Why DSC Won't Plummet Below $20,000 and How DSM Plans to Mitigate Risks
In the fast-paced and ever-evolving world of cryptocurrencies, concerns and skepticism often arise, especially when it comes to tokenomics. Recently, a member raised a pertinent question about DSM tokenomics, expressing doubts about the claim that the price of DSM (DSC) won't dip below $20,000. This article aims to shed light on the issue, exploring the intricacies of DSM tokenomics and how the project plans to address the common crypto phenomenon of coins being sold below their acquisition price.
Understanding the Concern:
The member's concern stems from a quote on the DSM tokenomics page, which asserts that those who purchase DSC from crypto exchanges won't rationally sell them below the acquisition price, ensuring that the price of DSC remains above $20,000. This assertion may seem optimistic, considering the prevalent trend in the crypto industry where coins are frequently sold at a loss.
Addressing the Issue:
DSM acknowledges the common occurrence of selling below the acquisition price in the crypto space. The primary reason behind this trend, as explained by DSM, is the failure of projected business models in the crypto industry. Over 90% of crypto-related businesses either turn out to be scams or lack viable business models, leading to disillusionment among investors.
DSM's Unique Position:
DSM distinguishes itself by asserting that its business model is fully operational by the time DSC is initially sold on crypto exchanges. Unlike many other crypto projects, DSM emphasizes that DSC buyers are not investing in future projections but rather accessing the current intrinsic value built on the operational DSM business model. This key difference is expected to contribute to a more stable and less speculative market for DSC.
Mitigating Risks:
To address the concern of potential dips in DSC prices, DSM outlines several strategies. Firstly, they anticipate that the demand for DSM Points (DSPs) will far exceed the supply of dumped DSPs if such a scenario were to occur. The business model is designed to create sufficient demand for DSPs, swiftly absorbing any cheap DSPs in the market.
Furthermore, DSM predicts that most DSC buyers will not be looking to resell DSC but rather convert them into DSPs. This conversion is irreversible, reducing the likelihood of DSC holders dumping their tokens. The intended purpose of DSC, according to DSM, is not for trading but for redeeming products and services sold within the DSM ecosystem at exclusive discounts.
Expanding Market Influence:
One distinctive advantage highlighted in DSM tokenomics is the broad target audience. Unlike many crypto projects that focus on a niche market, DSM aims to capture over 90% of the global population, including businesses and individuals unfamiliar with cryptocurrencies. The majority of these buyers will acquire DSC not for speculative trading but to access discounted deals within DSM.
Conclusion:
In conclusion, while skepticism is common in the crypto space, DSM presents a unique approach to tokenomics. By emphasizing a fully operational business model and targeting a global audience beyond the crypto community, DSM aims to mitigate the risks associated with selling below acquisition prices. The strategies outlined by DSM, including the irreversible conversion of DSC into DSPs and the broad market influence, paint a picture of a project prepared to navigate the challenges of the crypto market with resilience and innovation. Only time will tell if DSM can live up to its promises and redefine tokenomics in the crypto landscape. https://endless.cash/dsm
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