📒 A series of conversations about trading:
🖋 Lesson: 67 — Token Burning
👼 Angel: What does burning cryptocurrency mean?
🦅 Falcon: It means permanently removing a quantity of coins from circulation, usually by sending them to an address whose funds cannot be accessed, with the aim of reducing the circulating supply.
👼 Angel: How does burning affect a coin’s price?
🦅 Falcon: Reducing the supply may support the price if demand remains steady or increases, but it does not guarantee a price rise. A coin’s value is also affected by demand, the project’s utility, and investor confidence.
👼 Angel: Does every burn mean that the coin will become more valuable?
🦅 Falcon: No. Some projects use burning for marketing purposes, and they may burn negligible amounts that do not actually affect the supply. So, you should verify the amount burned and its real impact.
■The takeaway:
🔥 Burning coins reduces the supply, but it does not create demand. Don’t be fooled by big numbers; look for the real value behind the project.
■Dedication:
🦅💌 To my angel, who taught me that scarcity alone does not create value, and that what deserves attention is what combines scarcity with utility.
للإطلاع على باقي المواضيع يرجى الدخول من هنا
$BTC
$SOL
$ETH
🖋 Lesson: 67 — Token Burning
👼 Angel: What does burning cryptocurrency mean?
🦅 Falcon: It means permanently removing a quantity of coins from circulation, usually by sending them to an address whose funds cannot be accessed, with the aim of reducing the circulating supply.
👼 Angel: How does burning affect a coin’s price?
🦅 Falcon: Reducing the supply may support the price if demand remains steady or increases, but it does not guarantee a price rise. A coin’s value is also affected by demand, the project’s utility, and investor confidence.
👼 Angel: Does every burn mean that the coin will become more valuable?
🦅 Falcon: No. Some projects use burning for marketing purposes, and they may burn negligible amounts that do not actually affect the supply. So, you should verify the amount burned and its real impact.
■The takeaway:
🔥 Burning coins reduces the supply, but it does not create demand. Don’t be fooled by big numbers; look for the real value behind the project.
■Dedication:
🦅💌 To my angel, who taught me that scarcity alone does not create value, and that what deserves attention is what combines scarcity with utility.
للإطلاع على باقي المواضيع يرجى الدخول من هنا
$BTC
$SOL
$ETH