The term tokenomics describes the economics of a token, that is, the factors that influence the use and price of a token, its creation, distribution, demand, supply, incentive mechanisms, and burn schedules. Well-thought-out tokenomics is the key to the success of most crypto projects. It is extremely important to evaluate it before making an investment decision.
After the collapse of Terra, Celsius, and more recently 3AC and Voyager, a pattern is starting to emerge. It turns out that the high yields of cryptocurrencies and algorithmic stackcoins are not actually sustainable in a bear market (to anyone’s surprise), and as a result, cryptocompanies whose value proposition meets the above criteria find themselves in a desperate position, not a group, but echoing their “Money for Nothing” hit. Here’s a list of cryptocurrencies you should probably avoid: