With a lot of yield farming going on you are going to see a lot of new coins pop up here and there. Most of them named for food for some reason. There are a lot of great coins out there and a lot of projects with potential but there are also a lot of broken promises and coins that are just whitepaper and nothing else. This is why I think any coin that is not meant to be a store or value like bitcoin is needs a product or running application to back it up.
The Leo Example
Leo is a good example as it has a working application where the coin can be used and the coin has value. You can use the coin to increase voting power and buy ad space at the top of the page. It pays dividends and has defi now. There is also a market place. There are lots of perks for Leo. Regardless of the price of the coin the site works and you can use your coins at any time. This is the standard for a coin, if you are going to mint one there should be an application that runs with it or else people will just make coin after coin and a lot of people will lose a lot of money.
Bringing Money In Or Backing An Asset
A product or application needs to do one of two things for a coin (preferably both): it needs to bring in money or it needs to be backed by assets. It may sound funny but if you have been in crypto for awhile you will see a lot of businesses run on blockchains that have no plan to bring in money. This has been tried by a lot of people and while I respect the idea to be crypto only it doesn't work at this stage. Maybe in the future when you can get crypto in and out easy it will work but for now you need to run your business like a business. If you have money coming in you can add a lot of value to your coin and make sure you are fine during bear markets.
The other thing that you can do is have an a coin backed by an asset. For example there are coins that are backed by gold or real estate. This makes sure the coin will always have value as it is backed by something with its own value. If you can do both of these you will have a product that is strong in the market.
Bitcoin Is Different
Coins like bitcoin are different as they are meant to be assets that you hold like gold. Bitcoin in itself is the product and with its deflationary properties it is a good asset to have in the long run if you believe in crypto.
If you are going to make a yield farming product or make a coin please have a product or application behind it. It doesn't need to be 100% but a working alpha or beta should be up before the coin is out and it should work with the coin.
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Why food? Rumor has it that Bitcoin was created while ingesting Sushi. True story.
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lol makes sense.
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Interesting read it was. It is important for crypto communities to begin to create usecases for their coins/tokens if mass adoption must occur. The common man there wants to handle something tangible as a worth of his digital asset. Just as it applies to Hive blockchain. The communities with tokens must create their usecases and allow HIVE stay as a base token.
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The more usercases the stronger the coin.
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