Hello friends, lot of ICOs failes to achieve 100% sale in their crowdsale. Most of the ICOs mentions in their terms and conditions that unsold tokens will be burned. My question is very simple " Is burning of token really helps ptoject?
". I am of the view that burning of the token doesn't help the project and I feel instead of burning unsold token it's better to use them for community and project development.
". I am of the view that burning of the token doesn't help the project and I feel instead of burning unsold token it's better to use them for community and project development.Investors are looking for a limited token supply. If you only sell 50% of your tokens but 100% of tokens planned for sale are going into circulation, it will water down the price for investors. Technically a token burn does not cause any problems on the supply side as most tokens work with enough decimals. In my ideal world a specific % of all token used in a project get burned, regularly decreasing the supply of the token supply. There is only winners in that. I do not know of any project who has problems because of a low token supply.
Investors hat it, if you dont burn unsold tokens. Example for that is LOCI. Many potential investors held back as they did not burn unsold tokens.