‘Existential’ token problem seen as supply outpaces value creation
WhatThe surge in token supply is causing concerns about the long-term viability of the crypto market, as it may break the link between fundamentals and price.
WhyThis issue is seen as 'existential' because it threatens the core model of the crypto market, which relies on the relationship between token supply and value creation.
SignalThe increasing token supply is a signal that the crypto market may be experiencing a period of over-issuance, which can lead to decreased returns and a loss of investor confidence.
TargetThe target of the crypto market's model is to create value through innovation and adoption, but the surge in token supply may be diluting this value and making it harder to achieve.
RiskThe risk of the crypto market's long-term viability is high if the issue of token supply outpacing value creation is not addressed, potentially leading to a collapse in investor confidence and a decline in the market's overall health.