Why is burning coins good - page 9. | Bitcointalksearch.org

ene1980

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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.

jostorres

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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?

I never agree that burning is a good thing because on the first hand, devs got options to create less number of coins or tokens but they add burning as a feature and minting massive amount of circulating supply. In short I mean, devs should not create demand by manually decreasing the supply. Instead of that, devs must work on creating value for their coins or tokens in more progressive way.

Unfortunately major platforms are these days having "burning" feature by default. This must be another thing which are kind of manipulation to lure naive investors. I am out against all such coins/tokens.

livingfree

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Quote from: DarkDays on October 22, 2021, 05:14:21 PM

Quote from: livingfree on October 22, 2021, 03:39:08 PM

It is actually a good thing to burn tokens.

But a lot of projects have found it as a marketing ploy just to hype their projects. Unlike those projects that have burning part of their road map, they don't have to play it as a marketing.

Yh, it is a system that I think now many projects implement because it 'sounds cool' and its real value thus is starting to get lost.

Though for serious projects like ETH or BNB token burning still means something and can lead to token value inflation as the number of tokens in circulation are reduced.

I suppose it depends on the projects you look at and whether their idea of a token burn has been on their roadmap since inception - obviously this doesn't apply much to new projects but it is a metric nonetheless.

No doubt with BNB and Ethereum.

Burning is really effective and that's why we're seeing the result of it. Aside from burning tokens as part of marketing and being used by other parts.

I'm now thinking if they'll also use by chance halving as part of their marketing too.

Ashli1989

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Currently there have been many projects on the crypto platform that have announced the burning of coins but they are very intelligently planned.The common man can not understand.They think that millions of dollars will be wasted,but if we look at this, this is a marketing ploy, the burning of coins is due to the will of the creator of cryptocurrency.This type of burning is just one part of marketing Strategy.For example, the announcement of the burning of any coin in a cryptocurrency can lead to a significant increase in its value.But I wonder why any project really needs to use this method? In fact, the process of revolt cannot be seen to increase its value if desired.

terrorJR

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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.

AwoCorporation

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The practice of combustion coins or tokens is indeed a problem, and it is true that it has an effect on an increase in coins from the result of the reduced supply of tokens or con who burns, but there are several things that need to be known that the combustion of coins that occur does not necapant instantly increase value From these coins, there are still other factors that must be fulfilled so that coins combustion becomes truly efficient, namely in terms of marketing and the use of the benefits of the coin itself, because of the benefits that can be felt by investors or fans, the increase that occurs will only be temporary.

gwdf1

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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?

I know that when burning tokens, developers decrease the supply. Consequently, the lower supply is, the higher price will be if demand stays the same. There is a similar situation on a stock market where buyback of shares means that the price will go up because of decreasing of a supply. So I think that price usually pump when there is news about burning of tokens.

Rocky993

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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.

adiebitsler

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Quote from: Kodok Bencot on October 23, 2021, 02:02:25 AM

Of course burning is a great way, proving that devs. not greedy by selling to the market, burning makes investor confidence increase because coins will decrease in stock and this will have an impact on prices that will skyrocket. many successful projects with burning tokens.

Not all successful projects have implemented burning of their tokens or coins, there are also those that do not burn but they are still as successful as others, and for BNB which has been trusted by many investors from the past until now, it is simply not because burning, but because the BNB Exchange is very well known and also provides many useful services to its users.

ansarose1

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For me, burning is good both or investors and holders due to the reason that the circulating supply may decrease and by that activity the coin that is burned could possibly increase it's price since some of it's supply is burned. But some also doesn't have the effect whether the coin is burned or not, it only remains the same price as it is.

Kodok Bencot

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Of course burning is a great way, proving that devs. not greedy by selling to the market, burning makes investor confidence increase because coins will decrease in stock and this will have an impact on prices that will skyrocket. many successful projects with burning tokens.

bahagia93

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Quote from: devil2man on October 22, 2021, 02:06:33 PM

originally this practice was used to decrease the quantity of existing altcoins and therefore maintain or raise its price, value but currently i do not know how useful this method is given the continuous unpredictable fluctuations of all markets

A little understanding from me for you, which is that every coin that uses this method is only to reduce the supply to make it easier for the team to manage when many fans are attracted to it, because without a lot of enthusiasts the value will remain the same and will not experience any increase.

Pelana vreo

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If the developer plans to burn the coins circulating in the market, it will increase the price of the existing coins, some developers are now getting used to burning coins by placing the code in the smart contracts they have created, just like when we trade on the Dex platform, some coins that already have a token burning system will reduce the number of tokens when we trade. This has been done by many developers to keep the coin price from falling easy dump

Semar Mesem

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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?

I think this is a marketing strategy to sound awesome, the burning technique mostly occurs on the BSC platform and has proven to be effective in getting the eyes to go there, in general burning is a good thing to reduce stock that is too large because the community is still small.

aprilnot

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Broadly speaking Burn tokens can affect market prices from a coin. This might be the fastest strategy increasing prices on the market. Many projects have use this way and proved successful. But I don't really like this, Burn tokens only causes a moment of hype. After all that price will not change much. I prefer to observe a growing project because of its progress, from the project that only runs in place, but suddenly burns tokens just to make a new hype.

Cadaver20

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Not all coin burning is good. Burning means taking some coins out of circulation and sending them to another address which no one has access to. As a result, coins are declining in circulation and prices are rising to increase demand. Many new coins try to take advantage of this. Burning some good old coin is good.

agustina2

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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?

Burning coins are always associated with the hype that the coin will rise in value. It's always what we see in some community discussion of a certain coin. They applied the idea the same in Economics there wherein when there's less supply, the coin will have a good value in the future.

For example, in Peculium, they recently burned a vast amount of supply and the devs themselves said that by doing that, Peculium will increase its price but nothing happened, or maybe just early to know the results.

In the end, we have the final statement regarding this topic.

Kavelj22

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

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.

Then why not thinking that Binance is using the same as other fake projects you have described. I read your comment by the hope to see why the burn can be a development phase.
As you explained, this burn process becomes the hype. However we should distinguish between the projects decided to burn a portion from the total supply because of determined reasons and those who program the Burn event in their roadmap before even lunching the product.

Fatunad

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Burning coins is just really good if the supply is unlimited and the minting of new coins is continous or simply having that infinite supply or shall we say that
coins does have billions of total supply then it is just good to have this kind of burning method but doesnt automatically means that price would be going up.
It all matters with the demand because there wouldnt be still no value of a coin on which demand isnt really there compared into those who do have big
total supply but the demand is high then expect that the value would really be much better.

Hypnosis00

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Burning coins has been a practice for many developers...what it makes good is they are decreasing the number of their coins, which helps to increase the market value. This strategy was something it gets the attention of the community since many projects had come to that point of burning their coins. Might this will be the last option to reach their target price. Never have seen any benefits but just the price increase, and indeed, actually, it is very effective.

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