A number of tokens being used in an ecosystem.
The amount of token leaving an ecosystem
In traditional investing.
The investor holds his position and in fact, will do everything in his power to increase his holding for max ROI. Therefore the investor is bullish on the ecosystem he is in. (Not leaving, part of the team. Adding value)
Now let’s look at ICO’s
One buys a token to do what?
To speculate. Now there is nothing wrong with that.
but what is wrong, is the very nature of that token is being solid as a “utility” a token that “promises” an important role lol “a purpose”
Today literally everyone that buys a token buys it for one reason.
Price goes up, “They” liquidate.
of course, they would!
You would be a moron not to sell if it went up 200%
And guess what happens to the token?
Token velocity increase, but it increases on a negative.
I.E: leaky bucket
People are buying tokens literally to just cash out
So, if you take this into consideration…
Just like any stock, if everyone sells, what happens?
Well, that’s what happens to your token
honestly, most tokens to me look like a race to the bottom to zero
Don’t get me wrong, lots of people are making STUPID money, but dear God, lots of people are getting burnt
I guess that’s greed
Moral of the story.
Don’t be a Schmuck
Don’t be greedy
…And educate yourself.