Tokenomics Analysis & Supply Distribution

[Suba]

Crypto investors often use tokenomics as a tool to analyze the economic foundations, long-term value potential, and the number of users who will adopt a token/coin. Good and healthy tokenomics will attract a community.

Tokenomics is also a tool to determine whether a token/coin is undervalued, preventing investors from being trapped by low prices that lack long-term potential. Several aspects of tokenomics are frequently analyzed by investors, such as:
1. Comparing total supply vs. circulating supply. A low ratio indicates the potential for future dilution.
2. Using Messari or TokenUnlocks to check vesting schedules and assess potential selling pressure in the future.
3. Whether supply will be affected by inflation, burns, staking, etc.
4. Studying token distribution to determine whether tokens are primarily distributed to stakeholders (whether family or the development team), resulting in very little distribution to retail investors. Concentrated distribution should be considered a red flag.

 

[Fire&Rain]

Crypto investors often check tokenomics to understand a coin’s long term value and how widely it might be adopted. Good tokenomics attracts a strong community and prevents people from buying tokens that look cheap but have no future. Looking at supply ratios, vesting schedules, inflation, burns, staking, and distribution helps spot red flags and make smarter investment decisions.