NOTE: Be suspicious if there is massive selling of cryptos over this, this should have a neutral market reaction, if there’s large amount of selling it could be a sign that Tethers were being backed by cryptos and they are liquidating crypto-currency to come up with the USD. Tether redeeming all of the Tethers for real money in fact should be excellent news.
4) Utility token valuations should theoretically be capped at the future maximum utility value of the network divided by velocity. Low velocity comes from a need to hold: you hold money (reserve savings) and securities (income producing) and very few staking tokens.
5) Most utility tokens, then, will go to zero, regardless of team quality and execution. You simply don’t need to hold them but for momentum & greater fool investing. When the market lacks “higher order” investors for speculators to flip to, assets will unwind. Viciously.