Macroeconomist calls business models of most altcoins unsustainable
Lyn Alden also noted that the UST stablecoin attracted investors with its high yield, but could not be used as a means of payment
25.05.2022 - 11:10
Vasiliy Smirnov
What’s new? Macroeconomist Lyn Alden said that most altcoins are based on unsustainable business models. She explained that many projects intentionally sell assets at lower prices to make more profits. According to Alden, in such models, after an initial explosive phase of revenue growth, altcoin developers may raise prices. However, this will only work if the asset is in demand for its own sake, not because it is underpriced.
If you make a business selling $20 bills for $10 each, your revenue growth will be massive and your total addressable market will be nearly infinite.But of course it's unsustainable.Many altcoin projects and persistently unprofitable growth stocks, are basically that.— Lyn Alden (@LynAldenContact) May 22, 2022
What else did Alden add? The expert believes that a similar model underlay the Terra project: investors were attracted by the high yield, but the unstable structure of the UST did not allow the asset to be used as a means of payment. The economist added:
“If you make a business selling $20 bills for $10 each, your revenue growth will be massive and your total addressable market will be nearly infinite. But of course, it's unsustainable.”
What happened before? Crypto analyst Michaël van de Poppe spoke about three promising altcoins. He urged to buy Chainlink (LINK), Decentraland (MANA), and THORChain (RUNE) as soon as possible.
Also, analysts at investment bank Goldman Sachs named a condition for the success and viability of algorithmic stablecoins. To do this, the projects need to find a wider application for payments in the real economy. The bank noted that stablecoins fulfill a need of the cryptocurrency market, allowing investors to trade less volatile assets without the difficulty of converting them into fiat currencies.
Telegram 
Twitter Market
The crypto trader outlined a range for buying Chainlink (LINK) at which long-term investments would bring substantial returns
Jun 28, 2022
Business
After blocking Chinese users in 2021, the company’s revenues dropped significantly
Jun 28, 2022
Market
The entrepreneur noted that he will continue to buy the first cryptocurrency if it recovers
Jun 28, 2022
Market
According to Yifan He, the similarity to a fraudulent scheme is indicated by the constant influx of new users while the asset lacks liquidity and value
Jun 28, 2022
Incidents
The department noted that terrorism, extremism, and cybercrime are being financed with digital assets
Jun 28, 2022
Incidents
Representatives of the group also did not confirm information about the creation and promotion of any tokens
Jun 27, 2022
Cryptocurrency rates
-
Bitcoin
$20 356
BTC
-2.4%
-
Ethereum
$1 149.72
ETH
-4.09%
-
Ripple
$0.34
XRP
-4.29%
-
Cardano
$0.47
ADA
-2.88%
-
Solana
$35.54
SOL
-8.55%
-
Dogecoin
$0.07
DOGE
-8.23%
-
Polkadot
$7.35
DOT
-5.88%
-
Litecoin
$52.9
LTC
-6.13%
-
Stellar
$0.12
XLM
-4.07%
-
Monero
$119.2
XMR
-1.86%