There are many of us who do not know what is burning coins or tokens, so I will highlight the details for them today.
Coin or token burning is the removal or burning of a coin from its total supply. We can call coin burning the amount of coins that will be removed from the total supply of a coin.The main purpose of burning all coins is to reduce the amount of coins.
Suppose you burn ltc coins, now suppose LTC has a total supply of 100000000, now if you want to burn 20% coins of this project, they can burn coins slowly.
Coin burn results:
The result of burning coins is that they will reduce the amount of coins from the supply. As a result, the supply of that coin will decrease and the price of the coin will increase. We all know that 50% of the bnb coins were burned. And as a result, the price of bnb coins is much higher now.
Decrease in supply doesn't automatically mean the price will skyrocket after burning, the burn only takes a few coins from the supply, its not an automatic way for a coin to gain more value, so many people always get this part of coin burning wrong thats why they fomo into buying any coin after there's an announcement of coin burning about to happen, some even fomo to buy coins just because the team promise say there's a burn mechanism, don't fomo into buying coins because they will get burned, without proper marketing even after burning the price can still drop instead of pump.