The current meta of people earning off trading fees is not unlike the NFT royalty boom. Major projects were making upwards of 7 figures a day on royalties at the peak. Volatility drives price action. Both up and down. Being disruptive and able to farm that volatility is critical.
It’s obviously apparent however that when royalties ran dry the major NFT projects essentially stopped trying to drive attention. Many had to find new revenue streams so decided to mint more and more. Which diluted collections. Prices began a downward spiral. History will repeat.
This is why “creator coins” are unsustainable. And anybody that is promoting these as some sort of economic revolution is being dishonest at best. The money being paid to platforms and creators doesn’t just fall from the sky. Any dollar removed from liquidity is a -EV extracrion.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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