iLegendd:
CHAPTER 2
TOKEN CREATION
Ninety nine percent of all crypto is built to make money by the team and investors no matter how they try to hide it and claim it's all about technology. It's a fat, giant, saggy lie concocted from the pit of Hell.
It's only BTC that is built to preserve money — the rest, including Ethereum, are built for profit.
Know this and know peace. Don't be deceived with oyibo lies. If they used religion to deceive your forefathers, don't allow them to use technological lies to do it the second time.
We're all here to make money with sh!t coins and preserve it with BTC — simple.
So, in making this money, a coin is launched, but before it goes public, there needs to be rich investors, project team managers, and other sets of individuals, organisations, etc. that get early access to the coin at the lowest rate. These are the people that make it have it's initial market cap.
TOKEN DISTRIBUTION
The people I listed above get early access to the coin. In some cases, before it comes to the public, insiders get more 70% of the meat. Since insiders have gotten more than 70%, what is the need making it public?
Any token insiders have more than 10% before going public is a red flag. A fair launch is the best for the public. Okay, some coins might be launched unfairly, but they try their best to make sure the early investors don't have access to those coins to avoid them dumping it when it's launched on decentralised exchanges. This is why token vesting was created.
Below is an image of some tokens and their distribution.
TOKEN UNLOCK (VESTING)
Vesting is how long it'll take for people to receive the tokens they bought at pre-sale prices. The longer it takes to release their coin to them part by part, the better for the public. Uniswap was 4 years. The minimum for a coin vesting schedule period should be 12 months.
There are different types of vesting, but the two most important are linear and cliff vesting.
1. Linear vesting is when the coin is unlocked over time, typically when a new block is added to the blockchain, which is often better for price action of the coin because any early sale of tokens by first investors, insiders or team is spread out over a longer period of time to avoid collapse.
2. Cliff vesting is when a fixed supply percentage is unlocked at a predetermined date in the future. This results in lots of short term sell pressure and panic which can trigger a crash in the price of the coin. In some cases, cliff vesting has no impact on price action.
Example is Solana. It has only a single vesting cliff. The entire initial supply was unlocked at once in January, 2021, but Solana's price stood its ground and didn't crash until the bear market came in 2022 to take the entire industry down.
In token unlock, if circulating supply's value doesn't match with unlock value, it could mean their unlocked token hasn't been pushed out yet or it hasn't reflected. A token can be unlocked, but not in circulation yet. Be patient.
TOKEN UNLOCK SITES
To check token unlock, type the name of the coin on Google and append the word token unlock.
Example: Pyth coin token unlock.
1. coinmarketcap.com/token-unlocks/
2. https://token.unlocks.app/
3. https://cryptorank.io/token-unlock
4. https://defillama.com/unlocks
Now, look at this picture below. It's a chart of some old coin's tokenomics when they launched. Today, some survived. Most of them started with a poor tokenomic, but after vesting, their Inverted Cs look okay and some are even perfect. But, what about those that bought and never sold when the tokenomics was terrible? They have lost.
I'll explain each of them with screenshot of their Inverted C and their current chart and I'll analyse each in a layman's way — just as I have done throughout this article.
my boss pls just explain this area to me sir and I'll know what to do from here even if it's just only one or two charts sir 🙏🙏🙏🙏🙏🙏 |
