There are some really great ERC20 token ideas out there, genuinely.
However, without a sufficient and sustainable business plan, they will bankrupt.
Simply relying on the tokens that these creators are holding and then selling them off later to fund their endeavors won’t cut it.
Also, making it imperative for the tokens to be used in an ecosystem where there is no demand (i.e., projects that launched have zero demand by default like any other new company) almost dooms it to failure because people only make adaptations like that for shit that’s already popular.
We’re at a point in blockchain where the ideas themselves are not shit necessarily, but the method of funding in the space is unsustainable to a large extent.
That’s the true existential threat in my opinion right now.
We’ve seen this in a small way with the massive sell-off of Ethereum by a lot of these projects.
To be frank, I also suspect that this is another major reason for the devaluation of tokens in this space as well: Projects that had a massive holding of their own token supply more than likely have been selling that token off in the markets in order to ensure that they can still remain solvent / functional as a business and pay their employees (assuming that their intentions are still to develop a viable project).
Again, there must be a sustainable business idea if any of these projects are wishing to survive in the long-term.
I will write up a whitepaper very soon (which will be launched on the website), that will dig into the unsustainability of these projects.
This is not FUD, this is just something to be aware of as an investor. Don’t get emotional about it.
Just read what I’m going to publish with an open mind, ask yourself if what I’m saying may potentially apply to your favorite project, and if it does, make adjustments for yourself accordingly (disclaimer: up to you; not financial advice).
That’s the nature of investing.
Amazon has been a stellar investment in the last 3–5 years. In 1999/2000, it wasn’t.
There’s no reason for you to sacrifice your bank account for the sake of any project in this space. You lose no points if you realize that you may have been mistaken about the profitability of a particular investment.
If you want to win, you have to attempt to detach your emotions form things and just look at the facts and move accordingly.