TOKENOMICS + TOKEN UNLOCK

Chapter 1

1. What Is Tokenomics
2. Monetary Policies
3. The Inverted C (MTC-FM)
4. MTC-FM Values and Calculation
5. Two Types of Coins
6. Perfect and Imperfect Tokenomics
7. The 7 Classifications (MTC-FM)

Chapter 2

Token Creation
Token Distribution
Token Unlock (Vesting)


CHAPTER 1

                     TOKENOMICS

At the end of this short post, it will take you 69 seconds to know if a coin is good or not. GUARANTEED!

At last, you'll say, "I have FINALLY got this confusing subject handled once and for all."

What is a good leadership or government?

A good leadership is one that favours the people, the public, 90% or more of the time, not the one the leaders or the insiders get favoured 50-90% of the time.

Now, what is a good coin/token?

With the definition of a good government, you already know the answer. It's a coin its tokenomics favour the public at least, 90% of the time. Nothing less.

The Nigerian government is managing the country/economy with terrible economic decisions, right?

Is that good? No. You too will make the same mistakes if you "s-elect" the wrong coin and don't know the open secrets in this post.

In crypto, the token you choose is essential, hence, you have to research it. After reading this post, you'll call me  and say, "Wow! Why didn't I know this the first day I started crypto. It's even too easy. I used to think it's a difficult thing because of the word 'research'."

Note: I'll use the word coin and token interchangeably even though a coin is more superior than a token.

A coin is a mother (aka ecosystem or  operating system like Ethereum, Ton, Base, etc.) while a token is the app (children) like Pepe, Redo, Brett, etc. built to operate inside the coin's eco or operating system. Anyway, forget about that for now (it's unnecessary) — the juicy part will soon come.

Tokenomics help you invest wisely unlike most people in crypto. It's the economics of tokens. If you don't know it, you ruin your money by jumping from one coin to another like a young and naive actress sliding from one bed to another just to land a role. Sometimes, it works out, but most times, it doesn't.

I'm going to put a stop to that behaviour after reading this. It's just like a politician who's after money, but can't rule or implement laws that'll help the economy grow. I want your money to grow, so pay attention.

In crypto, the economy is controlled by codes, numbers, computers, news and schedules. You need to know the numbers and the schedules — forget about the codes, news and the computer.

Typing...

MONETARY POLICY

There are two kinds of monetary polices used in cryptocurrency. One of them is better than the other, but both have their functions.

1. Contractionary police, but let's call it deflationary.
2. Expansionary polices, but let's call it inflationary.

In life, it's good to expand and have more money, but when it comes to global financial money control, if you expand too much too fast, the money loses value.

This is why fraudsters who didn't labour hard for their money always lavish it on women and drugs. Money na water.

A deflationary asset has the maximum supply known ahead of time while the the brother, inflationary asset doesn't reveal it — it's infinite (which is bad for financial control). When the maximum supply is infinite, the coin can infinitely go the down the drain in most cases.

Imagine having a cat that grows fat too fast. In a week, it's bigger than the size of a cow. In two months, it's bigger than the biggest Indian elephant.

If not that you're on drugs, by now you would've packed and disappeared to who knows where. Didn't the growth shock you? Is it a good thing? No, it's abnormal.

What if the opposite happens? It keeps losing weight until it's now the size of a lizard or gecko. Won't you run? You surely will.

This is why both deflationary and inflationary monetary policies are important, but deflationary is the better one for cryptocurrency, which BTC uses — it controls the ups and downs way better.

To make inflationary manageably acceptable, "burning" was invented to make it semi-deflationary and eradicate or minimize bloating even though we all know it's inflationary by birth.  The coin $ICP is battling this.

A lot of proof-of-stake coins/tokens don't have or show a maximum supply, hence they're inflationary. They do this so they can be able to pay rewards to stakers and co.

— Deflationary makes things scare = valuable. Max supply is revealed.

— Inflationary makes things too available = not that valuable.

To make it valuable, you'll have to "burn" remove some permanently out of the market.

When this happens, "some inflationary," coins that have been hiding their max supply will finally reveal it to build confidence in the community since too much secrecy will make some people never to invest in your company, coin or idea.

In summary, we have monetary policies which are

1. Deflationary monetary system (like BTC)
2. Inflationary money system (like Naira, Dollar, etc.)

When the coin is inflationary, it means it's infinite ∞ — it will have no number in the maximum supply and the founders can increase it unannounced and the coin will lose value with a bloated market cap, yet the price of the coin is still going down like ICP coin.

But when it's deflationary like BTC, the maximum supply will have a fixed number that everyone can see.

Therefore, Ethereum is originally inflationary that's why the maximum supply has no number, but permanent token removal made it deflationary.

Which is better between deflationary and inflationary? Deflationary is better, but if inflationary wants to level up, it will need to burn some of its coins on a scheduled basis.

Reminder: When something is in excess, it loses value, but when you hide or take it away, aka "burning" it regains its appeal and value.

This is why Ethereum, even though it's inflationary, still has value, because of the burning mechanism being applied. Inflation isn't always a bad thing when properly managed neither is deflation a good thing when badly managed.

Any inflationary coin that doesn't burn = reduce/control, collapses. This is why the Venezuela and Zimbabwean money collapsed because they printed excess of their inflationary currency. Nigeria almost joined them.

The same thing applies in cryptocurrency. So, when you check a crypto coin on CoinMarketCap and you notice the value of maximum supply is missing ∞, it means it's inflationary — that is a red flag, but it can be changed to a green flag if the project owners burn some of the coins periodically.

Theory is boring, but I'm happy you endured. Now, let's get started.

Typing...

MTC-FM (THE INVERTED C)

There are 5 important things in understanding the level of a coin which I abbreviated as MTC—FM.

In fact, let me put it this way: There are 5 easy ways of understanding a coin's tokenomics in less than 69 seconds without visiting the project's website and reading a long and boring white paper (company's roadmap) which in most cases, they don't even keep their words because most of them have 98% chance of collapsing after a couple of years of minting money from the masses.

Those 5 things are:

1. M = Maximum supply (aka Mr. Max, the grandfather).
2. T = Total supply (aka Mr. Total, the son).
3. C = Circulating supply (aka Mr. Cir., the grandson).
4. F = Fully diluted market cap, also called fully diluted value FDV and finally.
5. M = Market cap (MCap).

All newbies judge a coin's economic value by the price, but no, professionals judge it by the market cap.italization and other parameters, which you'll find out as you read.

It doesn't matter if a coin has a big market cap in billions or a small market cap in millions or hundreds.

What matters is the way to coin is being DISTRIBUTED, the problem it solves (utility), and the number of trustworthy people or large community behind it.

Remember the above for the rest of your life.

Though, a small market cap coin has an advantage of making you more money if the DISTRIBUTION is fair, the problem it solves is unique or essential, and there are honest bunch of humans behind it with a diehard fanbase...

OTHERWISE, a big market cap coin that is well-distributed is better even though the profit won't be as enormous as the small MCap one. Why is it better? It can't be manipulated easily like a small cap coins.

As you read through, everything will make more sense, so don't fret it. Na who give up na him eff up. I want to subliminally sneak the knowledge into your brain without you realizing it. The lightbulb will flash at the end.

Let's go back to the MTC-FM we discussed earlier and explain how they work. Can you recall what it stands for? The abbreviation would've been more memorable if it was MTN-FM instead of MTC—FM.

MTC-FM VALUES AND CALCULATION

The Supply family is comprised of maximum supply, total supply, and circulating supply...

How did they get their values and are those values important? YES, EXTREMELY!

And why does Ethereum's max supply have no value, but BTC has? If you asked me, na... finish the line.

It's because BTC's max supply is finite (e dey finish = visible) while ETH is infinite (e no dey finish = invisible).

Okay, it's simple.

The Supply family gets their values from how the coin is DISTRIBUTED (referring mainly to circulating and total supply) or the kind of monetary system (refering to max supply) that is being used.

No worry, everything go clear for your eyes — you're too impatient for my liking o!

As you read this part, have a mental picture of that Inverted C. Picture what number 1 to number 5 is. In fact, permanently engrain and engrave it in your brain or subconscious mind forever.

MCap vs FDV: (FDMCap). Knowing about it helps in making a better investment decision in the coin you choose.

MCap: How big, popular or how much value people place on it. The bigger, the more valuable, but the less profit for new buyers of that coin.

How do you determine the value of a coin's market cap? It's by multiplying the Current Price with the Circulating Supply.

MCap = CP x CS.

If the current price of BTC is $62,466 and the circulating supply is 19,720,000, then the MCap is 1,231,829,520,000. That is 1.2T (One point two trillion).

BTC is the only crypto coin with a market cap in trillion. The rest are in billions, millions and thousands.

Now, the question is, where did you get the circulating supply number from?

It's from the blockchain. It's the number of currency (money) that is currently in circulation for that particular coin/token.

So, for BTC, 19+ million BTC is currently in circulation (refer to Inverted C image above). Who's holding it? Every sensible person around the world.

What about maximum supply?

Max supply of BTC is pegged and programmed in the code to be 21 million and out of this 21 million BTC that'll only exist, 19 million is currently circulating around the world, which we discussed above.

I know, your next question, so don't even bother. I'll answer you straight. Total supply is, let me use uncle Elon Musk in an analogy.

You know, if he had given birth at age 18-22, he would be called a grandfather. Now you know, let's pretend his new name is Elon Max, refering to max supply.

Typing...

SUPPLY FAMILY ANALOGY

Elon Max said the maximum number of Cybertruck vehicles that'll come to Nigeria is 21 million whether we like it or not. Tinubu begged him with a wrap of hard drugs to increase it, but he said NEVER! He even got angry and said we don't even have constant light to charge them.

Unfortunately, his company only sent a total of 19 million out of the 21 to our seaport. The remaining 2 million are still in production.

Immediately, rich Nigerians rushed to the seaport and bought the 19 million he sent. Some people bought more than 100. Portable bought 5 and gave  Saidaboj 1 with ₦20 million cash for her service.

In the end, the total supply so far, 19 million, is sold out and that means 19 million Cybertrucks is in circulation in Nigeria.

So, it's safe to say:

Nigeria was promised 21 million maximum supply of Cybertruck, but a total supply of 19 million was manufactured and sent over.

Sadly, based on oppression and showoff, rich Nigerian men, including Timaya and sugar mommies have bought the entire (total) 19 million and they're now in circulation around the country. I wonder where they'll charge them.

With the analogy above, you'll know that you now know what...

-max supply,
-total supply and
-circulating supply means.

Okay, let me give you another simplified angle of The Supply's family.

Max supply = Number of tokens that'll EVER exist, but some are not existing yet (even though it's been listed as 21 million) because they've not been mined or minted yet. (Grand father). 
"When the remainder, 2 million, is mined, what do you do, Mr. Max?" I'll dispose the burnt ones as usual so that my family will remain deflationary and send the rest to my son, Mr. Total Supply so he can send some or all to my grandson, his son, Mr. Circulating Supply so that the family will grow in good health, trust and honesty.

Total supply = Number of tokens that ALREADY exist (gotten from my father, Mr. Max Supply), but some are NOT in circulation, because my son, Mr. Circulating Supply, is not ready yet. Even if he's ready, I won't give him everything because some early investors (shareholder), miners, stakers in smart contracts will cash them out immediately and the family's legacy will crash, so let me hold it till the scheduled vesting day (token unlock day) before I send it to him to circulate to the beneficiaries, then the public so they can cash them out, hold or trade them. This was handled as if I'm refering to ETH or any proof-of-stake coin.

Tip: This is the reason some coin's total supply is always bigger than their circulating supply because the dad, total supply, refused to release all at once to his son, circulating supply. Though, it's for a good reason.

Circulating Supply = Number of tokens that's ALREADY in circulation, gotten from my dad, Mr. Total, which he got from my granddad, Mr. Max. Though, my dad is stingy. Sometimes, he doesn't give me everything my grandpa, Mr. Max sent him to send to me to circulate to the world.

Tip: Mr. Circulating Supply doesn't know his father, Mr. Total is not totally stingy. He has an agreement/contract with some bad, but rich people (who love to invest early and control the market) and they have a scheduled date to release the rest of the token, so he can't release them until that day comes.

You, being a regular trader or HODLer, you need to research and confirm that date Mr. Total will release it to his son, Mr. Circulating so that you'll buy the coin when it dips or sell yours one time (if you're holding it) now that it's still up, then start shorting it before it dips.

We'll talk about this "token unlock" thing in chapter 2.

Typing...

Final analogy about the Supply's family.

It's safe to say, Elon Max, aka Mr. Max's 21 million Cybertrucks promise hasn't been totally fulfilled to Total seaport (Mr. Total). Only 19.72 Cybertrucks were sent. The seaport, because of fear of congestion, sold / distributed / circulated the entire 19.72m cars he got to the public in minutes.

As you know, this analogy is about BTC, but it applies to every coin, even the ones that hide their grandpa, Mr. Max Supply.

In BTC's case, the entire total supply was sent to circulating supply and everything was circulated immediately. Some coins don't do it that fast and you already know why — Mr. Total has a contract agreement and until that day comes, everything can't be sent out.

Tip: Coins that the total supply has sent EVERYTHING or at least, 95% of things he received from max supply straight to circulating supply has a better and honest tokenomics than one that the total supply is hoarding it.

$TON, $WLD, etc. is a culprit of this. $ICP used to be, but it has paid up to 95% of its debt to the VCs (venture capitals — the initial investors). Though, it's still hiding it's max supply like Ethereum.

Calm down, Sir/Ma. I know you want to ask about FDV, also called fully diluted market cap.

FDV is when you multiply the current price of the coin by Mr. Max Supply (the grandfather of the house, AKA Maximum Cybertruck).

Don't forget that MCap is similar, just that we used Current Price multiplied by Circulating Cybertruck (Mr. Circ.) while FDV is Current Price x Maximum Cybertruck.

So, FDV = $62,466 x 21,000,000 = 1,311,786,000,000 (which is 1.3T — one point three trillion).

You get my point? Yes, you do. I have intentionally repeatedly myself way too many times for you not to understand.

If you don't, kindly reread, but this time around, turn off your social media notifications and read it slowly.

"Now I know the above, how do I use it to vet and judge a coin?" you asked. To answer you, you need to be a little patient. We'll get there and there will be examples.

But before we continue, don't rate a coin as a good coin by the price, but the size of the MCap Vs FDV, the closeness of the value of Max Vs Total and also that of Total Vs Circulating supply and the things you're about to learn next.

MCap gives you an idea of the level of adoption or exaggeration of its worth by the owner. 
FDV gives you an idea of the the level of honesty or dishonesty. If FDV price is the same with MCap = extremely honest. If it's close, it's good, but if the margin is too big, then it's too risky. 
Total/Cir. gives you an idea of the level of debt owed between father and son. If the father is owning his son something huge, the tokenomics is bad, if he, Total, owns none or little to this son, Mr. Cir, then it's a good coin.
Max gives you an idea of the maximum token that'll ever exist and it'll be sent to Mr. Total, excluding the burnt ones. 

Oh, let me reiterate something for a better understanding of MCap Vs FDV because it's important.

The FDV value, in most new coins, with terrible tokenomics, is always larger than the MCap value because of vesting (circulation held back for the big boys) and later, dumping caused by circulation increasing (for MCap to increase), but price going down (for FDV to reduce and match up with MCap to give the illusion that the tokenomics is finally balanced — which is true, but those retailers that bought at the top are still bleeding to death. I guess it's their fault because they bought when the tokenomics was bad but the hype was good and irresistible and everyone was FOMO'ing. Also, they don't even know what a bad or a good tokenomics is).

Yes, the tokenomics is good now, but those early retail buyers at the top are bleeding. Is that good? No. Why did it happen? Token inflation and manipulation by whales, exchanges, owners of the coin, and other bad elements in the game.

So, the BEST coins, be it new or old, are when the MCap and FDV have the same value or almost the same — no much difference and the value isn't in billions yet. Total vs Cir. should also have the same or a similar value. 

The moment the value/number of FDV is twice or way bigger than MCap, it's a red flag. RUUUUUN or only day-trade it and leave on time after any small pump of 20-100%.

So, when Total is way bigger than Cir. it means a lot of coins/tokens are yet to be issued (go into circulation = saturation) and this mostly has a negative effect on the coin's price (it reduces 98% of the time) and the market cap gets bloated or worse, stays stagnant and as you already know, a big market cap reveals large adoption — which helps coins survive rugpull better than the ones with low market cap, but in this case, it's a "bloated" fake market cap, which I love to call "big for nothing." AKA Naira!

This is exactly the reason the Nigerian government is scared of increasing minimum wage. It's not that the money isn't there, it's there, but when too much money is in circulation and in everyone's hands, like in Venezuela, it becomes valueless until it will get to a point no one will want it. Everyone now has too much money. Now there's a problem. Even if someone wants it at last, you'll spend a wheelbarrow of that money for a small/tiny item.

A lady working in a man's poultry is currently being paid 30k per month.

Yes, I know it's bad, but the day minimum wage hits 400k and he's forced to pay her 400k or even 150k, he's going to increase or bloat the price of a crate of egg from 4-6k to 18k and that man that produces fowl feed using raw egg as part of his mixture will bloat the price of his chicken feed because he bought a crate of egg.

And the economy goes back to square zero with artificially inflated items waiting to be purchased by a bloated and weak currency.

This is exactly what happens in crypto, but thank God for USDT or US Dollar that keeps staying stronger than most currencies.

This that's why a deflationary coin is better than an inflationary one. Satoshi Nakamoto knows this about fiat, so he invented Bitcoin and made it deflationary and open source, unlike global currencies that are inflationary and closed source.

You get the point? Don't worry, everything will make sense as you read.

Don't forget that tokenomics is the study of how tokens work within a crypto ecosystem. It covers everything from token allocation, utility, vesting, inflation, governance, schedule, etc.

It lets you know if you truly own the coin or not. It's like a DNA test to confirm if the child/coin is yours (I'm not taking about not your key, not your crypto. This one is deeper).

As the child grows, you'll begin to notice some behaviours that aren't similar to yours. So, with a good knowledge of tokenomics, you know what to expect and what not to expect by just looking at the Inverted C of your coin.

Nothing will seem strange to you about your coin if you truly understand its tokenomics, else, you're just floating on hot water after being deceived (knowingly or unknowingly) by men who were once trustworthy to buy the coin that it won't hurt you.

A good tokenomics makes a coin progress and it's always 90% or more in the hands of the public not an organisation.

But a bad one makes it die after some manipulative progress and pumps that may span months or years but ends up experiencing slow and internal bleeding at last, then struggles to pump for the rest of its life.

Slow and steady until your lose more than half of your money right before your eyes is the game of 98% of coins.

When you understand tokenomics, you make a better choice in what to invest in. One thing is, some coins may start with a bad tokenomics, but later switch to a good one, but it's still risky to get in at that time except you entered when it has a good pull back and consolidated at a strong support.

Or, only join when it has already upgraded to a good tokenomics as long as the hype is still there.

The old coins are the ones with good tokenomics because all the vesting, token unlock periods are mostly over and insiders have mostly dumped. If such a coin is still pumping and widely talked about, then it's good, but in most cases, they don't get the hype anymore except there is a strong community behind it.

The new coins with a bad tokenomics have a higher chance of pumping, but itit's all a trap. When BTC hits the top and starts going down and these coins start unlocking tokens to their insiders, VCs, etc. based on scheduled vesting periods, the coins will bleed and may not recover in another bullrun.

If an old coin that started with a bad tokenomics, but now has a good tokenomics refuses to pump because of no interest or big community for the coin in a bull market, don't buy it.

Instead, buy the new coins with a not-so-perfect tokenomics, but mark the day there will be unlock so that you'll leave ahead of time, then smartly short it to death — if you're into futures trading. But, if the old tokens with good tokenomics have some life, buy it instead at a good support. Use multiple exchanges and don't put you eggs in only 2-3 baskets — you need MORE!

Typing...

HERE IS INFLATIONARY COIN WITH BAD TOKENOMICS IN ACTION

Let's assume a coin called $Legend is at:

Current price of $5
Max sup of 1B
Total sup of 1B
Circ. sup of 250M

This means Mr. Total Sup took 1B from Max Sup, his father, but only gave 250M to his son, Cir. Sup and kept 750M in his vault for vesting purposes and they'll be released in scheduled time to insiders and early investors.

With the above,
MCap will be current price x cir. supply 5 x 250,000,000 = 1.25B
FDV will be current price x max supply
5 x 1,000,000,000 = 5B

From this tokenomics, you can easily see the red flag started when circulating supply only got 250M instead of 1B from his dad, Total supply. At least, he should've given him 950M make we know say na 50M remain.

Also, from the tokenomics, FDV is way bigger than MCap and that is bad. They're supposed to be the same or at least, almost the same. The difference is too big.

Imagine Benzema and Ronaldo went for a robbery and stole 6.25B, but Ronaldo said he'll take 5B because he has 5 Ballon d'Or. Is that a good and exemplary leader? No. This is when equality or "almost" is needed the most. Feminists, are you with me? Is what Ronaldo did good?

When the remaining 750M is released to circulate, there should be lots of buyers on ground to buy them, else the $5 current price will slump to $3 or lower.

When supply exceeds demand, price crashes and vice versa. This will make the MCap to bloat or stay stagnant with a tiny difference even though the price has gone WAY down.

The current MCap is now 3 x 1,000,000,000 = 3B.

You see, the MCap jumped from 1.25B to a bloated 3B, yet price went down. Price is supposed to go up when MCap goes up, but in this case, it went down and that is a terrible tokenomics.

People that bought the coin when it was at $5 with 1.25B MCap are currently at more than 30% loss. Is that good? No.

Why? Inflation. So, avoid inflationary coins or trade them with care and only if the project team will burn some tokens regularly to make it somewhat deflationary and there should be a diehard community, like meme coin fanbase, to buy when the price goes down to avoid 98% or 100% collapse.

Now that the market cap has been inflated and the price is down, it will take LOTS of money and volume to pump it back up to $5. Oya, those people screaming "money na water" it's time to show working.

So, be watchful of a coin that has a big number discrepancy between total supply and circulating supply. And also that of MCap and FDV.

Don't forget, burnt tokens don't move from grandpa Elon Max supply to Mr. Total, they get killed and buried at Max's compound forever and this helps create scarcity of the coin to make it more desirable.

Scarcity of an item creates eagerness to have the item by the public. This is why BTC is treated as digital gold. It appreciate in value over time because of a burn mechanism called halving. 

Sometimes, harsh conditions or policies make it lose value temporarily, but it will surely bounce back in few months or years. This is why they call him the GOAT, he always turn up when everyone (coin) is crying (bleeding).

So, buy coins that have at least 90% BTC attributes. Meme coins mostly have the best tokenomics and community — just that they don't have a good utility value. If not, I would've focused only on memecoins.

In the end, 98% of these coins that claim to have great utility, but terrible tokenomics, will crash and burn while Doge coin lives on.

Just know that 98-99% of all the coins are scams no matter how they sugarcoat it. With this info, you're now equipped to dig out the 1-2% that have a high chances of surviving or at least, generating you money before they die.

Don't forget, take profit and buy better food — it's all about the money and no one lives forever, only BTC and gold will. And yes, put your emotion in check and development a trading strategy and a risk management strategy too.

Typing...

CATEGORISING COINS BY %

When you check CoinMarketCap website, not the app, you'll see the percentage of circulating supply of the coin you're interested in. Below is how I rank it.

1. 100% perfect tokenomics coin
2. 90-99% good tokenomics coin
3. 60-89% manageable tokenomic coin
4. 50-59% risky, but fun tokenomic coin
5. 1-49% bloodbath tokenomics coin
6. ∞ (infinity sign) hidden, but honest (Only ETH should be forgiven, the rest, be watchful just like number 7 below)
7. % -- missing: hidden & dishonest (Worst, but pretending to be good. The true colour will soon show. It's just a matter of time. Avoid or trade with caution).

       BEST AND PERFECT COIN

1. A coin with its MTC-FM all 100% available with the same value or almost the same. 

2. If maximum supply is missing, then the total and circulating supply must be the same number or almost the same and MCap and FDV must also be the same number or almost the same.

Extra tip: There should be a huge vibrant community and big or growing trading volume, but not a giant MCap yet. If the market cap is already big in billions, you'll still make profit, but not as much as when it's in less than 400 million.

Anything apart from the two options above, is a bad/terrible tokenomics.

Though, number 1, the one with everything out is still better than option 2, the one hiding it's maximum supply. But at least, those two above are the only options — the rest are scams unless they grow or adjust to attain the criteria above.

Inversely, the ones that didn't meet the two criteria are good for shorting whenever they experience a manipulative parabolic pump to liquidate early shorters. It's a game of cat and dog. Novice retailers ALWAYS pay the price.

You only short them when they have done lots of these manipulative pumps at the top of an altseason and the bear season is about to kick-start in few days or weeks. These are the ones that bleed the most and shorters make millions for early naive DCA'ers. 

WHAT DO I LOOK OUT FOR BEFORE I BUY A COIN?

There are two types of coins

1. Already listed on CEX (centralized exchange)
2. Not listed on CEX or DEX for trading yet (Decentralized exchange)

When it's listed on CEX, like Binance, Bybit, etc., your focus will be more on MTC-FM numbers, then how the coin was distributed during launch. In fact, you don't need to know how it was distributed by going to their site except you want to be a VC and buy before it goes public, else MTC-FM, when it's listed on CoinMarketCap will reveal the lopsidedness in seconds.

When it's not listed for trading on DEX or CEX yet, your focus will be on token distribution.

This is to make sure insiders and early buyers, who bought at an extremely lower rate are not holding a large percentage of the coin before it goes public because by then, they're already at x5 or x20+ in profit.

Let's handle the first one. When a coin is listed for trading, you need to check if there is vesting involved.

That is, if there is token unlock coming or if all the tokens are already unlocked from the get-go.

So, when there is unlock days or weeks ahead, don't buy yet, finish the research. I'll tell you two or more sites to check this. NEVER buy a coin unless you check this first.

If you read to this stage, you're DAMN serious. I respect you for that. You'll make it in this crypto industry. For this, I'll give you the sites to check or how to do it.

Now, detailed summary of what to look out for when doing the MTC—FM research, AKA, The Inverted C, which will help you in detecting whether the token is worth buying or not.

1. Maximum supply (MS)
2. Total supply (TS)
3. Circulating supply (CS)
4. Fully diluted market cap, also called fully diluted value (FDV)
5. Market cap (MCap)

MAXIMUM/TOTAL SUPPLY

If the max supply is missing or not showing, it means it's infinity and that makes it inflationary, red flag 1. BUT if the token is regularly burnt, then the red flag changes to green flag.

If max supply is not the same value or close to the same value as total supply, red flag 2.

TOTAL/CIRCULATING SUPPLY

If total supply is not the same value or close to the same value as circulating supply, red flag 3.

FDV/MCAP

If fully diluted (value) market cap, aka, FDV, is not the same value or close or worse, way above market cap value, red flag 4.

If the above are red flags for a coin and the coin still has 1 billion or more market cap valuation, double red flag, except the coin has a great utility and lots of adoption, staking, etc. then it can be worth re-evaluating and maybe, buying to earn some yields and free perks for holding the coin.

This is how they always pair or get compared together.

Pair 1: Max Supply to Total Supply
Pair 2: Circ. Supply to Total Supply
Pair 3: MCap to FDV
Yes, total supply got paired twice.

PERFECT COIN TOKENOMICS (BEST)

A perfect coin tokenomics is when the max, total, and circulating supply are the same and when the market cap and fully diluted value are also the same. Examples are coins that belong to PEPE group like BRETT, PEPE, ORDI, DOG, JST, etc. Everything about these coins are in circulation for the public.

CLOSE TO PERFECT COIN TOKENOMICS (ABOVE AVERAGE)

This is when 2 pairs above share the same values, but the rest don't. Though, without much discrepancies. The Max supply can be the same value as total supply or circulating supply can be the same value as total supply or MCap is the same value or almost the same value as FDV. At least, 2 pairs must have the same or similar value while the remainder has only little differences in number. Example are coins that belong to BTC or ETH group like BTC, ETH, BNB, ADA, KASPA, NEAR, RNDR, ATOM, BOME, etc.

FAR FROM PERFECT COIN TOKENOMICS (TERRIBLE)

When there is a/an x3 or more discrepancies between the values of circulating supply and total supply or max supply and total supply or a big difference between the value of MCap and FDV or one of the above coupled with a strange max supply or a missing max supply. This is a pure bloody red flag, but sometimes it will favour you massively if you understand how they work because they have a great short sell potential. Examples are coins that belong to WLD and CAKE group like ENA, RSR, BNX, TON, WLD, CAKE, etc.

Oh, I haven't taught you about the group. Don't worry, it's below. After trading it, you'll come back to reread this pairing.

HOLDERS RED FLAG ANALYTICS

From that Inverted C image, from CoinMarketCap app, below the MTC-FM, you'll see holders' percentage and a few other details. Not all coins have it though, but most do.

1. When 50% or more of the holders are whales, it's a red flag. (It shouldn't be up to 50%).
2. When the whales' addresses are less than a million, it's a red flag. (It should be at least 1 million and above).
3. When the 1 year+ holders is not up 50%, it's a red flag. (It should be at least 50% except it's a new coin that is still gaining its ground).

I have put every coins into 7 categories based on their current MTC-FM values and I used a coin from the group as their group name.

Typing...

THE 7 GROUPS OF TOKENOMICS SIMILARITY AGENDA

Below is the group name, ranked in order of best to worst. You'll have to register on CoinMarketCap app, login, and create 7 different groups like this.

Any coin you're interested in, do a quick 60 seconds analysis and you'll know the group to place it.

This is to keep you organized. If you read this far, I'll give you access to the ones I created where I vetted the top 200 coins and placed them in the group they belonged based on tokenomics similarity.

1. PEPE Group
2. BTC Group
3. ETH Group
4. XRP Group
5. TAO Group
6. CAKE Group
7. WLD Group

Before I explain each based on MTC-FM value, I want to let you know that no group is perfect.

Even the PEPE, BTC and ETH group that are the top best 3, some coins in those groups may still disappoint while some in the bottom 4 may shock you.

Hence, expect surprises, but know the expected outcome of each group. A coin with a terrible tokenomics can get saved by an unexpected new factor and end up performing better than the ones with the best tokenomics and utility.

Any coin that increases its circulating supply while going up in price like Kaspa is a good coin, but one that increases its circulating supply while going down like ICP is a bad coin.

Though, Kaspa has its max supply shown while ICP's own is invisible (infinite). ICP is good now, but before, the tokenomics sucked.

I guess it's fine to say deflationary coin that doesn't have all of its values the same, but almost the same is a good buy as long as the price goes up when the remainder of the circulating supply is added. That means the coin is in high demand.

Buying a coin that isn't up to 90% unlock or doesn't have the percentage at all in bear market vs in bull market.

If the coin is newly launched in a bull market, especially altseason period, and hasn't gone parabolic yet, it's a good buy after all analysis approves it.

But if it has already gone parabolic twice or has done x10 or more after being listed on an exchange in a bull market, especially altseason or even in a bear market, avoid it. Why? It will slowly keep bleeding with some occasional pumps that won't last and the bleeding continues.

Each group has their leader's Inverted C image.

PEPE GROUP 1

Coins in this group have ALL their MTC-FM out and visible 100%. They are deflationary. Most fair launched coins belong here or in BTC Group. Best Group.

BTC GROUP 2

Coins in this group are deflationary and have ALL their MTC-FM out up to 95% except FDV is a little higher than MCap and that means it'll soon be 100% in few years. 2nd Best Group.

ETH GROUP 3

Coins in this group are inflationary. Most "burn" to make it deflationary. Their cir. supply is or almost the same as total sup. Same with MCap & FDV, but max supply is missing. 3rd Best Group.

XRP GROUP 4

Coins in this group have only 1 thing in common: max supply and total supply are the same. They are deflationary because of burning, but have about 50% or less of their circulating sup. not out yet. 4th Best Group.

TAO GROUP 5

Coins in this group have only 1 thing in common: total sup and circ. sup are the same. (MTC-FM are all available like PEPE, BTC, XRP and CAKE group).

CAKE GROUP 6

Coins in this group have ALL their MTC-FM out and available for anyone to munch, but none matches — too many discrepancies. This means they don't have a fair launch. 6th Best Group.

WLD GROUP 7

Coins in this group are inflationary. Most "burn" to make it deflationary. Max supply is missing. Too many discrepancies like Cake group. Worst group, but...

The worst and most manipulated group, but big shorting potential if they pump massively.

NOTE: If max supply is not showing on CoinMarketCap (CMC), it means it's inflationary. Also note that max sup that didn't show on CMC site/app may show on other sites like Coingecko, Coinslate and co. and it always uses the total supply value as the max supply value. In that case, the coin might somewhat be deflationary because of burning and it then may belong to PEPE, BTC, XRP or TAO group after critical re-analysis of where it truly deserves to be. Since you're using CoinMarketCap for your Research stick to it.

ETH and WLD group are the only two groups with missing maximum supply when checked on CoinMarketCap. What are they trying to hide? Anyway, as long as the project team and CEO have a good reputation, large adoption, and burn regularly to make it deflationary, we won't complain much, but we're watchful to avoid experiencing what happened to ICP (from top to bottom).

When you're done with all research and about to buy, ask yourself this question.

What is the SAVIOUR FACTOR of this coin despite all of its flaws? If you can't name at least 2 saviour factors, avoid it or only short it when it pumps.

Example: $Ton. What's the saviour factor of this coin?

TON: Belongs to the WLD group and that means terrible tokenomics for the public, but its saving grace for a pump is: it's new and trendy, good tech, a large community of Telegram users, regular burning to make it deflationary, big brand name and its longivity, and staking benefits for users and holders. This makes it attractive despite the bad tokenomics. So, early adopters are guaranteed to be rich from it, but until you take profit, it's not your money yet.

If the tokenomics of a coin is far from perfect, the saviournomic is good, but the market cap is way too big and bloated, in double digit, billions — (10 billion and above), then the red flag still exists, so you have to decide if you want to take the risk based on the season you're in or not.

If the coin is newly launched in a bull market, especially altseason, and hasn't gone parabolic yet, it's a good buy after all analysis approves it.

But if it has already gone parabolic twice or has done x10 or more after being listed on an exchange in a bull market, especially towards or at the top of altseason or even in a bear market, avoid it.

If it's not the top of altseason yet, you can take the risk. When the market tops, you pull out fast and short it with a good leverage. If it's bear market, don't DCA into it because it will slowly drain you to almost $0.

Buying a coin that isn't up to 90% unlock or doesn't have the percentage at all in a bear market or when the market has topped is one of the fastest ways to hand your money over to manipulative whales.

7 First Things to Do When You Want to Do a Tokenomics Research.

1. Check the percent on CMC site.
2. Check the coin against BTC to see if it's underperforming or not.
3. Do the MTC-FM analysis and categorise the coin into one of the 7 groups.
4. Check token unlock on CMS and Token unlock site to see if there is any upcoming unlock event.
5. List the saviour factors of the coin.
6. Check support and resistance and determine when it's best to buy, especially on 5 Green Day.
7. Set alarm to remind you when things gets to your desired position to buy.

Typing...

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.

Ethereum
Cardano

The MTC-FM and chart to be explained soon.

Binance
Solana

Terra (Luna and Lunc)

Polkadot
Avalanche

Cosmos
Tezos

EOS
Fantom

Celo
Flow

And finally

Near
Internet Computer

Explanation coming soon.

Wow... finally read to the end..

Quite lengthy,but worth the reading...

Boss ilegendd you too much...
I like how you simplified the explanation for it to sink well and understandable...there is real truth from what you said..

But can we really say cryptocurrency is like another form of ponzi scheme?....

I know BTC is quite strong, because that seems like the only coin that was genuinely created for it's original purpose,and I learnt some countries adopt it as its payment for goods and services....

Most big wigs are accumulating Bitcoin than other coin..

I was trying to see if I can re invest into the recent NOTCOIN,but one statement I captured from you, is making me to do my research more than I have envisioned...


NOTCOIN made some massive pump after miners sold their token..I too sold all of mine,not until I saw it making some crazy pump and no fund to invest again... though it has gone down again...

Recently,The developers I learnt burned some coin to help it get value,so it prompted me to one of your words which I attached to my signature below..

Boss, this is a gold mine. Thank you sir.

Nice read ilegendd, had to login after years of viewing as guest to say kudos.

Boss I just had to go to coingecko to check NOTCOIN...with the methods you put out here,it seems to be a good token... Everything is on point....from the mcap,total supply, circulating supply,fdv,etc....

But the issue of it pumping very high after it's listing is what I'm skeptical about....

Though it was launched on TON ecosystem,which makes it another assurance that it's community will push it forward...

Or what's your say boss ilegendd on NOTCOIN?...

First of all, I want to apologize to everyone for this long post. In fact, it can be easily turned to a book. Why was it long? I wrote the article 3 different times.

When I wanted to post, I didn't know the version to post. So, I had to merge all of them in one while making sure I control repetitiveness.

The merging wasn't easy, trust me. It took me days. I almost lost interest in finishing it.

Warning: Whoever refuses to read it now that it's free will wake up one day and buy it as an eBook for $50 — $200 and then, he'll read it. We only pay attention when we pay.

sholikay:
I was trying to see if I can re invest into the recent NOTCOIN,but one statement I captured from you, is making me to do my research more than I have envisioned...


NOTCOIN made some massive pump after miners sold their token..I too sold all of mine,not until I saw it making some crazy pump and no fund to invest again... though it has gone down again...

Recently,The developers I learnt burned some coin to help it get value,so it prompted me to one of your words which I attached to my signature below..

Only BTC not a scam. Mind you, more than 90% of everything in this world is a scam. Being a scam doesn't mean it won't fetch you money. It's just that someone will have to lose for you to win. The government is a scam.

See, since humans will not live forever, the only thing we need is food and pleasure. You can get food by going into agriculture. You can get pleasure from food or your woman. Every other thing is a distraction or a scam and this applies to crypto, stock, fiat currency, etc.

Is distraction bad? Not 100%. Sometimes, distraction is necessary to avoid boredom, hence altcoins were invented. If we had only BTC and USDT, the industry will be so boring.

To answer your question, I'll say we're not still in altseason neither are we in a bear market.

This is a bull market, but not altseason yet. So, NOT coin still has a long way to go, but that is in 2025. When to buy it since it has already pumped is now the problem.

If you buy now, BTC might dump to 56k or even lower and Not coin might dump 50% or less. At this point, you'll begin to feel bad and tell yourself you were a fool for not waiting. Also, if you don't buy now, it might pump so hard in few months' time and you'll feel like a fool for missing this great opportunity.

All I know is, Not Coin hasn't done its best yet. Also, it's good tokenomics. Just that it can increase its Elon Max supply at will, push it to Mr. Total and then pushed to Mr. Cir. If there is no one to buy, the price will tank.

This is why there needs to be volume and a diehard community for it to pump. There are some coins I'll only buy in 2025 and dump them in Nov/Dec. 2025.

iLegendd:


Only BTC not a scam. Mind you, more than 90% of everything in this world is a scam. Being a scam doesn't mean it won't fetch you money. It's just that someone will have to lose for you to win. The government is a scam.

See, since humans will not live forever, the only thing we need is food and pleasure. You can get food by going into agriculture. You can get pleasure from food or your woman. Every other thing in is a distraction or a scam and this applies to crypto, stock, etc.

Is distraction bad? Not 100%. Sometimes, distraction is necessary to avoid boredom, hence altcoins were invented. If we had only BTC and USDT, the industry will be so boring.

To answer your question, I'll say we're not still in altseason neither are we in a bear market.

This is a bull market, but not altseason yet. So, NOT still have a long way to go, but that is in 2025. When to buy it since it has already pumped is now the problem.

If you buy now, BTC might dump to 56k or even lower and Not coin might dump 50% or less. At this point, you'll begin to feel bad and tell yourself you were a fool for not waiting. Also, if you don't buy now, it might pump so hard in few months' time and you'll feel like a fool for missing this great opportunity.

All I know is, Not Coin hasn't done its best yet. Also, it's good tokenomics. Just that it can increase its Elon Max supply at will, push it to Mr. Total and then pushed to Mr. Cir. If there is no one to buy, the price will tank.

This is why there needs to be volume and a diehard community to it to pump. There are some coins I'll only buy in 2025 and dump them in Nov/Dec. 2025.

u better go back to writting books and leave this gambling called crypto

sholikay:
Wow... finally read to the end..

I was so scared of the length too. I know out of 1000 people that'll open the post, only 250 will read to the end. It's just life. No matter how good something is, the moment it's too much, it's boring.

Typing...

Pepe Group

More info about this coming.

Btc Group

More info about this coming.

Eth Group

More info about this coming.

Xrp Group

More info about this coming.