In the dynamic world of cryptocurrencies, concerns often arise about tokenomics and the potential for market manipulation. One such concern was recently raised by a member regarding DSM tokenomics, specifically questioning the claim that the price of DSC would not trade below $20,000. In this article, we will delve into the intricacies of DSM tokenomics, addressing the concern raised and exploring the robust mechanisms in place to mitigate the risks associated with market fluctuations.
The Concern and Responses:
The member’s concern stems from the common phenomenon in the crypto world where individuals sell their coins below the acquisition price, often resulting in significant losses. DSM’s response highlights the uniqueness of its business model and tokenomics, emphasizing the operational nature of DSM at the time of DSC sale on crypto exchanges. Let’s break down the responses to gain a comprehensive understanding.
- Operational Business Model:
The primary reason behind the widespread sell-offs in the crypto industry is the failure of projected business models. DSM stands out as it ensures that, at the time of DSC sale, its business model is fully operational. Unlike many crypto projects that rely on speculative future value, DSM offers a tangible intrinsic value based on its existing business model.
- Demand for Discounted Service Packages (DSPs):
In the event of a scenario where DSC holders attempt to sell below the acquisition price, DSM’s response anticipates that the demand for Discounted Service Packages (DSPs) will far exceed the supply of dumped DSPs. This creates a natural market balance, as the business model generates sufficient demand for DSPs, absorbing any cheap units available in the market.
- Conversion to DSPs:
DSM’s unique feature prevents DSC holders from converting their tokens back to DSC once converted to DSPs. This limits the incentive for DSC holders to sell their tokens at a loss. Instead, most buyers are expected to acquire DSCs for the purpose of converting them into DSPs, unlocking exclusive discounted deals within the DSM ecosystem.
- Targeting a Broad User Base:
A crucial aspect that sets DSM apart from other crypto projects is its target audience. While many projects focus on the existing crypto community, DSM’s business model aims to reach over 90% of the global population, including businesses and individuals unfamiliar with cryptocurrencies. This broad outreach reduces the influence of a minority attempting to manipulate DSC prices, as the majority seeks DSPs for accessing exclusive discounts within the DSM platform.
Conclusion:
DSM’s approach to tokenomics and addressing concerns regarding market manipulation showcases a unique perspective in the crypto landscape. By focusing on an operational business model, creating a demand for DSPs, limiting the ability to convert back to DSC, and targeting a vast user base, DSM has designed a resilient system that mitigates the risk of DSC prices dropping below the acquisition cost. As the crypto industry evolves, DSM’s commitment to real-world utility and inclusivity positions it as a noteworthy player in the quest for sustainable and secure tokenomics. https://endless.cash/dsm
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