RE: WOX token goes deflationary! A move in the right direction…
Sick of these burn stuff...almost everyone become token ecomists doing burns...
That stuff was damn hot at one time when Binance started BNB burns, and that drove price, still does. But that time this token burn stuff was new.
Now its so common...
I believe the utility of the token is to drive price...although major project ETH done burns, terra done burns... but they work for them because those tokens have high utility. You need ETH tokens for gas fees, that Blockchains is very highly used, similarly for terra luna coin is hot in demand for USt stable coin issuance and burn workks with this.
I think when coin has good utility, then burns work, else no, its a gimmick.
I am not a WOX exchange fan so I won't know...but its interesting now Steem is bringing value to Tron Blockchain indeed.
So steem people would go to tron to create projects, tokens etc...its innteresting.
Now that its free of justin sun, though not his influence and seems to be popular because the USDT tron network integration is helpful for withdrawing stuff with low fees, I feel Tron is well has some utility not shit coin or project for sure...
Its interesting.
I really hope all you WOX users benifit with WOX, making use of your idil TRON tokens earned in DEFI is pretty cool!!
hi @mintymile
In my opinion, buy-backs are nothing new. In stock market it had been taking place for years already.
The only new thing is that in crypto-space those tokens are being send to "null". Which gives more confidence that noone will ever use them and dump them back on the market.
You see ... and I'm not sure why so many people are hoping that UTILITY will drive the price.
Is price of gold or silver driven by it's utility? Are prices of tesla, IBM or any other stocks driven by utility?
Not really.
In my opinion, it is crutial to understand that it hardly matters if demand is coming from buy-backs and burs or is caused by investors. Or maybe some utility is allowing to bring more demand.
Demand is demand. End of story.
What matters is ensuring that demand will not be overpowered by supply (selling pressure). So on one hand it is important how many tokens are being issued into the market and how many are being hold by people.
Great example: HIVE - it's demand is so much smaller than amount of tokens being "printed" on daily basis. But price is growing. Only because majority of HIVE users do not want to sell.
That's what matters.
@crypto.piotr,
your right...utility increases demand right. Gold has utility as store of value, hedge against inflation or safe haven asset.
Also, sometime we have to sell and make profits right?... selling pressure will some, but overall in the longterm besides all that selling we have to be in profits.
That's possible only if that coin has good fundamentals and utility to keep being on demand!!
Utility drives value, yes. But still, there's need for some additional drives. Token burn has proven efficient over the years. WOX is a little different as the burn is to maintain the price peg.