Why is burning coins good - page 8. | Bitcointalksearch.org

terrorJR

sr. member

Activity: 1302

Merit: 250

Quote from: ene1980 on October 23, 2021, 04:25:49 PM

Quote from: terrorJR on October 23, 2021, 12:13:05 PM

simply by burning this coin will make the coin become less and more rare.
when we talk about an economic system that deals with scarce goods, it will automatically make these goods more expensive than before because of the scarcity.
as well as in coins because as it gets rarer and less and less in the auto supply the coins will be more expensive in price.
but maybe this coin burning only applies to coins that are fundamentally good like with binance with its bnb and not all coins that are burned will be better.

The Binance team holds 40% of the coins which is over 80 million and the next 10% in the hands of seed investors and the rest they sold to the public, now what is the point if they keep on burning the coins and make them valuable. They should release the coins they are holding and try to make the market more decentralized rather than holding majority of the stakes.

for now your words are true but of course with the coin burn I think the use will still be there but it would be better if they let go of the coins they hold I think this will be better because indeed with this it is indirectly released the coins they hold then it is not impossible that binance will become more decentralized as you say.

herurist

sr. member

Activity: 1680

Merit: 259

burning some coins for a project is indeed a pretty good thing to do, in addition to increasing the marketability of the burned coins it is also good for pumping coins to be healthier and greener.
because basically a system like this is still the same as the previous systems with the hope that when the supply of goods or coins that are burned is getting less, the price applied will be even more expensive because the increased need is inversely proportional to the scarcity of goods.
but not all projects that stipulate something like this can run well because again, of course, investors see progress in both the whitepaper and roadmap as a reference.
If the progress for the future is good, of course, burning coins will be very useful, but when the progress is not good, burning coins will be useless.

AwoCorporation

member

Activity: 296

Merit: 10

Quote from: ?? on ??

The main purposes of burning of coin/token is to make sure that its current market price is stable and sustainable. In this way as well it can create a good pumping event of that certain token/coin that is being burned.

This kind of coin burning is very necessary for coins that have a lot of inventory, because by reducing the existing supply, it is hoped that the coin will not experience inflation and can stabilize the value of a coin, and this is also usually used as a powerful marketing strategy to pump up the value of coins that are sold. burned.

Fivestar4everMVP

legendary

Activity: 2422

Merit: 1083

Leading Crypto Sports Betting & Casino Platform

Well, yes, burning is good, and it does have some good effect in the price of the coin immediately or later in the future, as it reduces inflation and at the same time increases scarcity.
But like a member here already said, some project developers, most especially in the meme coin trend, use the act of burning to fool many ignorant investors into investing or buying into a the project when normally, they shouldnt have, like the scenario a member shared here where a team launch a project with 1 trillion tokens, and burn 500 billion tokens, causing noobs to start buying into the project when this kind of burn isnt really a burn, I've come across this kind of projects severally, and this doesn't say good about such a project at all.

Rahman11

sr. member

Activity: 1428

Merit: 250

The practice of Coin Burning is common in the crypto industry and is quite simple to implement. Many projects use coin burning to preserve their assets supply and demand ratio. Reducing the total volume of coins, theoretically, leads to their value increase, provided that current demand indicators are maintained.

Pejoh Asu

sr. member

Activity: 1484

Merit: 254

Quote from: airdata on October 24, 2021, 04:49:13 AM

Burning is a Very effective system in crypto market, Developer always burned their coin when they understand that Their coin always will undervalued for their huge supply, then they decided about burning, and also have another way for token burning.

This is a technique to reduce stock so that the price will go up, usually this is for coins or tokens that have a large amount, one project that I know is actively burning 1 billion per day is Goma Finance is a project that has burned more than 88% of the stock and this is effective for make investors more trust with devs long term plans.

Al Qiyamah

full member

Activity: 994

Merit: 100

Actually, the benefits of burning tokens/coins are good because they can keep prices stable and more valuable. But sometimes there are also projects that do token burning but don't have much effect on the token itself, it could happen because there are still a lot of circulating tokens, meaning that it doesn't make the token feel scarce as the main purpose of burning tokens is to remove the token completely from circulation and can't be used anymore.

airdata

hero member

Activity: 1148

Merit: 501

Burning is a Very effective system in crypto market, Developer always burned their coin when they understand that Their coin always will undervalued for their huge supply, then they decided about burning, and also have another way for token burning.

Gayong88

member

Activity: 1540

Merit: 22

My view is about simple burning for either NWC coins/tokens or others. If the demand is increasing but the supply of coins/tokens is getting limited, you can imagine what will happen in the future and this close example is here: https://cryptopotato.com/binance-coin-approaches-ath-as-14th-bnb-burn-to-happen-in -48-hours/ I haven't felt it yet, but when it's close to 100 million coins, it's just the same with NWC.

fuguebtc

hero member

Activity: 1960

Merit: 537

Leading Crypto Sports Betting & Casino Platform

Burning coins are used as an advertising campaign adopted by most projects. IMO, burning coins will help that coin avoid inflation, the coin will be more stable and sustainable after each coin burn cycle takes place. In addition, the burning of coins will cause the supply to be limited and the demand for holdings to increase causing the coin value to increase.

19Nov16

sr. member

Activity: 1722

Merit: 252

By burning it will reduce the stock and of course will make the price increase, this is a good strategy to convince users and proven effective, although burning but it takes a lot of money to burn, like I've done in some tokens but after burning then get a bonus from devs.

vermigerous

member

Activity: 489

Merit: 16

www.cd3d.app

As many have said that burning a coin could be good for a project, it can create an upward pull or increasing effect for the price of that coin in the crypto market since aome of it burned or lessen it's circulating supply. Buring coin projects can be a good for a long term investments, burning coins could also incentivizing traders and investors, also it could maintain the price peg of stable coins.

harizen

legendary

Activity: 3122

Merit: 1398

For support ➡️ help.bc.game

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

What do you think about burning coins? Does this really affect the market value of the coins?

Since most crypto enthusiasts associate and believe burning coins will trigger the price increase of a certain coin, we can conclude that it will affect its market value.

Technically, it should as supply and demand play a big role but in crypto, without hype and popularity, burning coins are not enough to trigger the pump.

Wawa2013

sr. member

Activity: 1666

Merit: 268

Quote from: Luqman on October 23, 2021, 06:59:40 PM

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

Does this really affect the market value of the coins?

It does, it brings impacts to a coin value. There are already many developers burning their coins, then the price of the coins can increase instantly in the market. In theory, burning means decreasing the total supply. It makes the number of coins become less than before. In this situation, the price of the coin can be higher since the number of the coin be more limited than before. You must know the economic principle, right? When the stuff becomes rare, the value to be more expensive.

Good projects should indeed have a limited supply and a burning coins plan must be carried out, in order to make the value of the coins increase.
Therefore, usually if there are projects that provide a schedule for burning coins, investors will immediately buy the coins, because usually the price
will rise instantly and this is an opportunity to make a profit. This method of burning coins is done by developers to attract investors, and has proven
to be effective. But it depends on the project too, if shitcoins are planning to burn their coins, it still doesn't make the shitcoins worth buying.
So we as investors still have to do research and analysis to choose coins that are suitable for investment.

Luqman

sr. member

Activity: 826

Merit: 263

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

Does this really affect the market value of the coins?

It does, it brings impacts to a coin value. There are already many developers burning their coins, then the price of the coins can increase instantly in the market. In theory, burning means decreasing the total supply. It makes the number of coins become less than before. In this situation, the price of the coin can be higher since the number of the coin be more limited than before. You must know the economic principle, right? When the stuff becomes rare, the value to be more expensive.

TomArayaSlaya

member

Activity: 812

Merit: 10

https://hovr.site/

Why does the project need to burn in the first place I see project tagging these burns words and I think to myself Why not just start with lower coins instead Look I dont think burning is not a bad mechanism I just see it been misused in lots of project.. If its necessary like ETH burn Luna burn or cake then by all means burn ahead But shitcoin with shitburn is more like continuation to been shitty Watch out

Doell

hero member

Activity: 2156

Merit: 531

good for the product to be able to control the price at the point the team want ,reduce supply to keep it under control making it easier for traders or investors to push prices higher than before and so far this has been very helpful ,we can see together also special in bnb the price has increased even further better

Eureka_07

sr. member

Activity: 1764

Merit: 260

Binance #SWGT and CERTIK Audited

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

Does this really affect the market value of the coins?

Yep. Burning does really affects coins' value as the supply is being cut down. Again, it falls under the law of demand and supply. More supply, could lead to lower price and vice versa. However if there's no demand, nothing will happen, probably would lower the price gradually.

tvplus006

legendary

Activity: 2268

Merit: 1655

To the Moon

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

...Does this really affect the market value of the coins?

Burning coins necessarily affects the price, but it may not happen immediately, but after a certain period. But a lot depends on what percentage will be burned. If this is a small percentage of the Circulating Supply, then the market may not notice this and, accordingly, the price will not change.

the ghabbar

member

Activity: 588

Merit: 11

Futiracoin.com

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?

The project being carried out is not based on achieving the stability of the token value, so that the loss of value due to supply requires burning, although this condition has not actually been carried out, this partek is carried out to reduce the number of existing altcoins, so that it is quite easy for them to increase the price. this is almost done by other coins, but not all of them succeed in the specified target, and I don't really respect and believe in this pattern.

Topic: Why is burning coins good - page 8. (Read 1144 times)