Why do some cryptocurrencies have a surplus of tokens?

3 answers

• Dec 18, 2021 · 3 years ago
  Some cryptocurrencies have a surplus of tokens due to their initial coin offerings (ICOs) or token sales. During these events, the project team may create and distribute a large number of tokens to raise funds. If the demand for the tokens is not high enough, or if the project fails to deliver on its promises, there can be a surplus of tokens in circulation.
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• Dec 18, 2021 · 3 years ago
  One possible reason for cryptocurrencies having a surplus of tokens is the lack of a clear use case or utility for the tokens. If the tokens do not have a specific purpose within the project's ecosystem, users may not see the value in holding or using them, leading to a surplus.
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• Dec 18, 2021 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, has observed that some cryptocurrencies end up with a surplus of tokens due to poor tokenomics. Tokenomics refers to the economic design and distribution of tokens. If the tokenomics are not well-planned or if there is an imbalance between token supply and demand, a surplus of tokens can occur. It is important for projects to carefully consider tokenomics to avoid this issue.
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