I often read and heard about burning tokens that were not sold when the ICO project was finished, I also knew that by burning the rest of the token was a strategy so the price of the token didn't fall, but if the DEV and the team didn't burn it was a crime? is there a requirement that the remaining unsold tokens must be burned?
Burning tokens is a tactic used to raise prices and reduce the amount of supply available on the market. The economic equivalent of this tactic is repurchase. We can hear from time to time not only the ICO projects or small projects but also many other projects. This process is as follows;
- The project team enters a market purchase order with the specified budget and provides the opportunity to purchase by clearing the existing sales orders one by one until this budget is exhausted. Then, these tokens taken by the project team are burned and removed from the market. In this way, the supply amount of the current token is reduced and the token price increases due to the purchase.
Although the Token burning process is a very successful tactic, not every project team can do it because it is a very costly method.