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?
The thing is that I don’t get why all these projects will start a huge amount of coins, knowing very well that they would end up burning almost half of the coins later. What’s the need for all that? Isn’t it all an unnecessary process? Since they know that they are going to end burning almost half of the coins later on, it would be best that they just start up with a smaller or the exact amount that they would prefer, than starting with a huge amount and then burning them later on.
I just don’t see the need for all that. This is not something that I would see frequently before, but now it has become a trend that almost every new project now wants to follow the trend.