Topic: Tokens/coins with insanely high inflation will not be not profitable ever (Read 521 times)
October 08, 2022, 08:50:32 AM
these are the characteristics of shitcoins in general they are usually short lived due to the fact that they are having such massive fluctuation than the other coin making them seems like gambling. moreover i think everyone knows that investing in these coin for too long will just cause losing money therefore rarely someone gonna invests in long term. moreover there's bigger chance of that fluctuation caused by manipulation.
October 01, 2022, 09:03:47 PM
We came to the cryptocurrency market to escape the inflation that exists in fiat currencies, but here we encounter assets with inflationary structures. This must be a joke. I can't think of anything else. Any asset that has a supply-demand balance problem will never be profitable. I hope everyone understands this. This is not just a case of the cryptocurrency market. This is something that happens in all economic conditions.
Offering fake promise like big reward in a short time was just another scam sign. You call it common but in crypto some projects where offering more than 1 millions percents of APY for the early adopters. I never found this anywhere and that's only in the crypto. Even HYIP was not also offering something big like that. that's definitely bullshit man. Inflation is a very bad thing even so many countries were in the crisis due to the inflation,There are actually several projects that offer Highest APY to attract investors and traders, such as the Sphere project.But it doesn't last forever, after the token is listed on the exchange, then APY is stopped with the aim of increasing the value of the token. So if any project offers Highest APY for a long time, for me it needs to be revisited
October 08, 2022, 11:46:33 PM
Aside from them having no use cases...
* Price of one token will automatically decrease when there's a flood of free tokens getting into markets and scarcity of the token decreases.
* Even if you look at it from the point where your bag wouldn't necessarily lose value as in whole, as it too is increasing with the circulating supply there's one thing you forget, and that's traders. Traders use altcoin or fiat money pairs to do technical analysis, and it obviously will look bad when the trader sets the targets. That would mean that charters would need to use marketcap graph to find a bullish TA and probably no one would even bother to do that as very few do it now.
* Rebasing as a solution is worst possible as it eats away the whole idea of having high interest from staking in the first place.
So why the hell do they keep coming back on the markets?
* Price of one token will automatically decrease when there's a flood of free tokens getting into markets and scarcity of the token decreases.
* Even if you look at it from the point where your bag wouldn't necessarily lose value as in whole, as it too is increasing with the circulating supply there's one thing you forget, and that's traders. Traders use altcoin or fiat money pairs to do technical analysis, and it obviously will look bad when the trader sets the targets. That would mean that charters would need to use marketcap graph to find a bullish TA and probably no one would even bother to do that as very few do it now.
* Rebasing as a solution is worst possible as it eats away the whole idea of having high interest from staking in the first place.
So why the hell do they keep coming back on the markets?
You are right, usually, high-inflation tokens/coins are meant to be highly consumed for something, like gaming purposes but as you said it's meaningless to have high inflation for just the sake of inflation only, you need to meet the demands, if it's condition doesn't meet, it's just a straight elevator down on price.
October 08, 2022, 08:07:14 PM
these are the characteristics of shitcoins in general they are usually short lived due to the fact that they are having such massive fluctuation than the other coin making them seems like gambling. moreover i think everyone knows that investing in these coin for too long will just cause losing money therefore rarely someone gonna invests in long term. moreover there's bigger chance of that fluctuation caused by manipulation.
Without a doubt people that have a lot of experience in this market know what to expect out of those shitcoins, and while I stay out of them out of principle I can understand those which decide to take their chances with those coins as long as they understand the risks they are taking, the problem is there are a lot of people which do not really understand what they are doing as they legitimately believe they can earn a huge amount of money with those coins and decide to hold them for the long term, something we know is not a good idea. 
October 08, 2022, 07:25:24 AM
Whether high inflation or low inflation, there has to be utilities for a coin or token to keep performing well in all market situation. Without that, the coin/token will only amount to just a pump and dump one which only relies on hypes of social influencers to perform in term of price.
Yes that's true if without utility of course it will end up like most meme coins,but nowadays not all meme coins are like that because we can see like dogecoin and shiba inu it's a favorite coin,
if you want to make a profit, do research before investing because there are also many coins without any utility
Actually as long as we choose projects based on the results of our own research and analysis everything will be fine. The problem is if we choose
projects based on signals from others, especially if we trust influencers who promote on social media too much, it is very risky and highly discouraged.
Because most influencers promote projects without utility, in the end those projects are only used for pump and dump. What most influencers think
about is their own profit, so they will promote projects that can benefit them, even if those projects are shitcoins and can harm other people.
So my advice make sure we only trust our own opinion, because in my opinion the safest is to choose projects according to our own analysis.
We can choose potential projects, so the possibility of us choosing the wrong projects can be minimized. Because right now, most of the projects
circulating in the market are without utility and are at risk of becoming scams. That's why we have to be very careful in choosing projects for investment.
October 08, 2022, 03:57:21 AM
Whether high inflation or low inflation, there has to be utilities for a coin or token to keep performing well in all market situation. Without that, the coin/token will only amount to just a pump and dump one which only relies on hypes of social influencers to perform in term of price.
Yes that's true if without utility of course it will end up like most meme coins,but nowadays not all meme coins are like that because we can see like dogecoin and shiba inu it's a favorite coin,
if you want to make a profit, do research before investing because there are also many coins without any utility
October 05, 2022, 11:06:42 PM
Simply these mediocre project are the product of developers that want quick profit in the market of crypto. They feed on the money of dumb traders that always taking risk on this kind pump and dump project. They are the ponzi of crypto an using the smart contract and cheap website to create cheap project for there token. These tokens will keep coming back as long as there’s a trader buying it.
This is the norm on crypto and we can’t dictate dumb traders to not buying this kind of bullshit tokens because they have there own bullshit reason to lose there money.
This is the norm on crypto and we can’t dictate dumb traders to not buying this kind of bullshit tokens because they have there own bullshit reason to lose there money.
I once came across this kind of project where they are kinda active in the first phase of their promotions and when the people flock to buy their coins, they often don't give a damn after that. they just run away with the money and leave their coins to sink their price until they almost become nothing. Luckily I was able to sell when the price was still profitable and I feel sorry for those people who never get back their capital after the coin has sunk to the bottom and never recover again.
October 05, 2022, 08:39:04 PM
Lol, I created a similar thread on the local board to address this issue. What I found is that all of the coins with high inflation and even with auto staking/rebasing, all ended up in the dumpster. With too many circulating supply, it would be extremely difficult to pump the price.
It's funny how people think LUNC (Luna Classic) can be a $1 token without extreme burning. The formula is easy, market cap = supply * price. Just input any price you think is achievable and look at its market cap, you can then judge whether it's rational or not.
While coins must be a serious project, probably for the "get rich quick" scheme, tokens can be just for fun, especially if these were built on top of a cheap chain.
It's funny how people think LUNC (Luna Classic) can be a $1 token without extreme burning. The formula is easy, market cap = supply * price. Just input any price you think is achievable and look at its market cap, you can then judge whether it's rational or not.
While coins must be a serious project, probably for the "get rich quick" scheme, tokens can be just for fun, especially if these were built on top of a cheap chain.
yep this guy was right before investing looking at tokenomic and total supply is really big deal.
memecoin usually have dozen of circulating supply and have unlimited total supply which is bad if there is no burning mechanism. eth is unlimited supply but they have burning mechanism the bnb has limited supply but still they conduct burning per quarter
lunc offcourse can be 1$ if their supply back before their crash
October 05, 2022, 08:09:59 PM
Offering fake promise like big reward in a short time was just another scam sign. You call it common but in crypto some projects where offering more than 1 millions percents of APY for the early adopters. I never found this anywhere and that's only in the crypto. Even HYIP was not also offering something big like that. that's definitely bullshit man. Inflation is a very bad thing even so many countries were in the crisis due to the inflation,
This is what happens when people that do not know anything about investing come to this market, even something as small as 0.5% per day is almost impossible to accomplish, the number may look small but over a whole year the profits become quite significant, however since scammers want to attract the most people possible to their projects before they run with the money they offer amounts that are impossible to accomplish, and in their naivete people believe they have found a gold mine instead of thinking that it is impossible for anyone to give those huge profits away. October 01, 2022, 08:46:15 PM
We came to the cryptocurrency market to escape the inflation that exists in fiat currencies, but here we encounter assets with inflationary structures. This must be a joke. I can't think of anything else. Any asset that has a supply-demand balance problem will never be profitable. I hope everyone understands this. This is not just a case of the cryptocurrency market. This is something that happens in all economic conditions.
You need to understand that the motivations of each person are different, it is clear that for those which actually believe in the technology behind bitcoin and the principles which support its high value, a high level of inflation and no limit at all in the amount of coins that are going to ever exist is without a doubt a dealbreaker, but for those that have come to this market thinking only about the profits they can get then something like this is not really a problem, and quite honestly they do not care as long as they can get profits with those coins. 
October 01, 2022, 05:35:44 PM
basically all shit coins are much more fluctuative than the other coin in general, this makes them interesting coin for investments since you could quite literally make some good return in short term but as you said it will not lasts long. the economy in these coins are unsustaining, moreover it's just trend that will eventually fade, in few months many of these coins will eventually losing value since they are just shit coins and they are having short life cycle like meme coins in generals.
September 28, 2022, 08:47:57 PM
it should be. but these kind of tokens usually explode faster with the hype in the beginning, those who enter in the beginning are very lucky because the profit is big but after that we will see this kind of project will go down very quickly even to not worth until the rugpull. I'm more away from this kind of token.
We must remember that when it comes to the markets common sense will not always apply, if people are willing to invest their money in a shitcoin then that shitcoin will go up in value at an incredible speed even if the fundamentals of the coin are flawed, in my opinion it is not worth it to invest in those coins despite the chance of this happening as you simply do not know in which coin that pump will happen or when it will happen, which makes it incredibly risky to invest in those coins if you ask me. 
September 26, 2022, 10:09:11 AM
As far as the crypto market is operating there will be such coins which are don't have any potential in the long run.
They might show good results in the beginning but as time goes their value fall over the period and at one point the price will dump to no return.
All of these coins are developed just for the hype. There's no usecase to such coins. Buying these coins will put us in a huge risk.
It's better to buy only the established coins with real use cases.
They might show good results in the beginning but as time goes their value fall over the period and at one point the price will dump to no return.
All of these coins are developed just for the hype. There's no usecase to such coins. Buying these coins will put us in a huge risk.
It's better to buy only the established coins with real use cases.
September 26, 2022, 09:50:54 AM
However, there is one other reason that this token is being traded, and that's because there are traders who are speculating on its price.
Speculators are always looking for the short term profit from trading anything. I prefer to call them all scalpers rather than speculators. There's nothing to be speculated on the shit scam token like that. The inflation token was just only for the betting purpose. I never see any reliable inflation token. All of tokens were actually offering huge APY was just turn to be a scam token later after it has been launched to the market.
That's very sad that some people are still expecting a huge gain from there instead of thinking to lose a lot
September 26, 2022, 07:46:25 AM
That's very true, tokens with very high inflation will be very susceptible to dropping drastically and that has happened a lot with Defi projects or token memes. Many of these tokens have suddenly increased in price and in the end most of these tokens have become shittokens now.
The price will be decreasing instantly without prevention. So many times token with huge inflation worth nothing. Even some tokens issued by big companiies like axie was also going down so hard. Early adopters will always dump this token. It's caused by they can earn lots of tokens from staking at the early phase. High inflation token is guaranteed to be a zero value token. This is happening so many times and i have said based on my experience saw that in the market.
September 26, 2022, 05:14:05 AM
Aside from them having no use cases...
* Price of one token will automatically decrease when there's a flood of free tokens getting into markets and scarcity of the token decreases.
* Even if you look at it from the point where your bag wouldn't necessarily lose value as in whole, as it too is increasing with the circulating supply there's one thing you forget, and that's traders. Traders use altcoin or fiat money pairs to do technical analysis, and it obviously will look bad when the trader sets the targets. That would mean that charters would need to use marketcap graph to find a bullish TA and probably no one would even bother to do that as very few do it now.
* Rebasing as a solution is worst possible as it eats away the whole idea of having high interest from staking in the first place.
So why the hell do they keep coming back on the markets?
* Price of one token will automatically decrease when there's a flood of free tokens getting into markets and scarcity of the token decreases.
* Even if you look at it from the point where your bag wouldn't necessarily lose value as in whole, as it too is increasing with the circulating supply there's one thing you forget, and that's traders. Traders use altcoin or fiat money pairs to do technical analysis, and it obviously will look bad when the trader sets the targets. That would mean that charters would need to use marketcap graph to find a bullish TA and probably no one would even bother to do that as very few do it now.
* Rebasing as a solution is worst possible as it eats away the whole idea of having high interest from staking in the first place.
So why the hell do they keep coming back on the markets?
Not necessarily, Ethereum is the prime example of that, without any cap of it's maximum supply people still believe in it, and now it already reach more than 122M of total supply, and I believe that many people has made profit out of Ethereum, other example is ADA / Cardano the current circulating supply is 34B, and the max cap is 45B, it is now a top 10 coin in Coinmarketcap. There are many other factor beside coin supply, the maximum or circulating supply is indeed have and effect on token price but it's not that significant.
September 25, 2022, 08:57:40 PM
At present the competition in the market is very tight, the crazy thing that must be done by a new developer is with a pump of up to thousands of percent, this will be trending and then they motivate in the Twitter, Telegram, Discord and so on, when there is a natural pump by users, slowly they are slow selling and finally the coins or tokens die.
When the price is due to hype better sell it when already in profit. No matter how high inflation is when we know how to handle our money we will be able to have a profit depending on our strategy. We can have profit when we’re able to get coins before the hype is over and invest in again in other coins that already have proof of success in the long run or is able to recover even the market is in bear season. We need to adjust our style in trading depending in the market situation.It’s very easy to suggest to take profit after the hype but it’s really hard to predict when will the hype is over when you are trading a certain token that is currently on hype because your emotion will cloud your decision to take profit early since you will be greedy to earn more and missed out possible profit.
Taking profit when your investment reach a certain profit percentage regardless whether the hype is over or not is the best indicator to take profit so that your decision will not be affected by emotion if you have a clear goal.
September 23, 2022, 09:55:08 AM
At present the competition in the market is very tight, the crazy thing that must be done by a new developer is with a pump of up to thousands of percent, this will be trending and then they motivate in the Twitter, Telegram, Discord and so on, when there is a natural pump by users, slowly they are slow selling and finally the coins or tokens die.
When the price is due to hype better sell it when already in profit. No matter how high inflation is when we know how to handle our money we will be able to have a profit depending on our strategy. We can have profit when we’re able to get coins before the hype is over and invest in again in other coins that already have proof of success in the long run or is able to recover even the market is in bear season. We need to adjust our style in trading depending in the market situation.It’s very easy to suggest to take profit after the hype but it’s really hard to predict when will the hype is over when you are trading a certain token that is currently on hype because your emotion will cloud your decision to take profit early since you will be greedy to earn more and missed out possible profit.
Taking profit when your investment reach a certain profit percentage regardless whether the hype is over or not is the best indicator to take profit so that your decision will not be affected by emotion if you have a clear goal.
September 23, 2022, 09:50:25 AM
At present the competition in the market is very tight, the crazy thing that must be done by a new developer is with a pump of up to thousands of percent, this will be trending and then they motivate in the Twitter, Telegram, Discord and so on, when there is a natural pump by users, slowly they are slow selling and finally the coins or tokens die.
When the price is due to hype better sell it when already in profit. No matter how high inflation is when we know how to handle our money we will be able to have a profit depending on our strategy. We can have profit when we’re able to get coins before the hype is over and invest in again in other coins that already have proof of success in the long run or is able to recover even the market is in bear season. We need to adjust our style in trading depending in the market situation. September 22, 2022, 08:59:10 PM
That's very true, tokens with very high inflation will be very susceptible to dropping drastically and that has happened a lot with Defi projects or token memes. Many of these tokens have suddenly increased in price and in the end most of these tokens have become shittokens now.
There is a small mistake in what you say, those tokens with very high inflation did not became shitcoins, they were shitcoins from the very beginning, it is just that people ignored that fact because they were watching the price of that coin going up systematically. So they thought that it was a given and that the coin will keep going up in value, but at some point in time common sense has a way to impose itself and once there were not enough people to keep pushing the price up then a collapse followed almost immediately. Jump to: