We need consumer products to attract active liquidity flow

I've recently come to realize that most crypto traders and investors view crypto tokens as stock equivalents of the cryptocurrency world and it's the absolute worst assessment.

Stocks are a greatly limited form of asset, they are not at even the slightest comparable to crypto assets. Certainly, I'm aware that most crypto tokens are fraudcorns built into an immutable code, but that changes nothing really, especially when we consider that the reality of most crypto tokens being shit is because we view them as we view stocks and generally, traditional assets and money.

The average stock investor chases after capital gains off hype and dividends payments. They make their gambling bets on stocks based mostly on speculations and out of flights to hedge against inflation.

This puts stocks in a box, where they can remain stagnant for years due to passing hype to new shiny stocks because at the end of the day, it's always about the latest mover. The reality is that market value becomes a factor of what the latest news report says, giving room to manipulation and loss of money and other times overvaluation occurs as desperation and greed sets in resulting in FOMO buying.

It increasingly matters less if people are buying for the long term or the short term, because the industry is mostly influenced by media coverages.

Consumer products and liquidity

It's no news that the cryptocurrency ecosystem has leaned heavily on speculation just as stock investors are, it has proven to be unhealthy. Even our popular market circles are speculation-driven, this is why we always have people second-guess if it will happen.

“This time is different” never really gets old, it's the best evidence of the shit-market ideologies we've built around the ecosystem.

It's not long-term good for crypto, eventually we'd have to move from speculation in market circles to defining trends because that is what crypto is all about, the ability to influence economies in real time to achieve the best outcome for everyone.

This does not happen without a shift to build for revenue via prioritising the development of consumer apps. The volatility of crypto is not necessarily because the market runs 24/7 but because liquidity is actually too concentrated to individuals and institutions whose aims are to shake you out of your positions and make money in the process.

Consumer apps create organic liquidity flow that isn't after making profits from trades. This sort of liquidity strengthens the market because not only does it make it more liquid, it also makes it difficult for market makers or institutional traders to greatly influence the trend of the market.

Crypto is an economic tool, we ought to view and use it as it was designed. Rather than chasing capital gains, our focus will have to shift towards using this technology to make a broad impact, building solutions that result in massive economic value generation.

Stocks are centralized companies’ shitcoins and hold no ability to direct the economy. Crypto on the other hand is built for just that. Most people think that tokenization will bring liquidity but if you really pay attention you'd realize that it won't bring the kind of liquidity we hope for.

As one that has previously been of the opinion of “massive liquidity” inflow from the tokenization of everything, it is important to clarify that despite the very close reality of most things being tokenized, the liquidity inflow will not have the effects we will hope for.

The ecosystem hopes for liquidity that pumps their bags but tokenizing wine bottles will not bring liquidity to pump your bags. What will grow and strengthen any ecosystem is consumer products that attract normies to a chain, protocol or ecosystem.

It's all about getting that volume that's purely “spending” transactions.

Posted Using INLEO