Token Economics Advanced Class
How to understand if a token could become big in the future?
A lot of people are still unaware of token economics evaluation. I wanted to take the time to provide a simple overview on Token Economics.
Lets get to it!💪
1/
How to understand if a token could become big in the future?
A lot of people are still unaware of token economics evaluation. I wanted to take the time to provide a simple overview on Token Economics.
Lets get to it!💪
1/
I recently saw great beginner overview on token metrics from @LadyofCrypto1
If you are new to #ICO #IDO small caps, then I would recommend you to first read over her thread👇
I see a lot of people talking shit CT so first of all:
/2
If you are new to #ICO #IDO small caps, then I would recommend you to first read over her thread👇
https://twitter.com/LadyofCrypto1/status/1470495331267887107
I see a lot of people talking shit CT so first of all:
/2
Why am I qualified to give this overview?
As CEO of @TheDaoMaker I've have helped design & launch > 80 tokens including $OMI $EGLD $XCAD etc
Joined & Studied Private Sale Metric since early 2017 of many tokens such $ICX $AVAX $SOL $MATIC
What questions to ask yourself?
3/
As CEO of @TheDaoMaker I've have helped design & launch > 80 tokens including $OMI $EGLD $XCAD etc
Joined & Studied Private Sale Metric since early 2017 of many tokens such $ICX $AVAX $SOL $MATIC
What questions to ask yourself?
3/
How much Value is Associated to Token?
CEXs $BNB $KSC $HT = Trading Volume & AUM
DEX $UNI $BNT $SUSHI = TVL & trading volume
Launchpads $DAO $POLS = Total Raise * Current ROI
Blockchain $SOL $ETH $AVAX = TVL & Transaction Volume
The more $$$ the better.
CEXs $BNB $KSC $HT = Trading Volume & AUM
DEX $UNI $BNT $SUSHI = TVL & trading volume
Launchpads $DAO $POLS = Total Raise * Current ROI
Blockchain $SOL $ETH $AVAX = TVL & Transaction Volume
The more $$$ the better.
How much of Associated Value is Converted to the #Token (Why to Buy it)?
#CEX Tokens: < 50% of Volume Fee
#DEX: $CAKE fees on Swaps 0.2% $UNI wants in future 0.05%
#Launchpads: 100% Winning chances are Based on Native Token.
#Blockchain: 100% of the tx fees Paid in Token
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#CEX Tokens: < 50% of Volume Fee
#DEX: $CAKE fees on Swaps 0.2% $UNI wants in future 0.05%
#Launchpads: 100% Winning chances are Based on Native Token.
#Blockchain: 100% of the tx fees Paid in Token
4/
Can the Token Retain Value (Why not to sell it)?
$BNB CEX: Launchpad/pool, Staking, fee discounts. @binance has > 28M Users many buy micro amounts of BNB and leave. Basically micro burns.
$BNB Blockchain: Total Wallets > 100M all buying at least 2$ of BNB. Micro Burns.
5/
$BNB CEX: Launchpad/pool, Staking, fee discounts. @binance has > 28M Users many buy micro amounts of BNB and leave. Basically micro burns.
$BNB Blockchain: Total Wallets > 100M all buying at least 2$ of BNB. Micro Burns.
5/
$Ethereum has around same individual wallets, but fees are almost 100x higher.
All used wallets buy at least $100 worth of $ETH to use the network, again essentially millions of micro burns.
Same applied to all Blockchains =
1 time used wallets * cost of tx.
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All used wallets buy at least $100 worth of $ETH to use the network, again essentially millions of micro burns.
Same applied to all Blockchains =
1 time used wallets * cost of tx.
6/
#Launchpads: $POLS $POOLZ $BSCPAD etc
Generally very bad at retaining value.
Once a #IDO participant wins, they can sell all their tokens yet keep all the Rewards. No incentive to hold after that.
This is why such tokens die once fresh deal flow stops
7/
Generally very bad at retaining value.
Once a #IDO participant wins, they can sell all their tokens yet keep all the Rewards. No incentive to hold after that.
This is why such tokens die once fresh deal flow stops
7/
$DAO $GAFI
The Venture Yield and Strong holder Requirements solved this for @TheDaoMaker
Once a user won, they need to hold $DAO or loose their vested tokens, which are then distributed to long term #stakers.
As a result 60% of users owned supply is locked for 1.5 years.
The Venture Yield and Strong holder Requirements solved this for @TheDaoMaker
Once a user won, they need to hold $DAO or loose their vested tokens, which are then distributed to long term #stakers.
As a result 60% of users owned supply is locked for 1.5 years.
To sum up:
How much Value is the Token in contact?
How much Value is converted into the Token?
How well does the Token Retain that Value?
Anybody that can combine these ideas with basic Metrics will have a BIG advantage at Long Term Investing!
That's were the big money is at
How much Value is the Token in contact?
How much Value is converted into the Token?
How well does the Token Retain that Value?
Anybody that can combine these ideas with basic Metrics will have a BIG advantage at Long Term Investing!
That's were the big money is at
There are a lot more aspects that go into correct evaluating a Token that I might outline in a future thread.
I want to point out that this was only meant to provide people with the most basics questions they should ask themselves before marrying any specific #coin.
I want to point out that this was only meant to provide people with the most basics questions they should ask themselves before marrying any specific #coin.
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