Burning coin. Impacts on Price

[tarolog]

Burning coins reduces the total number of coins, which can lead to an increase in the value of the coin in the long run. The smaller the number of coins, the greater the chance of a rise in the price of a given coin - this is a well-known fact.

[hair]

Burning seems an effective way to increase prices, we know the price of Bnb has increased significantly after burning, this is the positive side. is there a negative impact too?

[Master107]

Everybody love Naruto but they don't give so much attention to clones. Okay, I'm not saying the burn tokens are clones. Just imagine quantity is not the issue but the quality. If the token is potential and promising yet has huge supply once burn will make the token more valuable.
In other hand, one token is not potential but look potential once burn the token value will not become more valuable. So the burning is not really matter at all unless the token/coin is really potential with meaningful use cases.

[TERMINO]

The burning of coin are done most of the time, to reduce the volume of coin in circulation with motive of increase the price of the coin in the long run. Because when there is scarcity, price are meant to increase due to the limited supply.

Token burn done to trigger the price to increase. The more the token has been burnt, the more chances of putting the token price to increase in short period of time or in the right time. Constant update and less supply are going to attract more investors knowingly whales or maybe traders. The token that has a burning system is perfect to buy and hold for long term.

[Aguacate_e]

I agree, but right now it is too early to find the most effective way to burn tokens.

Recently the BNB team did their 15th Quarterly Burn: https://www.binance.com/en/support/announcement/f32506708c0240f783250cde0bb79e1b

For me so far the most effective...

[Master107]

I agree, but right now it is too early to find the most effective way to burn tokens.

Recently the BNB team did their 15th Quarterly Burn: https://www.binance.com/en/support/announcement/f32506708c0240f783250cde0bb79e1b

For me so far the most effective...

Cake is also good in burning strategy that always triggered the price to increase. Another thing is the newly automatically burning and earning from every transactions happening without unlocking the tokens. Not to mention those tokens but they have a nice method the same as NextMoon.

[Debasco]

Burning technically has inverse relationship on price, because when a coin in burn their always limit in supply which will invariably lead to high or low scarcity and on the long lead to hike in price, so that is it from my view.

[Rafiq]

According to my perception coin burn does not effect the prices directly if it is done just for get rid of the extra or unsold tokens during the ICO but I think if the token purchased from exchanges by the authority and burn those coins then the price positively increase at the same time total supply reduce. Generally This kind of work is done by those who are always think positive and tries hard to develop their project. As far as I know that BNB project has progressed in the same way and get good benefit by applying this type of strategy.

Your idea is completely correct. Authorities usually burn unsold extra tokens during ICOs; This does not affect the price of the burn token. However, if the tokens are bought from the exchanges by the authorities and burnt, that is, the conventional supply of money is reduced, it has a long-term effect on the price. The lower the supply of tokens, the more likely it is that the value of the currency will increase.

[Seerge]

In theory, burning coins can reduce the supply of coins in the market, and this is usually done to increase the price of a Crypto coin. Some are successful in this way some are fixed and do not change, but most of the time after the burning of coins the price will increase because many traders and investors are interested in buying them.
But if we want to invest in a coin that is burning coins, we have to do some more research. study the coin, its history of change in price and also other factors that can affect it.

[gurunanakji777]

In my opinion, the better way is to decrease the circulating supply instead of the Total supply so that investors will also get benefited. If the burning is from total supply it would not affect the value of the coin much but some investors/traders did not understand this and when a project dev announces the burning of coins they jump to buy without second thought So one must always understand the difference between the burning criteria of Total supply or circulating supply.

[debra]

i think it is true that there are some companies who choose to burn their coins so that the price remains stable and goes up in the market. Every company has its own goals and I think that's great. of course, the investors also want the best results for them. There are companies that do that, some are successful and some don't change. therefore it is important for us to choose a good project to invest before

[Hope4life]

Token burning will work best if the project has strong fundamentals and demand and burning takes place in circulating supply. Burn will have no effect on low demand projects.

[Traderbtcc]

Token burn for sure has an effect on the coins price, burning an amount of token is a technique for reducing the total supply of that token thereby making it's price value to increase, if the supply reduces and the demand increases surely there will be a rise in prices. Let's take a look at BNB, due to the fact that CZ and his team members burns some amount of thier native token (BNB) From time to time, it's price has really been pumping.

[Confero]

From the experiences that I have experienced, and perhaps also experienced by many people. burning coins is done to increase the price, and it has been proven that this method is often successful and successful.

[Abubakar56]

From the little experience am having I believe when a coin is been burn it reduces the total circulation which makes a coin to be more scares and which lead to increase in price of coin because when the total supply is limited then the coin becomes scares and the demand becomes high which lead to increase in price.