In a little time, I have spent in the eco-system, I have learned that the crypto market is generally driven by trends. Earlier this year IEO looked like it will be the major trend of the year but then came BOMB …Although the BOMB token was not the first deflationary token, unlike EQUAL which has been existing since 2018, BOMB came with a lesser supply and a high deflation rate. The Success of bomb has brought about a myriad of deflationary token with some already doing well in the market as we speak.
Deflationary tokens/coins ortherwise known as self-destructive currencies refer to crypto asset that tends to reduce in total supply with each transaction based on a pre-established deflation rate. Irregardless of the success some of this self destructive tokens has made in the crypto market,nevertheless, there is a threat imminent in the distribution measure applied by these deflationary coins. Most of the recent deflationary coins i.e blast, burn, incinerate, ethplode and the rest yet to come, adopt an airdrop means of distribution in which airdroppers are to receive minute amount of tokens with the notion that the small supply/deflationary nature of the coin will bring about notable performance in the market. Now the problem lies in the fact that even before the distribution of this token via airdrop they start trading on exchange and literally become puppets of the developers.
Isn’t this the origin of centralization in the crypto space? the idea of holding an ICO/IEO or airdrop distribution was designed to keep projects decentralized by widespread distribution of nodes and also prevent market manipulation which can arise with one entity holding on to a majority of the token supply. Today this traditional means of token distribution has been ignored by the developers of this trendy deflationary tokens, we also see a host of them with zero use case being launched into the market on a daily basis. My question is if the airdrop tokens are not distributed as at when they get listed on exchanges and no ICO,IEO or ITO was held then who own the tokens trading on the exchanges (mostly DEX)?. Its also sad that by the time the airdroppers finally receive their tokens for the little task they engaged in to boost the publicity of the project, the prices on the exchange would be almost dead with greedy developers cashing out and moving on to launch a new one. Today we already have a few of them that have exit scam i.e Claymore, satan token and Gomo.