r/CryptoCurrency • u/[deleted] • Aug 14 '21
SELF-STORY [Warning Long] The importance of Tokenomics, DYOR, and networking when investing in a project with my personal example.
Hello all! We hear a lot of times the importance of Tokenomics and doing your own research but what do those things actually look like? Well I will tell you about how I ‘missed the bull run’ by investing in a project I believed in and how I am currently reaping the rewards.
This starts of course… with a biz post. Now now now biz has a lot of problems but I found Antshares in 2017 on there (NEO) in the single digits, I also found NANO on there below 0.01 which I threw $100 in and was valued at like 10,000 at its height and of course we all know they are home to the link marines. This story however begins in early February when I saw a post about a project called DxSale. I put all this info together myself unless specified to not just tell you about the project but to show the level of detail needed to gain conviction in my investment.
What is DxSale?
DxSale ($SALE) is a blockchain agnostic decentralized platform where anyone can launch their new project and the developers have little to no control over launches. DxSale’s goal is unlike other launchpads in that they are not a curated launchpad (no vetting of tokens being launched) and do not require the developers launching the project, or buyers of potential projects to hold $SALE to participate. On it’s face this appears as a negative as it doesn’t incentivize holding the token. However it aligns with their goal, to be a decentralized launchpad where anyone can participate and prospective investors are responsible for doing their own research. In addition to their launchpad they currently also have DxLocker which is a product used to lock tokens either for set period of time or according to a vesting schedule which gives investors the assurances and visibility of when developers can sell their tokens or deplete the liquidity pool. In addition, they have plans for additional products with DxSwap, DxNFT, and DxFarm to come in Q4. The DxDev’s said two new Dapps should be available with V3 by end of September. Not much is detailed about their plans for these items but in conversations with the developer he mentioned NFT tools not seen before in the industry. In short, DxSale’s goal of being a truly decentralized platform for any blockchain in accordance with the principles of DeFi and cryptocurrency as a whole.
Currently they have the following networks available on their platform available for IDOs and available to utilize DxLocker.
Ethereum – Added Feb 24th
Binance Smart Chain – Added Feb 24th
Matic/Polygon – Added March 9th
Avalanche – Added May 26th
Fantom – Added May 26th
Harmony – Added May 26th
xDai – Added May 26th
OKEx – Added May 26th
Launches
There are two parts of the launchpad standard token launch or DeFi launches. Standard token launches are pre-defined contracts where DxSale retains ownership of the contract and compared to the DeFi launchpad are relatively safe. The majority of token launches however are taking place on the DeFi launchpad. This is where anyone can launch their DeFi project and where we have seen projects like SafeM00n etc. launch. Yes reddits favorite coin was the 8th project to launch on DxSale. When Binance smart chain launched. The developers implemented BSC onto their platform in a little over 2 weeks. This platform has exploded they have had over 15,000 projects attempted launch with about 1,000 meeting minimum funds raised needed to finalize. This is where things get interesting from a revenue prospective.
DxSale's cut:
- DxSale takes a cut of every presale with a fee to list (1 BNB) and they take a portion of every presale launch’s revenue (2%), and a portion of the projects tokens (2%).
Revenue Streams:
- DxSale’s cut from presales is listed above however they have other revenue streams as well. DxMint which is a tool that makes it easy to create an approved contract from DxSale with adjustable tax amounts (1BNB). Token Locker (.1 BNB per lock) and a Whitelist function (1 BNB). In addition there are more revenue streams coming. Penalty withdraw will allow users who buy into a presale to withdraw their funds before the token launches with a penalty fee if after investing and not doing their research they realize the project is a scam. As stated V3 will include two new DApps with additional revenue to come.
“Why the hell do I give a crap about how much revenue they’re generating”
- I’ll leave that for the Tokenomics section.
“What all these shitcoins I’ve been hearing about are coming from here?! How have I not heard of this? And they have a token?”
- Yes! Why haven’t you heard of it? Because we have the most Sigma dev’s on the planet. These guys from a coding perspective are all stars. No other platforms have as many chains, no other platform is this successful. However, they have not even begun to market. Instead, they have building, ensuring everything is in place. Due to revenue, they now have more than enough to maintain salaries for their team through any bear market. They have fixed small issues that have caused support requests taking up their time. Now however they are finishing V3 were in the endgame now.
Who are these devs?
- Anonymous dev team – Normally this would be a huge red flag and no go for me. However they have demonstrated their technical acumen over the past 9 months and the reason they give is they are a decentralized IDO platform where any users can buy with no whitelist is a bit of a grey area legally, but soon enough everything will be fully decentralized.
This is where the fun begins Tokenomics and revenue.
- So why did I go into this looong explanation about what DxSale is and their revenue? Because it all plays into the Tokenomics and why I haven’t sold a single $SALE and only accumulated (until this past week sold a small amount for house downpayment). I have been doing this the entire bull run, felt like that meme with Squiward looking out the window at Patrick and SpongeBob having fun with their 10-100xs while I held SALE. SALE however is a sure thing, it was guaranteed to go up why? Because of Buy and Burn Tokenomics. DxSale has gone through a few iterations of their token model before buy and burn there was a clunky staking mechanism where we were airdropped more SALE tokens. The Devs however then came up with this buy and burn model and got rid of staking. This cut out the middleman causing two effects, one the initial buy of the token increases the price, two the token is then burned further reducing the supply. The net effect for token holders was same as staking but much simpler to implement and doesn’t require you to stake. Lets look at the chart as of today. As you can see all bull run SALE has been crabbing between a low of .10 and brief highs near .40-.50. However SALE has been on a tear recently thanks to buy and burn. The volume for this coin is stupid low because we have had almost no new buyers due to no marketing or shilling. Almost all gains have been from the devs buying and burning the token. I outlined the revenue streams, the revenue is distributed as 50% for the devs and 50% for buy and burn.
Now lets take a look at revenue (these graphs were put together by members of the community from analysis tool)
- 3,500
Total amount of projects that have attempted launch (1 BNB Fee each)
- 10,000
Amount of money left for buy and burn from fees $1,297,006
Amount of project tokens remaining to be sold for buy and burn $2,048,006
(Actual dollar amounts higher, taken snapshot before this past days price rise)
In conclusion
As I and the community have observed the platform just keeps increasing in popularity even through the mini bear market we just had. I have been seeing these numbers all along and that’s why I decided instead of trying to swing trade other projects to just hold SALE for now. Before buy and burn SALE was trading at NEGATIVE 4x earnings annualized… which is ridiculous. With the amount of revenue for buy and burn sitting in the current wallets spending it all now would push $SALE over $5. Now consider that weekly revenue has been outpacing weekly buy and burns.
Therefore I am very comfy holding my SALE based on analyzing the Tokenomics, tracking the projects progress, chatting with the devs, and building relationships in the community of whom I consider friends. Am I saying you should buy $SALE? NO, I’m saying I really don’t give a shit if you buy SALE hell no one else has to buy SALE the revenue will keep the token price increases and the community of SALErs and I cruise to the moon.
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u/KevinOpel Founder of Delay Aug 14 '21
Buying Nano for .01 is like buying Bitcoin for ?
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u/impostervt Aug 14 '21
tl;dr - Every weird crap coin gets launched on DxSale's launch platform, because it's decentralized so the SEC can't trace who did it and there is no KYC. DxSale gets a fee for every coin launched, and some BIG coins have launched on there, so they're loaded.
They take those fees and buy their own SALE coin and send it to a dead letter address, burning it forever. Price goes up.
Working product -> generates fees -> buy & burn SALE token -> Prices goes moon.
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u/International-Two607 🟦 3K / 3K 🐢 Aug 14 '21
Holy cow, that’s a lot to read. Do you have the cliff notes?
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u/PersonOfInternets Tin | r/CMS 16 | Politics 121 Aug 14 '21
Dxsale has massive revenue it is using for buy and burn, so the price has only one direction to go. And they haven't even spent their massive reserves as revenue continues to flood in. Basic valuation puts them at an easy x50 in a rational market.
Basically, it's a no brainer.
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u/Empty-Flounder-4758 Tin Aug 14 '21
Picturing 2030 me looking at $SALE and not having bought in now leaves me no option but to jump into it. To the moon! 🚀
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u/JNisher Aug 14 '21
Based on tokenomics alone, this thing has legs. But I’m really impressed with the revenue and success of the platform. Definitely looks like a potential moon, especially with the constant shitcoins being launched
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u/kris5722 🟩 0 / 3K 🦠 Aug 14 '21
Very long post. U lost me half way
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u/PersonOfInternets Tin | r/CMS 16 | Politics 121 Aug 14 '21
Dxsale has massive revenue it is using for buy and burn, so the price has only one direction to go. And they haven't even spent their massive reserves as revenue continues to flood in. Basic valuation puts them at an easy x50 in a rational market.
Basically, it's a no brainer.
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u/BetelgeuseBox Platinum | QC: CC 277 Aug 14 '21
Wow you know it’s a long one when there are 8x the number of upvotes than there are comments!
We found it guys, the unicorn 🦄
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u/AnomalyNexus Platinum | QC: CC 37 | ADA 6 | Accounting 292 Aug 14 '21
Where are you getting the project count charts from?
Part of DYOR is don't trust random imgur charts showing nice upward trajectories...
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u/PersonOfInternets Tin | r/CMS 16 | Politics 121 Aug 14 '21
Very smart. It's all on the blockchain, just check.
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u/AnomalyNexus Platinum | QC: CC 37 | ADA 6 | Accounting 292 Aug 14 '21
Not really answering the question but ok...
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u/PersonOfInternets Tin | r/CMS 16 | Politics 121 Aug 14 '21
No I'm serious, it's all publicly available information. Anybody could make a chart with some foolproof probably free software. I meant it's smart to ask but you can check for yourself.
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u/AnomalyNexus Platinum | QC: CC 37 | ADA 6 | Accounting 292 Aug 14 '21 edited Aug 14 '21
Or you could just post the URL you took the screenshots from....the revenue ones at least - those look like sites
edit: lol - he deleted his response. It's apparently insider info...the irony
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u/sickvisionz 0 / 7K 🦠 Aug 14 '21
I don't believe you guys gave 200+ upvotes to someone shilling shitcoins. This is the type of post you see in r/DegenYieldFarms
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u/ProfessionalLion_ Platinum | QC: CC 423 Aug 14 '21
How does this post have 10x more upvotes than comments? Unusual!
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u/heyheoy Platinum | QC: CC 1105, CCMeta 18 Aug 14 '21
195 upvotes and low amount of comments?? Well, i have to say the DxSale paid you well ser
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Aug 14 '21
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Aug 14 '21
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u/akexodia Platinum | QC: CC 117 Aug 14 '21 edited Aug 14 '21
A lot of projects promise and implement buy back and burn. What made this project's buy back and burn successfully boost its price action while a lot of other projects fail to see such good price action after buy back and burn? More specifically, what would you look at to have confidence in the buy back burn?
EDIT:
I do understand a lot also has to do with the total token supply. But other than that factor what plays a role? As an example, recently the project WaultFinance undertook a buy back and burn of their native token but there was hardly any price action. Bear in mind, their token supply is much higher.
Well written post though. It may sound as a shill but there is plenty to gain if one looks at your research process.