iLegendd: With the knowledge from this thread, you'll now know what a bad coin is vs a good one and if you're into futures trade, at the top of the altseason, start checking the top 1000 coins that have terrible and vulnerable tokenomics and are listed for futures on exchanges and start shorting then smartly because most of them do token unlock that period.
As the coin bleeds, you'll be making money because las las bleeding is the only option — even coins with good tokenomics will bleed that period let alone one with a terrible one.
Thank you very much ilegendd for this wonderful piece. It was really an eye opener and I learnt a lot, na legend you be. More knowledge and blessings 👏💪
I compiled a list of the top 200 coins and classified them based on tokenomics group they belong. If any changes, it means the coin has increased its max supply and it has affected both total and circulating supply or coins held in total supply is now in circulation after token unlock.
I want you to do the same. Have these groups and any coin you hear people talk about, check the tokenomics and put it in the group it belongs. This will keep you organised.
Once it a while, you check each group to sort things and see the ones that are ready to be bought. Also, to see if it has improved so you can change its group.
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...
There are many inflationary coin that have survived and still doing well
iLegendd: List 10 and they should be listed on Binance, Coinbase, Bybit or OKX. If they're listed in 3 or more of the big exchanges, good, but in just 1, bad.
So, list 10 of them let me check them out. I might add something new to my portfolio. I'm always ready to learn and improve.
Greetings illegend. Some of those bottom coin in the alt season index had their maximum tokens hidden on cmc, another thing was that the circulating supply was lesser than max supply.
I liked the gamble but was too scared to follow through, i am learning some much in this few weeks of following your teachings, thanks so much
Greetings illegend. Some of those bottom coin in the alt season index had their maximum tokens hidden on cmc, another thing was that the circulating supply was lesser than max supply.
I liked the gamble but was too scared to follow through, i am learning some much in this few weeks of following your teachings, thanks so much
Yes, they have terrible tokenomics, but that doesn't mean they don't pump. It's just that when they dump, it's always massive — same with when they pump.
Greetings illegend. Some of those bottom coin in the alt season index had their maximum tokens hidden on cmc, another thing was that the circulating supply was lesser than max supply.
I liked the gamble but was too scared to follow through, i am learning some much in this few weeks of following your teachings, thanks so much
There is a video I'll post that'll broaden your mind more on that. It's only for those who have read my tokenomics post. If you haven't, you won't understand the video.
It's a 53 minute video, but start watching from 46 minutes, that's the part we're interested in ONLY.
With this new knowledge, you'll understand how to navigate those new coins with terrible tokenomics and make lots of profit instead of avoiding them totally because they love to pump a lot before the main token unlock.
iLegendd: List 10 and they should be listed on Binance, Coinbase, Bybit or OKX. If they're listed in 3 or more of the big exchanges, good, but in just 1, bad.
So, list 10 of them let me check them out. I might add something new to my portfolio. I'm always ready to learn and improve.
Bitcoin is inflationary alot of coins doing well are also.
The question you will ask is why are they sir.
The deflationary coins could also end up as a scam coin if all whales sell.
I dont reccommend coins, deflationary or inflationary just invest well sir.
Bitcoin is inflationary alot of coins doing well are also.
The question you will ask is why are they sir.
The deflationary coins could also end up as a scam coin if all whales sell.
I dont reccommend coins, deflationary or inflationary just invest well sir.
I would love to learn more about BTC being inflationary and I'm still interested in you listing 10 of them that are popular and listed on big exchanges.
Our main purpose here is to learn, so don't shy away from it even though I know you will.
sholikay: Good evening boss ilegendd... I don't know where to post this,so as to get your input on this..
In future trade,what's cross margin, isolated margin and leverage...
I need a simple explanation just like how you make crypto explanation easier for us...
Thank you boss..
Heard of siamese twins? Those conjoined twins?
Since two of them are joined (they are called cross margin), so we need Ben Carson, the surgeon, to separate (isolate) them.
You have $100 to trade with, but you only want to trade with $10 and nothing more, you use isolated margin.
Or, you want to trade with $10, but you want to keep your remaining $90 as backup to avoid quick liquation, you use cross margin.
There is something called liquidation.
When you're trading with $10 alone without $90 backup, your liquidation will reach faster and you may lose the $10. (Isolated margin)
To avoid fast liquidation when trading with $10, you trade with cross margin, because you have extra $90 as automatic backup to avoid being liquidated easily.
In isolated margin, when you're close to liquidation, you'll have to manually add extra money into your derivative wallet from your spot or funding wallet, but with cross margin, you add all the $100 at once while trading with only $10.
In fact, the simple way to explain it is: isolated is for people that don't want to lose more than $10 out of the $100 they have in their account while cross is for people that don't care to lose everything.
For me, I'm among the people that don't care to lose everything, so I only use cross margin. Back in the days of learning and practicing, I used only isolated, but now, I only use cross margin.
The word leverage is just the process of what you're doing. L. Yamal is leveraging on L. Messi's bathing to become more popular just the same way IshowSpeed is using Ronaldo's name to become more popular.
So, leverage is the process of using the exchange's extra money they'll lend you based on what you already have to add to your main cash to make money faster or lose money faster.
In this leverage, there are numbers to select and this will determine how fast or slow you want to multiply or lose your money.
Big number is bad for beginners, so you'll have to use 2-7 max. For pro, they can use any number based on how they can manage their risks or emotions.
iLegendd: Heard of siamese twins? Those conjoined twins?
Since two of them are joined (they are called cross margin), so we need Ben Carson, the surgeon, to separate (isolate) them.
You have $100 to trade with, but you only want to trade with $10 and nothing more, you use isolated margin.
Or, you want to trade with $10, but you want to keep your remaining $90 as backup to avoid quick liquation, you use cross margin.
There is something called liquidation.
When you're trading with $10 alone without $90 backup, your liquidation will reach faster and you may lose the $10. (Isolated margin)
To avoid fast liquidation when trading with $10, you trade with cross margin, because you have extra $90 as automatic backup to avoid being liquidated easily.
In isolated margin, when you're close to liquidation, you'll have to manually add extra money into your derivative wallet from your spot or funding wallet, but with cross margin, you add all the $100 at once while trading with only $10.
In fact, the simple way to explain it is: isolated is for people that don't want to lose more than $10 out of the $100 they have in their account while cross is for people that don't care to lose everything.
For me, I'm among the people that don't care to lose everything, so I only use cross margin. Back in the days of learning and practicing, I used only isolated, but now, I only use cross margin.
The word leverage is just the process of what you're doing. L. Yamal is leveraging on L. Messi's bathing to become more popular just the same way IshowSpeed is using Ronaldo's name to become more popular.
So, leverage is the process of using the exchange's extra money they'll lend you based on what you already have to add to your main cash to make money faster or lose money faster.
In this leverage, there are numbers to select and this will determine how fast or slow you want to multiply or lose your money.
Big number is bad for beginners, so you'll have to use 2-7 max. For pro, they can use any number based on how they can manage their risks or emotions.
Thanks for this input, to add to this, let's say someone buys Notcoin at 0.15/NOT, if the coin does 10% rise on spot and someone on futures uses 10X leverage, it means the person on futures will gain 100% of whatever they invested.
So if you invested $10 on spots, you get $20 back, if it goes 10% down, you loose everything , your $10 if you used isolated margin, if you use cross, well as Legend has said,it will enter your remaining balance
iLegendd: I would love to learn more about BTC being inflationary and I'm still interested in you listing 10 of them that are popular and listed on big exchanges.
Our main purpose here is to learn, so don't shy away from it even though I know you will.
I just pointed out to what i believe might be an error...
Bitcoin is currently an inflationary coin because the number of circulating coins will continue to rise till 2040..
You so much praise deflationary coins let me talk about pandora coin (i dont reccomend coins) pandora was 30k dollar as when i was studying it now it is less than 3k.
Deflationary coins can rise if they favour you good buy them but note that there are serious risk as they can dump more than inflationary coins when the big stakers sell there coins.
If buying deflationary coins alone will make one successful then sorry in advance because success is rare.
iLegendd: Heard of siamese twins? Those conjoined twins?
Since two of them are joined (they are called cross margin), so we need Ben Carson, the surgeon, to separate (isolate) them.
You have $100 to trade with, but you only want to trade with $10 and nothing more, you use isolated margin.
Or, you want to trade with $10, but you want to keep your remaining $90 as backup to avoid quick liquation, you use cross margin.
There is something called liquidation.
When you're trading with $10 alone without $90 backup, your liquidation will reach faster and you may lose the $10. (Isolated margin)
To avoid fast liquidation when trading with $10, you trade with cross margin, because you have extra $90 as automatic backup to avoid being liquidated easily.
In isolated margin, when you're close to liquidation, you'll have to manually add extra money into your derivative wallet from your spot or funding wallet, but with cross margin, you add all the $100 at once while trading with only $10.
In fact, the simple way to explain it is: isolated is for people that don't want to lose more than $10 out of the $100 they have in their account while cross is for people that don't care to lose everything.
For me, I'm among the people that don't care to lose everything, so I only use cross margin. Back in the days of learning and practicing, I used only isolated, but now, I only use cross margin.
The word leverage is just the process of what you're doing. L. Yamal is leveraging on L. Messi's bathing to become more popular just the same way IshowSpeed is using Ronaldo's name to become more popular.
So, leverage is the process of using the exchange's extra money they'll lend you based on what you already have to add to your main cash to make money faster or lose money faster.
In this leverage, there are numbers to select and this will determine how fast or slow you want to multiply or lose your money.
Big number is bad for beginners, so you'll have to use 2-7 max. For pro, they can use any number based on how they can manage their risks or emotions.
Thanks for this input, to add to this, let's say someone buys Notcoin at 0.15/NOT, if the coin does 10% rise on spot and someone on futures uses 10X leverage, it means the person on futures will gain 100% of whatever they invested.
So if you invested $10 on spots you get $20 back, if it goes 10% down, you loose everything , your $10 if you used isolated margin, if you use cross, well as Legend has said,it will enter your remaining balance
Or you mean future?.. at the bolded..
To get your explanation well too... The isolated helps one to be able to set market order,take profits and stop loss, while the cross margin won't allow you to set stop loss and whatever limit you want to set...
To get your explanation well too... The isolated helps one to be able to set market order,take profits and stop loss, while the cross margin won't allow you to set stop loss and whatever limit you want to set...
Is that not it boss?..
The isolated margin means if your $10 reaches liquidity, the 10% is gone for life but with cross margin, the 10$ will be wiped but the exchange will take more money from your remaining balance assuming you transfer $100 for futures trading only, the loss will wipe your $10 and then start coming for your $90 balance.
For me, i like isolated margin cos if i get liquidated, I'll double down using martingale and DCA and go again.
So if i took a short trade and i get liquidated at $10, I'll now use $20 and go short again, if $20 get liquidated, I'll use $40 to go short again. I can only go 5 times so that's my own strategy, at least for now.
Just need it to move 10% in my direction and I'll be 100% profit in my futures trade
BOSS ILEGENDD, Pls I have observed that some coins that have their circulating supplies fully circulated on other tracking sites likes but yet on CMC tends to be self circulated coingecko, coinranking. Most times when I buy this coins I mostly get burned. Please what's your advice SIR. THANK YOU BOSS ILEGENDD
Kingsolar: BOSS ILEGENDD, Pls I have observed that some coins that have their circulating supplies fully circulated on other tracking sites likes but yet on CMC tends to be self circulated coingecko, coinranking. Most times when I buy this coins I mostly get burned. Please what's your advice SIR. THANK YOU BOSS ILEGENDD
CMC, Gecko, etc. get their data directly from the blockchain, but some projects, with terrible tokenomics make those sites put a different value they provided by themselves, hence, self-reported. Most times, the project team is lying, but sometimes, they aren't. So, 90% of the time, see self-reported as redflag.
iLegendd: CMC, Gecko, etc. get their data directly from the blockchain, but some projects, with terrible tokenomics make those sites put a different value they provided by themselves, hence, self-reported. Most times, the project team is lying, but sometimes, they aren't. So, 90% of the time, see self-reported as redflag.
GOD BLESS YOU SIR.
SIR ILEGENDD, Pls don't be offended I still have another question. In my observations; I have noticed that most new coins on DEX are mostly fully circulated compare to new coins on CEX. WILL YOU RATHER WE BUY THEN WHILE THEY ARE YET ON CEX?
SIR ILEGENDD, Pls don't be offended I still have another question. In my observations; I have noticed that most new coins on DEX are mostly fully circulated compare to new coins on CEX. WILL YOU RATHER WE BUY THEN WHILE THEY ARE YET ON CEX?
Lots of the new coins on DEX, 90% or more, are scams. Scammers always want to make everything look perfect to trick you.
Before you buy them, you must do a thorough rugpull check.
iLegendd: CMC, Gecko, etc. get their data directly from the blockchain, but some projects, with terrible tokenomics make those sites put a different value they provided by themselves, hence, self-reported. Most times, the project team is lying, but sometimes, they aren't. So, 90% of the time, see self-reported as redflag.
Please what does this 10.4k PIX on their dashboard stands for?
shiffynaani: sir ilegend, after doing all the thorough research and the coin looks okay, how do we now know the exact time to buy or short the coin sir?
pls I'm a novice sir. don't mind my question
I have made posts or comments concerning this, but I can recall where it is.
The summary is: Long when there is a crash and everywhere is red and bloody (oversold). Short when everywhere is green for weeks and it's at overbought.
iLegendd: I have made posts or comments concerning this, but I can recall where it is.
The summary is: Long when there is a crash and everywhere is red and bloody (oversold). Short when everywhere is green for weeks and it's at overbought.
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.
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.
