Token

Higher

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/altcoin-projects-rethink-token-strategies" data-wpel-link="internal" rel="noopener noreferrer nofollow">Altcoin Projects Rethink Token Strategies</a><br></p>
<p style="text-align: justify">The prevalent notion that the cryptocurrency market is primarily driven by speculation continues to hinder the development of a sustainable ecosystem. To counter this, altcoin projects are urged to reevaluate their <a href="https://en.bitcoinhaber.net/bitcoin-surpasses-65000-mark-2" data-wpel-link="internal" rel="noopener noreferrer nofollow">token</a> distribution strategies, focusing on long-term value and transparency rather than inflated market valuations. Experts argue that shifting towards these principles is crucial for attracting more users and boosting altcoin adoption.</p>
<h2 id="low-circulation-high-fdv-model-explained">Low Circulation, High FDV Model Explained</h2>
<p style="text-align: justify">Recently, numerous altcoin projects have adopted the “low circulation, high fully diluted valuation (FDV)” strategy. This involves launching tokens at a high price with minimal circulation, creating an inflated valuation to generate excitement. However, this approach has been criticized for causing artificial inflation and misleading <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a> about the token’s true market potential.</p>
<p style="text-align: justify">In the “low circulation, high FDV” model, a small portion of the token supply is released at a high price, creating a deceptive FDV. Investors often overlook the remaining supply yet to enter circulation. Although this model may attract short-term interest, it typically fails to deliver long-term benefits and sustainability, which are crucial for the success of altcoin projects.</p>
<h2 id="alternative-token-distribution-models">Alternative Token Distribution Models</h2>
<p style="text-align: justify">In contrast, some altcoin projects are now exploring alternative token distribution models. For instance, the Blockchain-based social platform FRIEND launched with a 100% circulation rate by distributing all its tokens to the community at the outset. Other projects like Lava Network have adopted similar strategies. These models aim to foster long-term benefits and organic growth by basing the token’s market value on real-world utility rather than speculation.</p>
<p style="text-align: justify">This new strategy involves setting a market-focused FDV through decentralized exchanges (DEX), thereby reducing speculative behavior. With higher initial circulation and limited supply, the approach emphasizes the token’s intrinsic value and real-world potential.</p>
<h2 id="key-insights-for-investors">Key Insights for Investors</h2>
<p style="text-align: justify">Here are some key takeaways for investors considering these alternative token distribution models:</p>
<ul>
 <li>Reduced speculation and increased transparency.</li>
 <li>Promotion of organic growth over artificial hype.</li>
 <li>Focus on long-term sustainability rather than short-term gains.</li>
 <li>Higher initial circulation can lead to more stable market valuations.</li>
</ul>
<p style="text-align: justify">Despite potential risks such as slower initial growth or lower valuations, the long-term benefits of sustainable protocols are significant. Projects adopting these new strategies are paving the way for a more robust and transparent cryptocurrency ecosystem.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/altcoin-projects-rethink-token-strategies" data-wpel-link="internal" rel="noopener noreferrer nofollow">Altcoin Projects Rethink Token Strategies</a></h5>

Altcoin Projects Rethink Token Strategies

Table of Contents

BH NEWS

Other articles published on Aug 10, 2024

Top 3 Cryptocurrencies to Consider After Bitcoin’s Recovery in The Market: Solana, Hamster Kombat...

Market Maker Company Transfers This Altcoin to Cryptocurrency Exchange Binance

Ripple CLO Urges Kamala Harris To End SEC’s Misguided War On Crypto!

Tether CEO: MiCA Risks Bank Runs, Not Stability

Rollblock Continues To See Increasing Volume As Experts Predict 200x Run; MATIC and FET Falter

Ripple’s CLO Calls on Kamala Harris to Address SEC’s Crackdown on Crypto

Join our free newsletter for daily crypto updates!