Inflationary ecosystems in Cryptocurrencies

  • Firstly, the intrinsic valuation of your tokens drops.
  • When the value of a token reduces, the people’s interest in purchasing it drops, leading to a situation where supply exceeds demand — further leading to price drops; for long-term holders, this compounds into huge monetary losses.
  • Over time, the protocol team may be forced to discontinue the project altogether and render your tokens useless.

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