Why Most New Investors Misread Token Economics — And How to Get It Right
The Hype Trap Every Beginner Falls Into Let’s be honest—most people don’t buy tokens after reading whitepapers. They buy it because someone tweeted, “Next 100x gem.” Getting caught up in the excitement is easy, especially when early investors post screenshots of massive gains. But beneath that adrenaline rush lies the backbone of any crypto project: its token economics. Token economics (or “tokenomics”) is basically how a project designs , distributes, and sustains its tokens. It’s the invisible engine that keeps the project running—or makes it crash. New investors often overlook this, treating tokens like lottery tickets instead of understanding what drives their value. Scarcity Isn’t the Whole Story One of the first mistakes new investors make is confusing scarcity with value. Many projects advertise limited supply as their key selling point: “Only 10 million tokens ever!” However, scarcity only works when people actually need the token. Think of Bitcoin—it’s valuable not just beca...