Many on CT who did not buy into the ICO ($HT and also did a massive airdrop back in the days) now have a free piece of Uniswap but dump it for non productive asset like iPhone/Xbox etc which will immediately depreciate once you own it
SMH
There are VERY few productive assets in crypto space
Most only got a P/M ratio (price per meme) instead of P/E
+ @UniswapProtocol operational efficiency is an order of magnitude higher than Binance and Coinbase
Let that sink in
Tbh it’s a more superior type of asset than normal exchange token where you rely on the team’s integrity to keep realizing token holders’ right, and u have NO say into future token economic (ie. Huobi launched a bunch other tokens after which largely dilutes its value ...
expect CZ to defend Cefi in terms of cost, usability, user familiarity, control for fund loss etc .. but the 2 advantages in the thread are really misleading. Debunk
1. Exchange is incentivized to maintain pumpability of coins it list hence its users are willing to stay
Pumpability may come from good vetting or fundamentals, but for most exchange IEO it has become a self-filling prophecy as “Binance will pump my bag” in reality is a crowd based reflexive trading pattern
Usually based on its past track record of “pumping IEO”
2. In Defi .. pools of capital can do same without central authority and fund custody
what’s most important, users can only expose to asset they want to hold long term instead of rushing market buy BNB driven by event, reduces allocation friction/portfolio shift
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