what gives tokens printed from thin air any long term sustainable value?

[anticonformist]

1) Why should tokens that are minted/created at launch by companies and sold to investors/public have and hold any sustainable long term value?
2) Are these tokens meant to be used as future currency in retail/commerce, how?

For example AVAX created from thin air 720,000,000 tokens. Half were sold/airdropped/team allocated etc, the other half will be used as staking rewards to validators, released over decades.

So how many individuals do you think now own 50% of the available supply of tokens (or 100% considering the other 50% is locked for staking) maybe a few thousand rich people? So how is this any sort of fair or sustainable type of currency, should the majority population ever choose to use it for currency. I guess for me it gets back to mining giving value...

Isnt this just the equivalent of somebody releasing "bitcoin 2", and pre-mining 50% of the supply and allocating half to themselves and their team and then dropping it on the market for us to actually buy with our dollars.

Can anyone explain, am i missing something or on the completely wrong page?

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[thedailygrind]

I've wondered this myself. I am looking forward to responses. It would seem that the law of supply and demand would apply. High demand and low supply would increase the price but I don't see what creates the demand from one crypto to another. I can see Bitcoin but almost all the other ones I don't see why one would have more demand over the other.

[cryptoaddictchie]

Can anyone explain, am i missing something or on the completely wrong page?

Those people invested on certain projects like Avax thinks that what they are building will be useful in the future. Considering their making a blockchain that surpass the hindrances of ethereum network might be a good investment.

Yes they are making it on thin air, but those tokens will be useful later on if they utilize the tokens to a very good ecosystem where other firms or company can take advantage of the technology.

[crwth]

Basically, they have the support in which everyone has an agreed-upon price value per token. Those holders are probably believing in what AVAX could do and they are not willing to let go at this price yet. Do you think everyone would have a choice whether the developers dump or not? No, but a lot of them believe in the token. That's probably the reason why it looks sustainable.

It still has something to do with its application in real life as well. If they have it in their road map, then they can be used in retail or something. This leads me to check their website.

Upon checking it, they have a lot of projects that are lineup and could be their goal in the coming years, hence, their approach to future currency. I have seen those information in the link below.

https://www.avalabs.org/why-avalanche

[disconnectme]

You may see it has been created from thin air, but Avalanche platform is offering a service abd people are using it to create value, as long as they are creating value people will attach value to this tokens. Just look at it, for every Avax tokens, there are 10's of useless tokens out there they have value close to zero because they are offering noting of value to the space. I use to question this before but when I realise that it is a matter of value creation and people projecting this platform has potential to offer great value to the space. Look at Uniswap for example and see the great work that the team has done, if it is a traditional platform it would be valued more than its current Market cap

[Timelord2067]

The same can (to an extent) be argued by financial advisors of Bitcoin itself. 

The problem with all Tokens is that they are simply PREMINED - years ago numerous shit coins would pop up having 10%/25%/50% +++ premined coins on the pretext of giveaways or airdrops.  Once the coins listed on an exchange the founders dropped their bags and ran with the profits (and then no dev = no updates, the coins ends up dieing very quickly).  ICO/IEO launches do the same thing, but cut out the exchange when selling the premined Tokens to the masses.

PREMING or ICO's/IEO's are no different to a government printing fiat money and distributing it to the banks.

[jrrsparkles]

There are people who ready to invest on 100% premined coins then why not the team think differently and use 50% as rewards. Basically investors need to stop investing and we can't expect the devs from creating new projects.

[DapanasFruit]

I am sure that you are never alone wondering the same things. First and foremost, maybe we should be addressing the idea that a coin or token  being released to the public is just minted on thin air. Yes, there is some truth to that in the same way that a government can be using its power to print paper money. The minting of something valuable here is hinged on the value of the one behind it...the platform has to perform based on the roadmap so that people or rather the market will be convinced that it has a value in the first place. In most cases, we are here talking on the future scenario and based on that we can evaluate if that platform has the potential to be valuable. I am sure we have seen so many projects that just died a natural death all because they are not focused on providing value hence the market got disinterested and hence pronounced them to be not valuable enough.

[anticonformist]

I dont think you guys are quite getting my point.... Im not arguing that AVAX isn't an interesting new project offering a service etc. Its nothing to do with the TECH. (and remember tech stays new for like "5 minutes")

Im arguing that why should people choose to use AVAX as a CURRENCY when 50% or 100% (available supply) is already distributed in the hands of a few people. There's 8 billion people on the planet, so how's that gonna work as a CURRENCY.

Distribution is everything. What u guys think?

[hatshepsut93]

Centralized supply is part of the problem, but if the tokens themselves were usable, then maybe this system would somehow worked, maybe not always, but still the tokens would be valuable. But they don't have any real uses, the promised platforms never get launched, or if they get launched they get no users at all, and uses like smart contracts, currency, store of value can't compete with established coins like Bitcoin or Ethereum. So, tokens are mostly used just for scamming.

[Ucy]

That's one of the main problems with such projects. The founders seem to have too much power over the network and expect to be seen as decentralized.
Their model is flawed and potentially harmful to decentralization. Sometimes I wonder if they really understand what they are doing and its future consequences

[lixer]

1) Why should tokens that are minted/created at launch by companies and sold to investors/public have and hold any sustainable long term value?
2) Are these tokens meant to be used as future currency in retail/commerce, how?

For example AVAX created from thin air 720,000,000 tokens. Half were sold/airdropped/team allocated etc, the other half will be used as staking rewards to validators, released over decades.

I can't speak on behalf of avax and I do not own any avax myself so that is another topic and if you want to learn more about avax I suppose someone who has avax should answer. But in the general idea why would something that was printed beforehand should worth anything in the future could be answered without talking about one specific coin.

I think it is used because at the end of the day we are in a situation where printed or not, many coins get attention as long as they are decent, we have three coins in my opinion, one is the old ones, the ones that was  created long time ago, two is the new ones that are legit and good, and third ones are new and old scam ones. Finding that second one is hard, even if it was printed beforehand, as long as it is a legit and decent project with future plans that means it could mean a lot as long as there is a reason project finds a way to get people to buy it and make money.

[SquirrelJulietGarden]

Anything is created from thin air won't survive too long. Price is decided by belief of investors, traders, or from control backed by government, central banks.

When belief is lost, price will be crashed and total supply is high or low won't be enough to prevent or halt crashes.

When governments or central banks are collapsed, corrupted, or destroyed in crisis, value of their supported fiat will be lost. Venezuela and their boliva (national fiat) is a good example of a failed fiat.

[beerlover]

I have seen even stable coins worth 1.1+ dollars, they are pegged to 1 dollars and that is what they are worth but they were worth 1.1+ dollars, hell in some algorithm stable currencies we have seen even 20+ dollars which is crazy, paying 20+ times more than what they are worth, all because it was profitable for them to buy, not because they thought it would go up, but because they liked the stake reward it was giving.

So long story short, there is always a worth for something as long as people decide that it worths something. Biggest example is, you said Avax in your example, avax is now worth 50 dollars, which is the proof that we are in a situation where people saw that it was printed, and still willing to pay 50 bucks for each of them. That should tell you something, it is really a huge amount of money and people just find it valuable, it all depends on who will pay how much for it.