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?
I see current projects with a value they offer of 1 trillion will burn 50% after selling 50% and they will burn that 50% when they sell the coins they sell first. looks like this is some form of inflated value that will be inflated to hit some investors. Because they always think that if there is a plan to burn those coins in the future, the coin price will definitely increase significantly. This approach is also one of the marketing tactics of the project that makes investors happy because every time the coin disappears from circulation, the value increases, this is the way of many works and projects. this doesn't surprise me because these are the ways many projects are using these days.