2013: “initial PoW offering” for those who remember is semi-LM with real hashrate
2018: transfee mining is LM, started by Fcoin, popularized across all Asian exchanges includes Huobi,OK and Binance
2020 Defi farming is LM again
Trends come and go, liquidity never sleep
For real hashrate offering onpow coins, you spend the opportunity cost on hashrate (otherwise can mine Bitcoin or other w/ same algo) it can be clearly calculated in terms of ROI
since miners have to pay electricity in fiat, it will face constant sell pressure
For transfee mining, the only cost is cost of wash trading on the centralized exchanges, usually it’s ultra low
Since trader can also use the token itself to subsidize its trading fee there will be incentive to hold for a longer period until it crash
For Defi farming, the cost it’s the opportunity cost of capital, can be calculated on the best possible low risk yield out there
In cryptosphere such as lending interest on Aave but in fiat world we are competing against a negative yield/close to 0 bond rate, you can never lose
Defi farming, or yield chasing (foodcoins printing is a short term craze imo) will be running as a 4 dimensional arbing scheme between fiat and crypto until the base interest evens out
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