbie, I know it's only shotcoin and ico..but my favorite tokens like BNB regularly burn every 3 months to get the best value for this bnb holder..even though prof of burn is not the same as prof of fork but in line with prof of stake .. even though we are foreign and worried about the burning process I think it is safe for tokens with strong fundamentals.. while waiting for the burning process brother usually always monitors charts or analyzes other coins / tokens?

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Quote from: ningrum on November 05, 2021, 05:36:06 AM

When burning is not always accompanied by an increase in demand and things like this I think have often happened,
and what you say is also true it won't have a big effect on the price,
but at least when we burn we have hope for the price

A better hope after being burned also still depends on two things, first on market conditions and the second is on the performance of the team who must really be able to show accurate evidence about the burning so that everyone's interest can be focused on the token or coin that is being burned.

ningrum

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Quote from: arifteguhr on November 05, 2021, 04:23:15 AM

Quote from: Karina0315 on November 05, 2021, 02:35:54 AM

The primary objective of coin burn is to regulate the supply and thereby stabilize the price. The process is similar to demonetization of currency or buy-back of shares. When the developers/miners burn the coins, the number of coins available in the digital currency market reduces.

If it's only for the purpose of reducing the supply of supplies, it does look good, but it would be better if the decreasing supply can also increase the demand so that it can greatly affect the price too, but if the demand is still the same as before, then the effect on the price will not be would be too big.

When burning is not always accompanied by an increase in demand and things like this I think have often happened,
and what you say is also true it won't have a big effect on the price,
but at least when we burn we have hope for the price

magneto

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Anyone can create a token and burn a portion of it.

This doesn't create value for the token. People are confusing utility with scarcity in my opinion.

I could create a super rare token with a circulating supply of 1 token forever. But at the end of the day, if it doesn't have any real usage, then it's not going to have intrinsic value at all.

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