Cryptocurrencies have the potential to fundamentally redefine worldwide finance. With the anonymous nature of many decentralized coin platforms, this is still the Wild West in many respects, and investors need to stand guard. With anonymity comes the opportunity for cybercriminals to run amok with few repercussions. This minimal risk and high reward imbalance has led to many exit scams.
The latest one involving the Claymore token, which LiteLiger documents beautifully, demonstrates how many novice investors and YouTube promoters can get into a crypto without first exercising the highest level of scrutiny. It's exciting to jump in when it's an ICO but skilled investors who have withstood the test of time will tell you that they invest in teams over technology for a more reliable return on their investment. If all that you see of a dev team behind a seven-figure valuation crypto is a first name or colorful cat picture, then there is cause for concern. When people are putting their reputations on the line, then there is more of a compelling focus and intensity to make that venture a success.
Much like how in the 1990s and early 2000s, many internet companies were able to thrive despite a secondary or tertiary consideration being made to profitability or the bottom line, seeing a bedrock of proven success in a field or technology competency is a must if you really are going to invest your hard-earned money into a cryptocurrency. Just about everything is being tokenized these days so you should think of all of your cryptocurrency investments as equities because that's essentially what they are, representing a stake in an enterprise whose intent is to “moon.”
The Claymore project was heavily reliant on a proof-of-stake consensus protocol that instead of issuing more cryptocurrencies as a reward would set a certain number of coins at minting, and that number would diminish upon deployment, based on a predetermined burn rate. Each time someone would send someone else any amount of this deflationary token then a burn would occur, and all holders of this token would see their relative ownership increase. For example, if you own 10% of cryptocurrency and 10% burns during the year, then you now own 11.1% of that project. This has a similar effect has a stake reward by incentivizing believers for their choice to HODL their positions. Holding onto one’s crypto is imperative to stop the community from dumping their crypto and devaluing the tokens of everyone.
While many projects are treating their deflationary token as an economic experiment with a bare-bones website and decentralized ownership structure e.g., no team contributions, some projects take a much more innovative approach. The two that I've been keeping a keen eye on are Bankroll and TronDash.
Smart contracts are resilient. Very rarely will you see a contract drained and many times when the development team says that a particular contract has been drained, more likely than not, just like in the case of Claymore, an actual exit scam by a crooked development team more than an ineffectual smart contract. The Ethereum and Tron blockchains do an admirable job of providing transparency for those who want to audit the contract that is holding the cryptocurrency funds with which users interact. So it should instill confidence when you see tens of millions of Tron being held in Bankroll’s smart contracts. They’ve done an exceptional job of delivering some straightforward smart contracts that have accumulated a very impressive stockpile of crypto. If I were to jump into a new dApp, I would first look into seeing what the level of commitment there is and this is often expressed best by people committing their crypto.
Another standout in the crypto crowd has to be the well-regarded Tron dApp in TronDash.com. They’ve been leading the innovation push in the dApp space with their most popular feature being the dApp dividend or “Div” management dashboard. This utility allows one to withdraw or reinvest one’s earnings across 95% of the most popular Tron dApps, all from one place. This, coupled with a robust referral system that many YouTubers utilize to earn recurring commissions on any dApp on the TronDash platform, has brought a pretty ubiquitous level of adoption by those serious about dApps.
While many crypto projects will continue to issue crypto to masternode holders, stakers, or through regular airdrops that water down the value of a coin, this new deflationary model is catching up and from an economic vantage point appears to be more sustainable through scarcity. The vision that TronDash has in staking the strength of the platform--the full revenue going into buybacks and burns a la Binance, behind this coin is particularly intriguing as a contrast to coins released with no backing other than FOMO and hoping that the next person buys it after you. Crypto investors are mostly savvier these days and circumspect of hype and grandiose promises from behind a VPN.
So the fact that I’ve been using TronDash.com for many months for my dApp dividend management into TronBet, Bankroll, and P3T coupled with their free airdrops for interactivity on the site represent why I presently have it as my homepage when firing up my Brave Browser. When you consider future deflationary tokens, I would advise you to look for either substantial backing (BNKR) or proven innovation (DASH) before putting in any amount of crypto into deflationary tokens, for the sake of the health of your crypto portfolio.