Why is burning coins good?? | Bitcointalksearch.org

jossiel

hero member

Activity: 2842

Merit: 625

Quote from: Issac ! on November 15, 2021, 03:11:01 AM

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

Yes.

The first effect of it is whenever there's a valuable coin that announces that they're going to burn tokens with a certain fiat amount, there's going to be a rush from buyers which will make the price pump.

Second, after that rush of buying since it's just a temporary pump, the actual thing of burning is what's more reasonable than seeing it go up continuously.

But to mind you, a lot of projects that have also announced their burning but not the same success as the others.

Swapzone_pr

newbie

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The constant burning keeps a steady value of the token and also bets for a long term price rise.

hodlftw

full member

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Merit: 104

Santa Coin

I think while they can give a project exposure, it doesn't always workout. People associate burns with price increases, and while that can happen, it only will for favourable projects. I have seen burns done, and the coins go down in price post burn too. So it can be a buy the rumour sell the news type event, or it could be one that helps increase the asset price. Either can happen.

Issac !

newbie

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Merit: 0

As of late, numerous ventures have reported the burning of coins, but not everybody gets it what this means. This could be a handle by which cryptocurrency mineworkers or designers get freed of a certain sum of tokens by sending them to addresses that are not available to anybody. The burning of coins is being executed not since of the moo reasonability of the extend, but or maybe since of the crave of the makers of cryptocurrencies for awesome prospects. Thus, the engineers are attempting to decrease the overall number of accessible coins, whereas the made deficiency influences the development of their value. The burning of coins can conversation around the up and coming development of the extend and a conceivable increment in its esteem. For illustration, after the later declaration of a collaboration between Polygon and Newscrypto, the last mentioned declared that they chosen to burn $ 10M worth of NWC tokens this year. Thus, within the close future, ready to see a critical development of NWC cost on this news. What do you think about burning coins? Does this really affect the market value of the coins?

Topic: Why is burning coins good?? (Read 72 times)