Tokens/coins with insanely high inflation will not be not profitable ever

[eXtremal]

it should still be profitable but not in the long term. many people are stuck here because it can generate big profits in the short term but it makes many people addicted and try again in this kind of project and in the end they lose all their assets. This always happens in DeFi projects with large APY usually because of that we must choose the project wisely.

[1715238101]

1715238101

[1715238101]

1715238101

[1715238101]

1715238101

[awik p]

If someone enters the market, of course, they want to make a profit. when many people leave the market so that the price dumps, there will be someone who dares to enter the market to buy it until this power increases and there is a bullishness, as if the market moves automatically with machines, namely the thoughts and views of different people. not everyone can read this situation and dare to take action. and finally the ones who dare to step up are the ones who win

[Silberman]

well there is coin that still made up still at least top 20 by marketcap and no use case except for meme and have unlimited supply but still got listed in bigexchange the coin called "DOGE" and their brother "SHIBA"

It’s true there're some coins which have a very high inflation which have reached a huge level of success, however just because a few coins have achieved this it doesn't mean the observation of the OP isn't true, the majority of the coins which are like doge or shiba and which have no use case never amount to anything in this market and as such we need to stay away from them as the losses we can suffer by investing in them are massive.

[kotajikikox]

well there is coin that still made up still at least top 20 by marketcap and no use case except for meme and have unlimited supply but still got listed in bigexchange the coin called "DOGE" and their brother "SHIBA"

lets accept that those coins you mentioned are backed up by Whales like Elon Musk that is why the support and the position in terms of ranking is still ahead against other coins.

but lets also accept that those are manipulated currency that truly hard to support and trust if you truly concern about your investments.

[kojektea]

I remember the P2E coins that were used as rewards from the game only. In my opinion, coins that are used as game rewards will actually experience inflation faster because they are completely useless and have an imbalance between demand and sales. more sales while its use is less so many people are not interested in keeping it.

[cryptoperkele]

This is not only the basis, you should consider a lot of things not only how their token economics works.
This token economics is just a part of identifying how good altcoin but this is still important though, you should identify it first.
There are some projects that their supply is quite low or decreasing or limited, but on some part of their project is not good like no use cases or product, it's still useless.

Sure, but that wouldn't happen because of inflation so it's not related to this. It would happen because it token itself doesn't have good fundamentals. With high enough inflation on the other had (which i was talking about) the token price is guaranteed to drop.

[merekamo]

So, why do they keep coming back to the market? The circular logic is that they want to be listed on an exchange, but the only way to get onto an exchange is to have a high enough volume for the exchange to bother listing it.

However, there is one other reason that this token is being traded, and that's because there are traders who are speculating on its price.

[lumbanrang]

That's very true, tokens with very high inflation will be very susceptible to dropping drastically and that has happened a lot with Defi projects or token memes. Many of these tokens have suddenly increased in price and in the end most of these tokens have become shittokens now.

[Silberman]

That's very true, tokens with very high inflation will be very susceptible to dropping drastically and that has happened a lot with Defi projects or token memes. Many of these tokens have suddenly increased in price and in the end most of these tokens have become shittokens now.

There is a small mistake in what you say, those tokens with very high inflation did not became shitcoins, they were shitcoins from the very beginning, it is just that people ignored that fact because they were watching the price of that coin going up systematically. So they thought that it was a given and that the coin will keep going up in value, but at some point in time common sense has a way to impose itself and once there were not enough people to keep pushing the price up then a collapse followed almost immediately.

[Eternad]

At present the competition in the market is very tight, the crazy thing that must be done by a new developer is with a pump of up to thousands of percent, this will be trending and then they motivate in the Twitter, Telegram, Discord and so on, when there is a natural pump by users, slowly they are slow selling and finally the coins or tokens die.

When the price is due to hype better sell it when already in profit. No matter how high inflation is when we know how to handle our money we will be able to have a profit depending on our strategy. We can have profit when we’re able to get coins before the hype is over and invest in again in other coins that already have proof of success in the long run or is able to recover even the market is in bear season. We need to adjust our style in trading depending in the market situation.

[Beparanf]

At present the competition in the market is very tight, the crazy thing that must be done by a new developer is with a pump of up to thousands of percent, this will be trending and then they motivate in the Twitter, Telegram, Discord and so on, when there is a natural pump by users, slowly they are slow selling and finally the coins or tokens die.

When the price is due to hype better sell it when already in profit. No matter how high inflation is when we know how to handle our money we will be able to have a profit depending on our strategy. We can have profit when we’re able to get coins before the hype is over and invest in again in other coins that already have proof of success in the long run or is able to recover even the market is in bear season. We need to adjust our style in trading depending in the market situation.

It’s very easy to suggest to take profit after the hype but it’s really hard to predict when will the hype is over when you are trading a certain token that is currently on hype because your emotion will cloud your decision to take profit early since you will be greedy to earn more and missed out possible profit.

Taking profit when your investment reach a certain profit percentage regardless whether the hype is over or not is the best indicator to take profit so that your decision will not be affected by emotion if you have a clear goal.

[Silberman]

At present the competition in the market is very tight, the crazy thing that must be done by a new developer is with a pump of up to thousands of percent, this will be trending and then they motivate in the Twitter, Telegram, Discord and so on, when there is a natural pump by users, slowly they are slow selling and finally the coins or tokens die.

When the price is due to hype better sell it when already in profit. No matter how high inflation is when we know how to handle our money we will be able to have a profit depending on our strategy. We can have profit when we’re able to get coins before the hype is over and invest in again in other coins that already have proof of success in the long run or is able to recover even the market is in bear season. We need to adjust our style in trading depending in the market situation.

It’s very easy to suggest to take profit after the hype but it’s really hard to predict when will the hype is over when you are trading a certain token that is currently on hype because your emotion will cloud your decision to take profit early since you will be greedy to earn more and missed out possible profit.

Taking profit when your investment reach a certain profit percentage regardless whether the hype is over or not is the best indicator to take profit so that your decision will not be affected by emotion if you have a clear goal.

This is true, which is why in my opinion the best thing that we can do once a coin like that goes up in value at a fast rate because of its hype is to sell enough coins so we recover our original investment, this way even if we made the mistake to hold our coins once the price dumped all the way to zero, you will still lose nothing as you would have recovered your initial investment, meaning that you will be able to take better decisions as you will no longer have to worry about losing any amount money.

[JangoUnchained]

Aside from them having no use cases...

* Price of one token will automatically decrease when there's a flood of free tokens getting into markets and scarcity of the token decreases.

* Even if you look at it from the point where your bag wouldn't necessarily lose value as in whole, as it too is increasing with the circulating supply there's one thing you forget, and that's traders. Traders use altcoin or fiat money pairs to do technical analysis, and it obviously will look bad when the trader sets the targets. That would mean that charters would need to use marketcap graph to find a bullish TA and probably no one would even bother to do that as very few do it now.

* Rebasing as a solution is worst possible as it eats away the whole idea of having high interest from staking in the first place.

So why the hell do they keep coming back on the markets?

Not necessarily, Ethereum is the prime example of that, without any cap of it's maximum supply people still believe in it, and now it already reach more than 122M of total supply, and I believe that many people has made profit out of Ethereum, other example is ADA / Cardano the current circulating supply is 34B, and the max cap is 45B, it is now a top 10 coin in Coinmarketcap. There are many other factor beside coin supply, the maximum or circulating supply is indeed have and effect on token price but it's not that significant.

Ethereum now has a total max supply and it's under millions after the merge was completed, I believe this will make Ethereum to grow higher in price someday, no more worries about unlimited max supply like before, if you can check the amount of max supply on coinmarketcap you will see that it's fixed.

[shinratensei_]

That's very true, tokens with very high inflation will be very susceptible to dropping drastically and that has happened a lot with Defi projects or token memes. Many of these tokens have suddenly increased in price and in the end most of these tokens have become shittokens now.

The price will be decreasing instantly without prevention. So many times token with huge inflation worth nothing. Even some tokens issued by big companiies like axie was also going down so hard.
Early adopters will always dump this token. It's caused by they can earn lots of tokens from staking at the early phase. High inflation token is guaranteed to be a zero value token. This is happening so many times and i have said based on my experience saw that in the market.

[makishart]

However, there is one other reason that this token is being traded, and that's because there are traders who are speculating on its price.

Speculators are always looking for the short term profit from trading anything. I prefer to call them all scalpers rather than speculators. There's nothing to be speculated on the shit scam token like that. The inflation token was just only for the betting purpose.
I never see any reliable inflation token. All of tokens were actually offering huge APY was just turn to be a scam token later after it has been launched to the market.
That's very sad that some people are still expecting a huge gain from there instead of thinking to lose a lot

[pawanjain]

As far as the crypto market is operating there will be such coins which are don't have any potential in the long run.
They might show good results in the beginning but as time goes their value fall over the period and at one point the price will dump to no return.
All of these coins are developed just for the hype. There's no usecase to such coins. Buying these coins will put us in a huge risk.
It's better to buy only the established coins with real use cases.

[Silberman]

it should be. but these kind of tokens usually explode faster with the hype in the beginning, those who enter in the beginning are very lucky because the profit is big but after that we will see this kind of project will go down very quickly even to not worth until the rugpull. I'm more away from this kind of token.

We must remember that when it comes to the markets common sense will not always apply, if people are willing to invest their money in a shitcoin then that shitcoin will go up in value at an incredible speed even if the fundamentals of the coin are flawed, in my opinion it is not worth it to invest in those coins despite the chance of this happening as you simply do not know in which coin that pump will happen or when it will happen, which makes it incredibly risky to invest in those coins if you ask me.

[bittick]

basically all shit coins are much more fluctuative than the other coin in general, this makes them interesting coin for investments since you could quite literally make some good return in short term but as you said it will not lasts long. the economy in these coins are unsustaining, moreover it's just trend that will eventually fade, in few months many of these coins will eventually losing value since they are just shit coins and they are having short life cycle like meme coins in generals.

[Silberman]

We came to the cryptocurrency market to escape the inflation that exists in fiat currencies, but here we encounter assets with inflationary structures. This must be a joke. I can't think of anything else. Any asset that has a supply-demand balance problem will never be profitable. I hope everyone understands this. This is not just a case of the cryptocurrency market. This is something that happens in all economic conditions.

You need to understand that the motivations of each person are different, it is clear that for those which actually believe in the technology behind bitcoin and the principles which support its high value, a high level of inflation and no limit at all in the amount of coins that are going to ever exist is without a doubt a dealbreaker, but for those that have come to this market thinking only about the profits they can get then something like this is not really a problem, and quite honestly they do not care as long as they can get profits with those coins.

[Silberman]

Offering fake promise like big reward in a short time was just another scam sign. You call it common but in crypto some projects where offering more than 1 millions percents of APY for the early adopters. I never found this anywhere and that's only in the crypto. Even HYIP was not also offering something big like that. that's definitely bullshit man. Inflation is a very bad thing even so many countries were in the crisis due to the inflation,

This is what happens when people that do not know anything about investing come to this market, even something as small as 0.5% per day is almost impossible to accomplish, the number may look small but over a whole year the profits become quite significant, however since scammers want to attract the most people possible to their projects before they run with the money they offer amounts that are impossible to accomplish, and in their naivete people believe they have found a gold mine instead of thinking that it is impossible for anyone to give those huge profits away.