You may think I'm crazy, but hear me out. I've seen the inner workings of the crypto world firsthand. I worked as a project manager on a decentralized application just two years ago, and I've got a story to tell.
So, let me explain how it works. When you're building a crypto project, you need developers. But what if you don't have enough cash to pay them? Simple, you create a token and include them in the tokenomics. After the token launch, developers get a portion of these tokens for their work. You keep another portion for your other expenses—that's your treasury.
Now, imagine your application or blockchain isn't profitable. You'll have to progressively sell all your tokens to keep the project afloat. And when those run out, you might even mint new ones to sell them again. It's a vicious cycle.
Don't believe me? Take a look at www.tokenterminal.com. You'll see that most projects are losing money, even famous ones like Solana, Fantom, or Polkadot. To pay the devs and keep the lights on, they'll have to dip into their treasury—which means selling more and more coins or tokens.
This is the harsh reality of the crypto world. Most altcoins will eventually go to zero because their projects simply can't sustain themselves. It's not about FUD; it's about understanding the economics behind these tokens.
So, before you ape into the next hot altcoin, take a step back and think about the long-term sustainability of the project. Not all that glitters is gold, and in the crypto world, not all tokens are created equal.
Stay informed, stay cautious, and always do your own research. Your future self will thank you.