Davide
@0xdavide
⭕When you decide to invest in a "long term" token (years), the most important thing to check is tokenomics. Low circulation with high FDV and presale are big red flags. ⚠️Low circulation means...long term many unlocks and inflation. If a lot of supply is unlocked over the years, even with the same demand, the price will drop. ⚠️Unlocks: many people make the mistake of believing that "unlocks" relatively influence the price because "it depends on VC and insiders whether they will sell or not". Wrong. On the day of the unlock nothing happens but it is discounted in the previous months (take a look at the price action of $Tia which went from $21 to $3 in 1 year). The same will be true for $Ondo which in the following months will have a "ballast" to carry around. ❌Do you really believe that a VC that is making 150x because he bought at a price 100 times lower than yours, will hold it over the years?
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Davide
@0xdavide
⚠️Farming/Incentive/Governance: other tokens not to hold long term are those given away as incentives (basically all farmable tokens from dex, yield farming, LRT/LSD or those of layer2 used to attract liquidity) and obviously those of pure Governance (this narrative was already weak 3 years ago). ❌These tokens are very often used by foundations to pay devs and teams that develop on chains and protocols. If you hold them long term you will become their exit liquidity. ✅A token to be a good long term investment must be: ◾Well distributed (community) ◾Have few unlocks (so supply at least 70-80% of the total) ◾Have demand/use case (i.e. holders must receive advantages in holding it. Think of $BNB that allows you to do launchpad, launchpool, receive small airdrops, etc. It's true, there are not many crypto/tokens that have similar characteristics, for this reason probably the only good long term investment is $BTC. In fact even $BNB and centralized exchange tokens have limits, think of $FTT )
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