Quote from: Hazank on October 22, 2021, 05:33:23 PM

Recently, many projects have announced the burning of coins, but not everyone understands what this means.

This is a process by which cryptocurrency miners or developers get rid of a certain amount of tokens by sending them to addresses that are not accessible to anyone. The burning of coins is being implemented not because of the low viability of the project, but rather because of the desire of the creators of cryptocurrencies for great prospects.

Thus, the developers are trying to reduce the total number of available coins, while the created shortage affects the growth of their value.

The burning of coins can talk about the upcoming expansion of the project and a possible increase in its value. For example, after the recent announcement of a collaboration between Polygon and Newscrypto, the latter announced that they decided to burn $ 10M worth of NWC tokens this year. Consequently, in the near future, we can see a significant growth of NWC price on this news. What do you think about burning coins? Does this really affect the market value of the coins?

Burning tokens or coins aims to reduce the circulation of tokens on the exchange, so that price increases can be done easily, but if they can't recruit new investors who will pump up the price of coins, then burning coins has no effect on the price, in which case it would be nice if they stake. Staking can reduce the circulation of tokens on the exchange, and profits are also earned by token holders, the total supply is fixed.