Crypto Ocean

2023-03-24 16:32:01 Tokenomics: what, where, and how?
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There have been requests to break down such a concept as "tokenomics." I heard you. Enjoy reading!

A combination of "token" and "economics," tokenomics is a general term to describe the supply and demand characteristics of crypto-token. This includes how and how much token is mined or created, how it is released, how it can be used, and how it is distributed. These elements determine the future prospects of the token and whether it will have a sustainable long-term development.

An example of token allocation from Arbitrum Tokenomics:

• 17.53% is allocated to Investors
• 1.13% is allocated to DAOs in Arbitrum Ecosystem
• 11.62% is allocated to Individual Wallets
• 42.78% is allocated to DAO Treasury
• 26.94% is allocated to Team and Future Team + Advisors

For long-term development, developers seek to implement an incentive mechanism to reward those who support the project and participate in its activities (Individual Wallets). This incentive mechanism can range from mining to stakes, liquidity rewards, and more. Whatever incentive mechanism is used, it is usually designed to work with the protocol so that participants actively engage with it as well as act with integrity. For example:
• Swap (exchanging one coin for another),
• adding liquidity to the pool,
• performing quests,
• buying/selling NFTs, etc.

Developers also pre-determine the supply of tokens, which can also have a huge impact on the price of a token. When a token is created, the project usually does not release all tokens to the market at once - a market filled with a bunch of tokens will negatively affect the price. So developers make a plan for how many tokens there will be and how they will go into circulation. For example, the total stock of bitcoins is 21 million coins, but they are slowly being released into circulation over time through mining.

Key components of tokenomics

Tokenomics includes several important factors that affect the value of a token both at launch and over time. Let's take a look at some of the key components that affect tokenomics.

Token supply
A simple supply and demand curve is one of the most important aspects of tokenomics. One of the reasons demand for bitcoin is so high is because there is a finite supply of bitcoins. The total supply of bitcoins is 21 million coins, which is why it is called "digital gold. Its finite supply creates a scarcity that theoretically drives demand.

Token Utility
If you have a token, how can you use it? The answer to this question can determine whether your token becomes a mainstream token or if it quickly loses value. The ability to develop a token that has reliable use cases determines whether there will be demand.

Token distribution and vesting periods
When a token is launched, its creators must determine how it will be distributed. It is common practice for developers to allocate tokens, but too high a percentage can make the public wary of a pump-and-dump scheme. Many tokens are also allocated to venture capitalists and other investors. Often for both venture capitalists and developers, vesting periods are set for tokens, meaning they are locked up for a certain amount of time to avoid selling out. The goal is to avoid a large number of tokens suddenly appearing at the same time, which lowers the price.

Token Burning
For tokens with no total supply limit, token burning is used to prevent inflation. Token burning removes tokens from circulation and can be scheduled or indefinite. Binance burns its BNB token quarterly, but Ethereum burns a portion of the tokens sent as a transaction fee. Burning tokens reduces the circulating supply, which hopefully supports demand and preserves the value of the tokens.

Q: In one of the following posts, we planned to analyze such a thing as AirDrop and how you can earn money with it. Doing?

Definitely a must do -
No, I already know about it -

Crypto_Ocean Open / Comment

2023-03-24 12:40:56 Morning market conditions:

The market is on the plus side today, most of the alts are green. BTC is now trading around $28,300, ETH is trading above $1,800

Bitcoin dominance: 47.41%;
Fear and Greed Index: 61 (greed);
Altseason Index: 27;
Market capitalization: $1.15 trillion.

Crypto_Ocean Open / Comment

2023-03-23 20:56:09 How the banking system works:

- You owe me $20.
- I have $10, I'll owe you another $10.
- And you owe me $20.
- You keep $10, I'll pay you back another $10 later.
...
- We're even

Crypto_Ocean Open / Comment

2023-03-23 17:26:04 How to conduct your own analysis? | Part 2
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We see that you liked the first part of the DYOR guide. That's why we prepared the second part especially for you. Read, learn and implement in your work.

The post is quite lengthy, but you are advised to read to the end!

Team
As a rule, the main members of the team are listed on the project website. And from there you can find more information about them. It is important to assess the team from a personal perspective, their social networks, the background. Are they interested in the development of the project itself or more focused on fundraising and token development.

Keep in mind that team members never write you in a personal message with an offer to buy tokens and directly invest in the development. If they write to you, then with 99.9% probability it is a scam.

Advice: avoid anonymous teams (projects with no developer listed at all).

Project Partnerships
• How many other partners have you already supported?
• What can they do for each other?

It's important to check for feedback from partners on your pages. After all, you can just tag that you are supported by, for example, Solana, but they won't even know about you and your project.

Competitors
• What competitors do you already have on the market?
• How much demand for your competitor's technology is there, is it in demand?
• What are the advantages of the technology of the project you are considering?

You need to assess the potential demand and quality of the technology by comparing it to the competitors.

Metrics and Tokenomics
It is necessary to understand what kind of token will be available for sale on listing, its unlocking and vesting period.

It's important to understand:
• What is the token for, its function?
• In what areas of the project can it be used?
• To whom and how are tokens distributed?
• How many tokens are there in total?
• How many tokens belong to a team?
• How many sales were there in Seed- and Private- rounds?
• At what prices did they enter in these rounds?
• What are the terms (lots and westings)?
• How many tokens were distributed to the community?
• How many tokens will be used for rewards?
• Publik Sale plan.
• What network does the token support?

After that, we need to compare this data with competitors' projects, so we can assess the potential for growth. After studying all of the above, we can make a decision about investing.

Important: it must be a Utility token. There are projects where the token is just a "phantom" and does not affect the development of the project at all.

The token model can be inflationary or deflationary. The inflationary model is when new tokens are constantly appearing in circulation. With this model, the project must necessarily have a mechanism to "burn" tokens, but it is best when it initially goes on a deflationary model. A deflationary model is when the number of tokens in circulation decreases, creating a deficit, thereby driving up the price.

A resource to track where the project trades and its trading volume is Coin Gecko.

• The trading volume gives an idea of how "active" an asset is and whether it has enough liquidity. If some token is trading with no liquidity at all, then medium or big players can easily influence its price.
• The sites on which the project was released, also gives some useful information. For example, if a project appears on CoinList, it may indicate that the project is not bad, because CL does not list all sorts of "slag". Before release, the project is carefully checked to detect flaws, the presence of which may affect the reputation of the site.

BUT launching on a good site does not guarantee to get a dozen X's.

Crypto_Ocean Open / Comment

2023-03-23 14:48:32 Telegram users can now transfer USDT (TRC-20).

USDT has been added to the @wallet bot on Telegram. Now you can send USDT to a friend on Telegram with zero fees. However, a fee of 2 USDT will be charged for withdrawing USDT to a wallet such as TrustWallet.

  The problem is that the wallet service is custodial, meaning it can ban your account unlike traditional wallets

Crypto_Ocean Open / Comment

2023-03-22 20:21:25 TOP-25 assets by market capitalization

BTC - 18th place

Crypto_Ocean Open / Comment

2023-03-22 16:01:15 SEQUOIA CAPITAL CRYPTO PORTFOLIO

In yesterday's post about DYOR, we wrote about fund analysis. Here is one of the big funds that only participates in strong and promising projects.

Sequoia Capital is a legendary venture capital fund that invests in startups from a variety of industries. However, special attention is paid to sectors:
Energy
finance and financial services
healthcare
medicine

The company was founded on November 1, 1972. The funders are Aadit Palicha, Don Valentine and W. M. Coughran.

The fund's most significant investments by year:

1970s-1990s: Apple, Google, Nvidia, Webvan.
2000s: Airbnb, YouTube, ServiceNow, Unity Technologies.
2010s: 23andMe, StarkWare Industries, Klarna, Nubank, Snowflake, WhatsApp, Meituan, Dropbox , ByteDance.
2020s: BitClout, Bolt, FTX, Wiz, Loom, Shein.

It is important to understand that Sequoia is not one fund. A fund for Israeli startups, Sequoia Capital Israel, was created in 1999. Also, Sequoia Capital China was founded in 2005, followed by Sequoia Capital India. And the main fund, Sequoia Capital, mainly invests in American companies.

Sequoia Capital China is currently raising about $9B for 4 new funds that will focus on supporting fintech and crypto startups in China.

The first investment in the cryptocurrency sector was made on October 21, 2013 in the BIT Mining project.

Cryptocurrencies and blockchain are far from the fund's main investment area, but they invest in this sector on a regular basis.

In the new infographic you can check out Sequoia Capital's crypto portfolio.

Crypto_Ocean Open / Comment

2023-03-22 12:20:58 Morning market conditions:

The market is on the plus side today, most of the alts are green. BTC is now trading around $28,200, ETH is trading above $1,800.

Bitcoin dominance: 47.3%;
Fear and Greed Index: 62 (greed);
Altseason Index: 27;
Market capitalization: $1.15 trillion.

Crypto_Ocean Open / Comment

2023-03-21 19:35:00 Good news for Bitcoin miners as cryptocurrency rally boosts earnings!

Hashprice, which measures how much miners earn based on a number of factors, is up 36% compared to March 12, at $0.08 per terahash

Crypto_Ocean Open / Comment

2023-03-21 16:34:00 How To Do Your Own Analysis?
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Friends, we have a lot of newbies who are just starting out in cryptocurrency. So I decided to make a post about how to do your own analysis of projects. In other words - DYOR (Do Your Own Research).

One post will not reveal in details all the aspects we need to take into account when analyzing. I plan to do a second post like this, but it will depend on what assets you show under this post. It's up to you.

Below we break down the main metrics for DYOR.

Project website

On the website, you will always be greeted with a brief squeeze of the project. Be sure to read the white paper to learn all the basic details:

• What is the project?
• What are its benefits?
• What opportunities does the project offer?
• The project roadmap.

When analyzing the roadmap, pay attention to whether the project is on track. If it is lagging behind, it indicates some difficulty in implementation.

️ Funds

Funds are analyzed to see who is acting as the guarantor of the project's success?

It is important:

• Which foundations have already supported the project?
• What successful cases do these foundations have?
• Will the funds be interested in further development of the project and its token?

Having good funds "on board" increases the likelihood that the launch will be successful and the project will have a better chance of getting support from new investors in the future.

A resource for fund analysts and where they invest is Chain Broker

Community and Social Media

You need to gauge the excitement around the project and audience engagement.

Important:
• How active the project's social networks are: Telegram, Twitter, Discord, Medium, GitHub, and so on.
• How involved is the team in maintaining social networks?
• Ambassador Program. Is it active or does it only have a name?

When analyzing social networks, you need to assess not the number of subscribers, likes and reposts, but how active the audience is among themselves. You can write any question in the discord chat and see how quickly you get an answer.

Also, importantly:
• Who is doing the reposts? If they make them "real people" and not bots it is a definite plus.
• Who among the major projects and celebrities is a Twitter follower.

In order to keep track of who is subscribed to the most "important people" and projects, there is a
special resource - CoinGuru.io

DYOR is not the easiest topic for a newbie. Should I do the second part of the post?

Yes -
No -

Crypto_Ocean Open / Comment