Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Rehan Zakir on April 27, 2021, 08:24:23 AM
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The purpose of burn to decrease the total supply but it must be taken from the circulating supply.
The burn must be done from the profit that already received by the company. This is what we have called that as a healthy burn. Some people may think that burn must be done from the pre-mined coin as well.
that's true but the main purpose of burn to decrease the coin on circulating supply and this will make the total supply will decrease.
Please give your comments about burning coins technique.
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An excellent coin burning experience can be seen at the BNB every quarter. In my opinion this is a great option and it really works.
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If a coin has a good tokenomic there is no need for the token burn. Token burn proves that a project has unhealthy tokenomic. For instance XRP. Team still holds more than 60illion coins. This is awful. For instance, XLM did burn half of the total supply it did not affect the price that much.
But I agree, if there will be a token burn, it should be from circulating supply. Team should buy back tokens from the open market and burn them. And Binance really does this very effectively.
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Yes, I do agree with you the burn should be from circulating supply, not from total supply but some investor doesn't understand this trick of the project and start buying the coin in hope of bull move but soon coin start move back to their lower value. For Eg. BNB is doing burning properly that's why Binance is keeps rising.
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There are situations where the number of coins or tokens will reduce. Some projects have created rules in which a certain number will be burned, which means that they will be transferred into a wallet that cannot be recovered. Burning usually relates to operating fees.
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Burning coin has only one one clear movies and that is by making the coins more valuable than its previous price. Of course it is not just done without timing. The team make an announcement about when it has to be done to the crypto community and create high volume.
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I think this is happening just for few currencies like bnb is one of them because its burns quarterly. Few years back the price of bnb was below 10 usd but right now it is 550 usd plus. It is growing day by day. Because of burning the price of bnb is increasing day by day because the max supply is decreasing day by day.
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Of course burning coins will impact the price, it will increase for sure. If you find an announcement of the project that there will be burning token then grab the opportunity buy the coin because the price will increase but in temporary... just sell your coin right away once you earn profit.
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Burning coins is the simplest way to reduce the supply, but sometimes it raises the issue of aggregate supply if there aren't enough tokens for everyone.
Binance is the most famous company in quarterly burning coin, which helps holders BNB to believe that BNB's price will continue to increase over time. I prefer the unlimited aggregate supply of ETH but it is true that the burning coins has made BNB's price less affected during the last correction.
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Token burning mostly help to maintain the pruce of a coin sometimes it also helps to increase the price. If the burn is huge then we can see a big pump in the price if it was burned from the circulating supplies.But it is not necessary that burning will always increase the price but it is always good at at least maintaining the price of that coin
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If a project were to burn coins, they would have to buy back coins that were already in circulation and burn them. That will have a good impact and prices will definitely go up. This is the perfect time to buy it and hold it for a while, wait for the price to rise and sell it when it makes a profit.
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Coin flaring more often positively than negatively affects the price, the same Bnb tokens are flared and the price tag with each burning only gets higher each time
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Burning of coins is a good strategy to reduce coin supply and there by create more scarcity for the coin, and this in turn makes the coin more valuable in the market, but sometimes, burning of coins don't always affect price in a positive way that much, like the last burn binance did where after burning over 600 million dollars worth of bnb coins, BNB price dropped in the market, people have grown with this mindset that any time a coin is burn, it always increases in value, NO, coins that are already very successful will hardly show any positive sign to burning though it will definitely show in the long term, but for the short term, it's not always so.
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If the #DevelopmentTeam burns coins from the circulating supply, then the #DevelopmentTeam will do a buyback if they want to do that, the number of coins burned will increase the price of the coins because in theory investors will buy more coins before the coins are taken. burns, then who raises the price of the coin so that it can be up to 5x, that's how the crypto market works when information comes from a big project like BNB that will burn a coin, investors are indirectly pumping the coin price higher and we will see things like that without We have noticed that it happens over and over again because of a greater desire to own as many coins before they are burned or after they have been burned.
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The purpose of burn to decrease the total supply but it must be taken from the circulating supply.
The burn must be done from the profit that already received by the company. This is what we have called that as a healthy burn. Some people may think that burn must be done from the pre-mined coin as well.
that's true but the main purpose of burn to decrease the coin on circulating supply and this will make the total supply will decrease.
Please give your comments about the burning coins technique.
You are certainly correct Sir, once there is burning to happen in the coin or any coins that means the price surely increase because the supply will reduce the demand will go up as long as the burning of the coins will move accordingly something like that. This is also one of the tools of the team in each coin in my own opinion.
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Burning coins or tokens is now considered to be the best strategy to increase the value of the assets. Though not all burning can result into a sharp increase of the price, it is generally considered to be good as the lesser the supply the better it can be for coin's standing in the marketplace. Of course, limiting supply is just one of the many good factors to determine asset's viability as we should also be looking at the overall platform. Now, because of this concept, I am sure that there are coins that intentionally make their supply high so there can be many windows of opportunity to burn as this can also be a very good marketing story.
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I think burning coin it matters on price and it is the healthy procedure to reduce uninvested or dormouse token and coin .There are lots of coin in market which is not use in cryptocurrency and when lots of coin in market cap present there price simply down for that reason so it is true burning coin impact on price and it should be happened .
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This is the best way to reduce the number of coins in circulation and a very positive thing to increase the price of these coins, because after the notification of a coin burn, investors will flock to buy lots of coins on the grounds that the price will go up after being burned. Meanwhile, what makes coins go up are investors who buy before the burning begins.
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I would not say that when burning tokens, the project starts to grow immediately, in most cases, if the project is not interested, it drops significantly. As they say, there are no investors and there is no growth, for the net now, most projects do this to increase the growth of the project.
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I believe that the burning should take place from those coins that are bought on the market or by acquiring the exchange as commissions during the exchange, but it is designed for a long-term strategy and depends on the demand for the coin.
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We all know that when the supply of a coin is high, the authorities usually burn tokens to control it. Normally those projects are not healthy enough and have huge supply they try to develop the project by burning coin and reduce total supply.
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There are many reasons the developer burns coins to reduce supply, it will be done according to the voting or roadmap promised by the developer, I like the developer to do that, because the more coins burned the price will go up, but the increase in coin price does not always happen after the coin is burned out of the total supply.
However, investors will buy more coins for them to hold as the number of coin supplies decreases
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Another reason for coin burning may be to attract investors. Because after burning coins, the price of most coins goes up. As a result, investors invest in those coins in the hope of making more profit. For example, after BNB coin burn, its price has gone up a lot and many investors have invested here.
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Where the number of coins or tokens will decrease. Some projects have set rules that will burn a certain number, meaning they will be transferred to a wallet that cannot be retrieved. Burning is usually associated with operating fees.
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Usually, when there is a burning of any number of tokens, the price of the same token immediately begins to rise in price after these news, but I also often saw various tokens that did not react at all after news of the burning of tokens, and even there were cases that the price of tokens at all began to fall for unknown reasons, therefore, burning of tokens does not always lead to a pump.
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Usually, when there is a burning of any number of tokens, the price of the same token immediately begins to rise in price after these news, but I also often saw various tokens that did not react at all after news of the burning of tokens, and even there were cases that the price of tokens at all began to fall for unknown reasons, therefore, burning of tokens does not always lead to a pump.
I hope that the burn will very effectively affect the pumping of Ethereum, since the team has repeatedly stated that the transaction fees will be reduced.
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Burning means reducing the token supply from the circulating supply. So after the token burns it obvious, the price will increase because the total market cap remains the same but the circulating supply is reduced. Too much coin in circulation can reduce the price over time so token burn is a effective way to keep the price stable.
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Maximum Burning type token price so strong up like everyone see last when Burning BNB token almost price to tha moon so Burning type token price great move
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Mined coins never burn tokens. In the cryptocurrency market, those who have long-term plans, that is, when different authorities want to put their currencies in a better position, spend on staking plans or promoting other sectors. Authorities make such decisions when the condition of the various tokens does not improve. However, I think such a decision is not undesirable for some projects. There are many reasonable reasons to burn tokens. So planning and attachment productivity, the future of more tokens will have to be planned with the future of coins. Then the right decision at the right time can take any coin to the pinnacle of improvement.
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Coin burning is mainly done to reduce the supply of coins. This coin burning largely depends on the project. If the project thinks they need to reduce supplies, they can start burning coins. Coins, however, are burned when the coin becomes excessive and the value remains low. However, when the coin is burning, the supply of coins decreases and then the price of that coin is affected.
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If a coin has a good tokenomic there is no need for the token burn. Token burn proves that a project has unhealthy tokenomic. For instance XRP. Team still holds more than 60illion coins. This is awful. For instance, XLM did burn half of the total supply it did not affect the price that much.
But I agree, if there will be a token burn, it should be from circulating supply. Team should buy back tokens from the open market and burn them. And Binance really does this very effectively.
I so much agree with what you said, some coin burnt their supplies yet it doesn't reflect on their price, but saying a coin as an unhealthy tokenomics if it were to be burnt, does that means even BNB as an unhealthy tokenomics, because of the way CZ burnt it frequently
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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.
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This is one of the ways of how burning coins work. We can get it fr the link source below:
https://academy.binance.com/en/articles/what-is-a-coin-burn
The aim is to decrease the supply and of course, it will give an impact on the price. A more limited supply of coins will impact to a higher price, it is commonly done like this.
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Coin burns, especially the quarterly options, are good measures projects use to attach some demand and less supply to the crypto, thereby pumping the price. It assures one the coin is safe for a long hodl
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I said yes it could increase the price of the coins because it was certain that the supply of coins would decrease if burned.
We can see an example from BNB which is often burned every quarterly and I have witnessed it very carefully millions of UD are burned just like that.
Then Pancakeswap coins are also often burned and the price for Pancakeswap is now over 40 USD. Amazing!
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The purpose of burn to decrease the total supply but it must be taken from the circulating supply.
The burn must be done from the profit that already received by the company. This is what we have called that as a healthy burn. Some people may think that burn must be done from the pre-mined coin as well.
that's true but the main purpose of burn to decrease the coin on circulating supply and this will make the total supply will decrease.
Please give your comments about burning coins technique.
Of course, burning coin will have good impact on price, because Burning coin to reduce circulating suplay, It will make total suplly decrease, and the price will increase.
I think It is the best way that development could do to keep the price, lately BNB has burned coin. That has good impact for BNB price now. Current BNB price is $ 613, Its amazing. Hopefully will touch $ 1k soon.
Several new coin burn their coin at pancake to reduce total supplay and to keep the coin price.
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Burning coin is always good news for investors. It gives a signal for price increase. Because burning coin reduces the circulating supply of the coin which helps to increase price. Some companies burn token for increasing the worthiness of the project and also increasing the price. Though some make question about unhealthiness of the token supply, it positively influences the price.
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Burning coins will less the numbers of tokens/coins yet the price is potential to increase before or after burning. Investors will buy before burning schedule because they know the exact prediction the price will increase soon. Lesser the tokens will make noise and good credibility.
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I said yes it could increase the price of the coins because it was certain that the supply of coins would decrease if burned.
We can see an example from BNB which is often burned every quarterly and I have witnessed it very carefully millions of UD are burned just like that.
Then Pancakeswap coins are also often burned and the price for Pancakeswap is now over 40 USD. Amazing!
Yes brother you are saying right. Burning mechanism impacts on the price of a coin. And there are many examples of coin. After Cake burning starts the price is blasting now. And it will soon hits 100$.
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Another reason for coin burning may be to attract investors. Because after burning coins, the price of most coins goes up. As a result, investors invest in those coins in the hope of making more profit. For example, after BNB coin burn, its price has gone up a lot and many investors have invested here. However, when the coin is burning, the supply of coins decreases and then the price of that coin is affected.
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Another reason for coin burning may be to attract investors. Because after burning coins, the price of most coins goes up. As a result, investors invest in those coins in the hope of making more profit. For example, after BNB coin burn, its price has gone up a lot and many investors have invested here. However, when the coin is burning, the supply of coins decreases and then the price of that coin is affected.
Yes, you're right. Burning coin could attract investors to buy coin before burning. I think the project team will announce when they will burn the coin and how much.
BNB is one of the success of burning. After burning BNB price is going up and I think It is the best way to reduce total supply.
I also see at pancakes swap. Several coins have burned and more valuable.
So, burning coin will have good impact on price and will go up.
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Now there are many new coins are developed in BSC and their total supply can make your head hang. Recently i made entry in few of those projects like MNDAO, SafeBTC, SAFEToken and their circulating supply first time made my headache to calculate. This type of project is only based on whitepaper, website and pancake swap. They have no proper plan of business. Investors are affected in every transaction with 5-13% slippage which is being used for burning supply also. I don't like this idea at all although i made losses and came out from this type of shitty tokens. Only burning coins won't put impact on price, we have to bear in mind.
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The purpose of burn to decrease the total supply but it must be taken from the circulating supply.
The burn must be done from the profit that already received by the company. This is what we have called that as a healthy burn. Some people may think that burn must be done from the pre-mined coin as well.
that's true but the main purpose of burn to decrease the coin on circulating supply and this will make the total supply will decrease.
Please give your comments about burning coins technique.
IMHO, I think it depends on the popularity of the project because if the project is unknown those burning mechanisms are just an ordinary event without any significant effect on the project's coin/token price, But if the project is already known to many those coin/token burning events can bring any positive results to the project's coin/token price.
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The purpose of burn to decrease the total supply but it must be taken from the circulating supply.
The burn must be done from the profit that already received by the company. This is what we have called that as a healthy burn. Some people may think that burn must be done from the pre-mined coin as well.
that's true but the main purpose of burn to decrease the coin on circulating supply and this will make the total supply will decrease.
Please give your comments about burning coins technique.
IMHO, I think it depends on the popularity of the project because if the project is unknown those burning mechanisms are just an ordinary event without any significant effect on the project's coin/token price, But if the project is already known to many those coin/token burning events can bring any positive results to the project's coin/token price.
in any case, burning will positively affect only a promising project, in order to strengthen investor confidence in future prospects, increase the already existing value of coins, and also influence other cryptocurrency users who may turn out to be potential clients.
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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.
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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.
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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?
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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.
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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.
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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...
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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BNB did some burning of their coins in circulation invariably reduced the total coins in supply consequently had a great impact on the price the developer (Binance exchange) want BNB to favourable compete with ethereum with the introduction of BSC a similar project to Ethereum ERC20 although the price of ETH had reached $4000+ compared to BNB at $600+ however BNB still the potential to pump in the nearest future.
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Burning part of the coins, is it the same selling coins? As I understand it, if the owners of the project want to burn part of the coins, they will simply sell this part of the coins to an unknown source, this mechanism does not always have a good effect on the coin, if only the price tag of the coin has grown to heights, then part of the coin can be burned, and if lower classes, I see no reason to do this.
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Burning part of the coins, is it the same selling coins? As I understand it, if the owners of the project want to burn part of the coins, they will simply sell this part of the coins to an unknown source, this mechanism does not always have a good effect on the coin, if only the price tag of the coin has grown to heights, then part of the coin can be burned, and if lower classes, I see no reason to do this.
I don't think that is coin burning. When crypto projects burn part of their coins, this means those set of coins will be destroyed and removed from circulation thereby reducing the total number of that coins in circulation which should impact the price positively however this has not been the immediate case for BNB but the coin has a good potential to grow because of BSC in general and what they provide to the crypto space now.
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These are just some of the goal-setting shareware that you can use. Some projects have given new rules in which a certain number of people have been burnt, which means that there is no solution in this pathway that cannot be understood. The tally of the is usually from the operating fees.