Projects without a “revenue model” cannot sustain coin holders (stakers) or promise earnings within the ecosystem. As a result, they are forced to constantly change hands in terms of price and continuously spend money on marketing. After a while, the market maker (MM) liquidates their holdings to avoid losing all their money and abandons the board. This happens because, after a certain point, they can no longer find buyers at high prices and are forced to sell at lower prices, which further drives the prices down.
Projects with a “revenue model” will attract significant interest from institutional investors. The SEC's approval of ETH staking is very important.
What I mean is this: Projects without “TVL” on their network or without a revenue model are always at risk of a rug pull or carry significant “risk.”
For this reason, I have decided to stay away from WEB3 and meme tokens. I will also exchange the ones I currently hold once I break even.
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