Tokenomics Red Flags You Can’t Afford to Ignore (Part I)

If you ignore the red flags, embrace the heartache to come.

Photo by RepentAnd SeekChristJesus on Unsplash

Tokenomics study is one of the main pillars of fundamental analysis. In simple words, tokenomics means the economy of the tokens (coins). Tokenomics study helps you to understand better the monetary policy behind the projects.

There are many online resources out there trying to define tokenomics. However, few of them are talking about the red flags you have to consider once you start to perform such an analysis. For that reason, I tried to detect 9 important red flags related to the Tokenomics studies.

1. Unlimited Supply
2. Unfair Vesting Schedule
3. Unfair Distribution
4. Inflationary Tokens
5. Possibility of Unwanted Changes in the Future
6. Non-Transparent Tokenomics
7. Centralized Mechanisms
8. Non-optimal Token Issuance
9. Lack of Use Cases

In the first part of this series, I am going to explain the first 4 items of this list.

Unlimited Supply