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The importance of token economics when investing

by Syed Shoeb
, The importance of token economics when investing

Tokenomics and valuation are of utmost importance to investors. Tokenomics takes Token Design as an input and “models” to a mini-economy to understand how this mini-economy will behave and influence the value of your native token.

Looking at the Token Design, investors try to understand their reason for investing in the project. Investors look out for parameters like the size of the market you are targeting, how big the potential is, how you will get traction, how your supply side is modeled, etc. Value of investment increases or decreases on the basis of Token Design.

We have put together an exhaustive guide of questions to tackle investor’s potential.

Token Demand is relevant for an investor to understand how big the market potential for your network is. From a niche market to a trillion-dollar sector, this is crucial in modeling the value development of your token.

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