An observation from our top analyst (Mr. Y) about alts: On the artificial demand of tokens...
On the artificial demand of tokens (opinion and own observations)
- When we talk about a token we refer to a voucher of any form that can be redeemed for a certain good or service. In the crypto space it is mostly a service or the right of usage for a specific software product, the most common example are ERC20-tokens.
What i observed is that the real demand of these tokens is minimal, over 90% of the demand is artificial. When i say "artificial" i mean they are in most cases not bought with the intent to use them for their destined purpose. They are bought with the intent to sell them later for a higher price.
This creates a very dangerous environment because supply and (real) demand are highly imbalanced. This leads me to the conclusion that the vast majority of tokens are overvalued.
A better investment are the underlying platforms on which these tokens are build on. Because in contrast to the Internet-protocol stack where most of the value is concentrated on the application layer, it is the opposite in the software stack of blockchains. This investment thesis is called "fat protocolls". An even better investment option is BTC because it is money per definition. And with the capped supply and the declining issuance most likely the "hardest" form of money in the sense of austrian economics theory that was ever created.
The conclusion here is: trade the fuck out of these shitcoins and tokens but don't forget to convert the winnings to a hard form of money (BTC).