I came up with this theory while studying ASICs for mining Alephium, Radiant, Kaspa
1. At the first stage, before the release of a new ASIC, the price of the coin is pumped so that ASICs can be sold at a high price. The payback period of an ASIC at the time of sale is 90 days.
2. Since ASICs are sold much more expensive than their cost, the ASIC manufacturer has money left to prevent the coin price from falling too much. But eventually, with the increase in the payback of ASICs, the manufacturer is forced to reduce the price, but selling ASICs at this stage is profitable.
3. At stage 3, I thought that everything would end, but I was wrong. Using the example of the Kaspa coin, Kasplex KRC-20 is launched. This is an analogue of the classic Ethereum, where various profitable defi products may appear, the purpose of which is to reduce the sale of the coin on exchanges. ASIC manufacturers will earn again
https://x.com/kasplex/status/18331145270401682954.At stage 4, I think there will be an outflow of liquidity, sale of coins on exchanges and disappointment of newbie miners who recently bought these ASICs.
Do you like my theory?
