I see many ICOs state that they will burn unsold tokens, is this just to increase price and/or crowdsale participants expect them to?
ICO – Why Are Unsold Tokens Burned After ICO?
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I see many ICOs state that they will burn unsold tokens, is this just to increase price and/or crowdsale participants expect them to?
Best Answer
Having the option to burn tokens allows the owners to control the supply of their tokens. The amount of tokens in circulations affects a lot the price of the token.
So some people might be more willing to invest knowing that the unsold tokens will not end up in the pockets of the owners and that those unsold token will be burned which has good chances of raising the price of the token.