1) The 𝗺𝗼𝘀𝘁 𝘀𝗶𝗺𝗽𝗹𝗲 guide on 𝘁𝗼𝗸𝗲𝗻𝗼𝗺𝗶𝗰𝘀 you will ever see.
Find out how the tokenomics of a 𝟭𝟬𝟬𝘅 𝗽𝗿𝗼𝗷𝗲𝗰𝘁 looks like.
Here's how and what others 𝗱𝗼𝗻'𝘁 𝘁𝗲𝗹𝗹 you 🧵👇
Find out how the tokenomics of a 𝟭𝟬𝟬𝘅 𝗽𝗿𝗼𝗷𝗲𝗰𝘁 looks like.
Here's how and what others 𝗱𝗼𝗻'𝘁 𝘁𝗲𝗹𝗹 you 🧵👇
2) Tokenomics is all about looking at the token supply of a crypto project.
Do you own a limited edition pokemon card with only 10 of those in existence?
What happens if the company all of a sudden make 90 more of these?
The value plummets and crypto projects are no different.
Do you own a limited edition pokemon card with only 10 of those in existence?
What happens if the company all of a sudden make 90 more of these?
The value plummets and crypto projects are no different.
3) Every time I'm checking a project their tokenomics I go and visit a crypto database like @coingecko.
It instantly shows me the current supply ratio together with the other criteria that is most important to me:
• Market cap
• Fully dilution
• Circ. supply
• Total supply
It instantly shows me the current supply ratio together with the other criteria that is most important to me:
• Market cap
• Fully dilution
• Circ. supply
• Total supply
4) The 𝗺𝗮𝗿𝗸𝗲𝘁 𝗰𝗮𝗽 is the valuation of all the unlocked tokens in the market today.
The 𝗳𝘂𝗹𝗹𝘆 𝗱𝗶𝗹𝘂𝘁𝗲𝗱 𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 is the valuation of all the tokens in existence both locked and unlocked.
This means the MC eventually becomes the FDV valuation.
The 𝗳𝘂𝗹𝗹𝘆 𝗱𝗶𝗹𝘂𝘁𝗲𝗱 𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 is the valuation of all the tokens in existence both locked and unlocked.
This means the MC eventually becomes the FDV valuation.
5) The 𝗰𝗶𝗿𝗰𝘂𝗹𝗮𝘁𝗶𝗻𝗴 𝘀𝘂𝗽𝗽𝗹𝘆 is all the tokens currently available in the market for trading in today's market.
The 𝘁𝗼𝘁𝗮𝗹 𝘀𝘂𝗽𝗽𝗹𝘆 is the total amount of tokens both locked and unlocked.
The closer the circulating supply is to the total supply the better.
The 𝘁𝗼𝘁𝗮𝗹 𝘀𝘂𝗽𝗽𝗹𝘆 is the total amount of tokens both locked and unlocked.
The closer the circulating supply is to the total supply the better.
6) $TRIAS currently has 5 million tokens unlocked on the market.
There's a total supply of 10 million.
This means exactly 50% of the total supply is unlocked right now.
This also means that the fully diluted value is only x2 from todays prices.
There's a total supply of 10 million.
This means exactly 50% of the total supply is unlocked right now.
This also means that the fully diluted value is only x2 from todays prices.
7) In general a healthy blueprint would dictate that the circulating supply should be at least 30-40% of the total supply.
The tough part here however is that things aren't that general in crypto and that's where this guide comes into play.
The tough part here however is that things aren't that general in crypto and that's where this guide comes into play.
8) New projects often launch with a low circulating supply
Lots of locked tokens aren't always evil.
It's also to protect the token and not plummet the prices to a point where the project could never recover from.
New projects however also have low valuations.
Lots of locked tokens aren't always evil.
It's also to protect the token and not plummet the prices to a point where the project could never recover from.
New projects however also have low valuations.
9) A low valuation diminishes a low circulating supply amount and makes the investment more interesting.
When the market cap is really low any token unlock will be more easily absorbed since those unlocked tokens aren't worth much in the first place.
When the market cap is really low any token unlock will be more easily absorbed since those unlocked tokens aren't worth much in the first place.
10) You should be more careful however of the high valuation projects with a low circulating supply.
Those are the real dangers.
$SUI only has 5% of the total supply unlocked.
Only a 400 million valuation project right?
Think again because it will be 7 billion someday.
Those are the real dangers.
$SUI only has 5% of the total supply unlocked.
Only a 400 million valuation project right?
Think again because it will be 7 billion someday.
11) See the difference?
Project X:
A project with a 10% circ. supply and a 1 million valuation only becomes 10 million dollars someday.
Project Y:
A project with a 30% circ. supply and a 300 million valuation will become a 1 billion dollars someday.
On paper project Y wins.
Project X:
A project with a 10% circ. supply and a 1 million valuation only becomes 10 million dollars someday.
Project Y:
A project with a 30% circ. supply and a 300 million valuation will become a 1 billion dollars someday.
On paper project Y wins.
12) It has the higher supply to total supply ratio.
And yet project X only has a 9 million dollar in valuation worth of sell pressure in the future.
Project Y however has a 700 million dollar in valuation worth of sell pressure in the future.
And yet project X only has a 9 million dollar in valuation worth of sell pressure in the future.
Project Y however has a 700 million dollar in valuation worth of sell pressure in the future.
13) This doesn't take into account the projects potential or projects size.
Project X might be rubbish and project Y might revolutionize the world.
But purely looking at the tokenomics of 2 equally strong projects with equal potential X would win.
Even though paper says Y.
Project X might be rubbish and project Y might revolutionize the world.
But purely looking at the tokenomics of 2 equally strong projects with equal potential X would win.
Even though paper says Y.
14) I told you before things aren't always that general in crypto right.
That's why the average blueprint will never work.
We also have the token unlock schedule.
People might scare you with a low circulating supply but sometimes these tokens don't hit the market for years.
That's why the average blueprint will never work.
We also have the token unlock schedule.
People might scare you with a low circulating supply but sometimes these tokens don't hit the market for years.
15) A project with 5% of the circulating supply might have 95% of the token locked for 2 years.
Or the token unlock might happen really slow.
A good example of this is $ARB, the token released by #Arbitrum.
Or the token unlock might happen really slow.
A good example of this is $ARB, the token released by #Arbitrum.
16) On paper this doesn't look all to great right?
Only 13% of the total supply is in circulation and the current valuation is already 1,5 billion dollars.
This means it will soon be valued at 11 billion dollars at today's prices.
And yet, prices have been stable really well.
Only 13% of the total supply is in circulation and the current valuation is already 1,5 billion dollars.
This means it will soon be valued at 11 billion dollars at today's prices.
And yet, prices have been stable really well.
17) How come?
Well that's because the next token unlock was only planned 1 full year after the initial release.
That means for one full year there's nothing to worry about.
Some projects even have longer lockups.
An interesting tool you can use for this is @Token_Unlocks
Well that's because the next token unlock was only planned 1 full year after the initial release.
That means for one full year there's nothing to worry about.
Some projects even have longer lockups.
An interesting tool you can use for this is @Token_Unlocks
18) You could fear the low circulating supply but often you can just invest with a shorter time frame horizon and possibly sell it after 1-2 years and re-evaluate prices at that moment.
Some project also have a very slow unlock over the span of 5 years.
Some project also have a very slow unlock over the span of 5 years.
19) Always check the whitepaper or official documents for the most accurate info.
The telegram chat or discord channels from the official projects will also help you if you ask others or the admins.
As you can see it's not always that general like it looks on paper.
The telegram chat or discord channels from the official projects will also help you if you ask others or the admins.
As you can see it's not always that general like it looks on paper.
20) The entire picture is more important than each piece of the puzzle analysed individually.
The next time anyone tells you about a healthy or unhealthy supply ratio make sure you know better.
Most people don't but now you will.
Nova out ❤️
The next time anyone tells you about a healthy or unhealthy supply ratio make sure you know better.
Most people don't but now you will.
Nova out ❤️
21) If you like these threads consider giving me a follow @CryptoGirlNova.
I write guides to make you a better trader including 24/7 live updates on the market.
Like/Retweeting the first tweet below would mean a lot to me 👇💟
I write guides to make you a better trader including 24/7 live updates on the market.
Like/Retweeting the first tweet below would mean a lot to me 👇💟
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