A must Read!!! Things you ought to know before investing in any crypto project

in Hive Learners2 years ago (edited)

Hello Hivers, it's a wonderful day here. We all know how the crypto market has been down for some time now but very soon we will enter the bull season (don't really know when) . As the Bull market approaches we will begin to see new crypto project popping up.

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✴️Consider this seriously.

whenever you research a cryptocurrency project you want to invest in,

especially if, IDO, IEO, or Presale are conducted for this project.

When you look at their partnership, you see a lot of venture capitalists.

Please be aware that they are not necessarily a backup but rather the capital for that project.

Avoid getting overexcited.

🛑Their responsibility is to support early-stage project market making.

🛑while also having an agreement regarding when they would withdraw their money.

🛑Keep in mind that they receive admission at a price that is twice as low as the presale, and they make sure to promote the initiative (hence they are called VC because they funded the project from the startup phase)

📍Boom.... it's launch time for The Crypto Project!

When they launch, they'll recommend high-yield Staking Rewards to their community.

This is done to stop the typical person from selling out.

Now This is the point at which crowdfunding starts.

🛑You must be alert at this point.

📝The venture capitalists withdraw their money gradually rather than all at once.

📝The staking reward progressively starts to decline.

📝Gradually, the token's value starts to decline.

📌Your dollar is gained, and they give you their token (of course, they are the ones supplying the token).

📝You will progressively lose your purchasing power while futuristically getting more of their token.

At that point you will start hearing/seeing positive news such as;
• new partnership,
• new Cex and exchange listing,
• new products

These serve to maintain community and keep holders of the token optimistic.

Because of this, it's crucial to consider CRYPTONOMICS as well as TOKENOMICS.

Theres a huge difference between these two

Later, we'll examine that.

If I'm wrong, please cite me, and don't forget to leave a comment and any latest information you may have.

I'm willing to learn.