With many ICO's not selling so much of their tokens or not reaching the hard cap, many of these token's price always plummeted after entering the exchange. With the excess tokens that are not sold during the ICO are being burned, it is really possible that a fewer circulating supply of tokens will make it rarer thus it is more valuable? More valuable meaning pricier thus each holder of token will get more from what they bought? Or it is actually the opposite? What is your opinion about?
Please don't hate me for my thinking. If you know that I'm wrong, please correct me.
The less supply of tokens the better. Because if their is a demand in the market surely the price will exceed above the ICO price. But it also depends on the projects and the type of tokens. Normally tokens with huge supply and used for paymentss or e-commerce projects don't normally burned tokens. Because these tokens will be use within the platform. Only those projects like mining are the ones will benefit from low supply of tokens. Because mining projects usually paid their token holders in Ethereum or Bitcoin for staking or quarterly dividends. With a ratio of 1:1, 1 token equal to 1 usd. So investors will probably buy in the market for more tokens for long term hold.