Does coin burning really work and why do developers need it?

By Lazy Bear | Crypto and world | 28 Jan 2023

Against the background of the news that Floki Inu are going to burn as much as 1/3 of the tokens, I wondered if it was really effective?

Let's look at the example of this news.
Some newcomers think that by burning a token, you automatically raise its price and by burning half of your tokens, raising the price compensates for this.

No. Floki will burn several million dollars worth of coins, and the price has risen by only 15%.

So what's the point?

In this case, the developers want to increase the liquidity of the asset. Their goal is to reduce the commission by 10 times. And this will attract interest in this asset.

Of course, it's easier for developers to sell these coins and enjoy the profit. But here we are talking about the long term.
How successful is this solution? We'll see after the developers carry out the process of burning coins

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Lazy Bear
Lazy Bear

Crypto trader. Love crypto

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