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Davide
@0xdavide
📈Very often I hear/read the phrase "I invest in this token because it is a good project". This reasoning is wrong: "Good project" ≠ "Good investment". When you invest in a token you should ask yourself what the token is for, if it has demand and unlocks. There are good projects with: 1) Bad tokens to invest in 2) Tokens not integrated into the ecosystem 🔹Think about PancakeSwap or Curve. Surely they are 2 great projects but the $CAKE and $CRV tokens are bad investments because they have emissions and little demand. 🔹Cosmos Hub is a great functional ecosystem developed on Cross Chain and ease of building L1 but $ATOM (apart from the airdrop narrative) has never been integrated into the ecosystem. 🔹$POL has always been purely speculative. 🔹$DOT would have the use case of renting space for parachains but "no parachains use, no good price action". 🔹$ADA is a useless crypto (ridiculous TVL in DeFi and no use case).
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Davide
@0xdavide
Good tokenomics (some examples): 🟢$BTC (store of value, uncensorable payments) 🟢$ETH (ok, it's struggling but $ETH is used in large quantities as gas when the chain has high volumes; NFT mint) 🟢$BNB (used as gas, for launchpad, launchpool, hodler airdrop, fee discounts on Binance, etc) 🟢$ENA (stakers get airdrops and share revenue of the protocol but the token has a lot of unlocks) 🟢$SNX (price action hasn't been good but it's not a bad tokenomics: it obviously depends on the volumes of their exchange's perps but stakers get $SUSD for free and earn $SNX from liquidations)
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Davide
@0xdavide
Bad tokenomics ("farm and dump"): 🔴Incentive tokens (all tokens that are given away as incentives to attract liquidity, think of $OP, $ARB, etc) 🔴Farming tokens (similar to the ones above but here I'm referring to all tokens farmed by LP, like $CAKE, the old $CRV, etc) 🔴Gaming tokens (in most cases they are used as incentives to attract players, e.g. $SAND, $ATLAS, etc) 🔴Governance tokens (false narrative, these tokens are useless and are often dumped to pay devs and teams in development) Remember, in any context, when emissions exceed demand...the token is a bad investment!
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