I see many ICOs state that they will burn unsold tokens, is this just to increase price and/or crowdsale participants expect them to?
1 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.
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would freezing the tokens for a time, maybe years, give investors more confidence in the project or is burning the best option? Jan 2, 2018 at 2:34
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@CryptoWhat Freezing is also a good option. A lot of ico have some type of founder tokens that are usually frozen for a period of time, so those unsold token could be added to the already frozen founder tokens. It really depends on how the distribution of tokens was set up by the founders.– I.BJan 2, 2018 at 2:46