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Let's talk about #Tokenomics.
Understanding the movement behind the tokenomics' word, will help you to get better results when it comes to investing in #crypto
Better understanding could lead you to be a successful investor.
Let's dig in a bit..
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Most of people are usually taking care about the number of tokens out there, what we should take care of is where the supply is right now and how fast the project will reach the Max Supply.
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To summarise, what we need to get better investment and how tokenomics can help us out?
The main things we want to know is:
- Where is the supply right now
- Where will it be in the future
- When will it be there
- How will it get there
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Let's take #Bitcoin as example and let's start replying to the above questions:
( $BTC is the easiest example, because there are)
- No Vesting
- No Team Allocations
- No investors unlock and so on..
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Where is the supply right now?
There are 18,989,868 at the moment of writing.
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When/How will it get there?
Assuming 10 minute blocks, here a graphic representation of the time that BTC needs to be at 21k supply bitcoinvisuals.com/misc-future-su…
In the case of Bitcoin, we can have a low risk due its nature (No Team- No Found allocated and so on).
7/10
Let's dig in some metrics, we talked about the Fully Diluted Market Cap
"The FDV is the current price multiplied by the max supply, if all tokens were in circulation."
Let's do some simple mats to understand how important is to do a bit of calculations before investing.
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Tips: Big difference between Market Cap/FDV, means that there will be many tokens released in the future, let's keep it simple.
Less difference between Market Cap/FDV = High wiggle room of growing.
More difference between Market Cap/FDV = Less wiggle room of growing.
9/10
Why?
The higher difference there will be, the more tokens will be out, in this case it is crucial to understand
- Vesting Period.
- How many tokens will be released.
- Will the price have the right demand to justify the future price?
10/10
Great investment start asking right questions:
How many token are allocated to the Team?
How the vesting will work for the team?
There have been private sales are better price entry?
Has the project have a great wiggle-room in the market?
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