Valuing the potential of a cryptocurrency project can be systematised. This systematisation is called evaluating a project’s tokenomics (a portmanteau of token and economics).
Using tokenomics, any crypto project can be analysed to determine what a future price will likely be achieved over a given timeframe. It is also possible to rank cryptocurrency projects by quality using a tokenomic framework to assess where is likely to be best to invest your capital.
In this article, I will examine three tokens from a tokenomic perspective, Bitcoin, DefiChain and Dogecoin. These tokens represent a spectrum from best to worst in terms of tokenomics.
There is more to investing than pure tokenomics; however, beginning with tokenomics is a great place to start selecting which projects are worth investigating further versus which ones to ignore.
Let’s start by examining the underlying assumption of tokenomics, a concept everyone already implicity understands; the law of supply and demand.
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