The best thing you should check before investing in any token is the tokenomics, like how many tokens are locked. For example, you know about Filecoin, which is a very fundamentally strong project. But why has its supply increased a lot?
Suppose, you remember Dotcoin, when it was listed, its price was almost around $10, and its market cap was around 11-12 billion dollars. The price is still not $70. Why? Because its supply increased from 100 million to 500 million. So, the tokenomics play a big role in these cases.
Another example, if you’re investing in any project, the first thing you need to check is its tokenomics.
If the supply is unlocked over time, the price might drop significantly. So always check the tokenomics, how many tokens are locked, and how much is circulating. I’ve suggested projects with strong fundamentals before, and I always prefer projects where the demand is very high.
Bitcoin supply is fixed at 21 million, and only 18 million are in circulation. It will take 100-150 years to mine the remaining coins. That’s why it’s a good investment.
So, before investing in any token, always understand its tokenomics and supply. Don’t just listen to what others say, go and check how many tokens are locked and when they will be unlocked. For example, I suggested AION, which was at $2, and its fundamentals were very strong. But its supply unlocking caused it to not perform well after that.
So, these are the things we need to consider. I hope this answers why some people get stuck in certain projects. You should avoid investing in projects where you see high risks or token unlocks in the short term.
THANK YOU!
