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- đĽBeware of toxic tokenomics âŁď¸
đĽBeware of toxic tokenomics âŁď¸
PLUS: Want to learn how to make the best of the bull run? You have 10 months left (at best)
Toxic Tokenomics
Picture this:
You and your 10 friends finally score a reservation at that fancy Japanese spot in town.
As you sit at one end of the long table, watching your friends sip sake and look sharp in their suits, you think âThis couldnât get betterâŚâ
Then, at the top of the table â the sushi arrives (garnished with a vibrant green and orange salad)
âŚbut by the time it reaches you, all thatâs left is the garnish.
Thatâs what it can feel like being a retail investor in crypto: by the time the best opportunities reach you, the value is mostly gone.
Just look at this chart of all the altcoin listings on Binance in 2024. đ¤Ż
Itâs easy to blame the market conditions for this â but the Milk Man thinks thereâs a different factor at play here:
⨠Toxic Tokenomics â¨
The most common flavor of âToxic Tokenomicsâ right now are âlow float, high Fully Diluted Value (FDV)â projects.
Low float: Small amount of tokens in circulation (with a ton more to be unlocked over time).
High FDV: Unnecessarily high valuations, even though the projects are relatively new.
Hereâs how to test for Toxic Tokenomics:
Incredibly high valuation at TGE (aka: Token Generation Event, aka: Launch)
Lots of future token unlocks (which could mean lots of future sell pressure)
Tokens that end up falling by 50%-90%
Retail buys in thinking itâs at a 50%-90% discount
Retail gets rekt
But this doesnât mean that low-float, high FDV tokens are all badâŚ
Hereâs the not-so-toxic side of these tokens:
If there is only a limited supply of tokens in circulation, a small amount of demand can cause the token to absolutely rip!
(The math on that? Restricted supply + increased demand = number go up).
Now, hereâre some actionable steps you can take to test a tokenâs toxicityâŚ
1/ Ignore the red, follow the green
2/ Check the schedule
Looking to roll the dice and attempt to find a high FDV token that could experience a demand spike while its float is low?
Check its token unlock schedule first, so you donât buy amidst a fresh injection of supply.
Following these steps should help increase your proverbial âsushi-to-garnishâ ratio. đŞ
âŚor you could take the lazy option and let our army of nerds (researchers) at Milk Road PRO do all of this detective work for you â all they do is hunt for standout opportunities in crypto.
Day in, day out. But weâll explain this further below đď¸
You have 10 months left to make the best of this bull run (at best)
Rapid price spikes and crippling shake outs are par for the course in a bull run.
(A bull run weâre still in btw).
The tough part isâŚ
The opportunity we have right now only comes around once every four years.
Being aware of how the market moves in uptrends (mid-cycle crashes and all) marks the difference between netting gains or losses.
And on top of that, we have â what? 10,000+ cryptocurrencies to narrow down from before we can start evaluating and making informed decisions??
(There isnât enough time in the day).
And this kind of research isnât a one-person job.
It takes a team of big-brained savages to sacrifice their sanity, throw themselves in front of the fire hose of daily crypto news insights, and distill everything they learn into a digestible value-overdose of a newsletter.
But thatâs exactly what the animals at Milk Road PRO do every week.
So you can not only learn how to navigate these wild market swings â but capitalize on them (without sacrificing the majority of your waking hours).
Milk Road PRO makes you a better investor with:
Access to the Milk Road PRO Portfolio to see their exact investments with % allocations and live updates.
Weekly PRO reports that help you spot early trends, navigate macro and crypto markets and analyze specific investment opportunities.
Weekly âWhere Are We In The Cycle?â indicators to help you spot the bull market top before itâs too late.
And access to the
PRO Community, where the Milk Road PRO research team & 100s of fellow PROs talk crypto.
And the research pays off!
â The Milk Road PRO team called the Q4 2023 rally weeks before it started. Back when Bitcoin was at $30k!
â They also called $SOL at $25, before it skyrocketed to $200+
Ready to outsource the grunt work of crypto research?
Well, we have good news â as part of our merger, the team is giving any existing Renaissance readers 35% off Milk Road PRO!
But donât sleep on it, this code expires on Monday.
Click below to join Milk Road PRO now đ
Alright, thatâs a wrap!
Renaissance.