Please kindly share the name of the token, many deflationary tokens I knew are almost dead now due to lack of use case, investors are now smarter to avoid projects that have no real life use cases because in a very short time they will become worthless
A great example is $BNB, a solid project with a great number of supporters. Investing in deflationary tokens can benefit long term investors. Given that all fundamentals in the company's business remains constant, the token price will go up overtime due to regular token burns. Not looking at much the volatility, and looking at the historical data, $BNB has reached all time highs after every token burn.
I feel that binance is one of the few exceptions of the deflationary token system working rather than the norm here . Too many projects are trying to lure in ok investors with the deflationary token mechanics without any base fundamentals.
Burning a token without any fundamentals is burning something which never existed.
Token burning without a fundamental is exactly the issue here. Because this in reality doesn't shorten the supply the expected value driven by a round of token burning would not bring a long-term inflationary token price. If anything this will only be temporarily.
It seems to me that most project nowadays add this feature just to keep up with the trend and reap the short-term benefits this might bring, but not really projecting the real value a true token burn can entail, and this means that some investors lose big time, not to mention the deteriorated trust in the crypto system the project was built on.