Adelanto, California Sep 29, 2021 (Issuewire.com) – As the cryptocurrency markets roaring back to life throughout 2021, we’ve seen a resurgence of interest regarding investing in the fledgling industry. Many retail investors now stake their claim on exciting upcoming projects, hoping to secure a financial windfall on the backs of this emerging financial revolution. However, while many projects in the industry deliver on their promises of cutting-edge functionality and lightning-fast payments, there are several ways in which an otherwise promising project can go awry via unfair launch parameters. This phenomenon happens intentionally and otherwise, much to the dismay of potential investors. So, what makes a project fair launch, and how can cryptocurrency teams and investors spot these potential project shortcomings? Today we’ll examine how LunaChow, a highly committed upcoming cryptocurrency project, leverages its powerful tokenomic structure to avoid these industry pitfalls.
The first and most common challenge of ensuring a fair launch for a cryptocurrency involves the token’s intrinsic economic structure. Commonly referred to as tokenomics, the initial distribution of tokens plays a large role in the subsequent incentive structures that govern user action over the long term. If a project allocates too many tokens to a certain category of user, the token’s viability as a means of payment can break down completely. Additionally, if a project release too many tokens at launch, there is a risk of runaway inflation or the public perception of failure. To counteract these potential threats, many projects burn tokens at the launch or periodically to deliver value to shareholders. LunaChow leverages this approach in a unique way. By burning 99.9% of the initial token supply, LunaChow fairly and immediately delivers years-worth of value to all token holders.
The dreaded “rug pull” exists as another looming threat to potential investors. Commonly used to malicious actions undertaken by the team or private investors of a cryptocurrency project, the term “rug pull” remains an apt description for the painful feeling experienced by far too many industry participants. In some cases, the project’s team liquidates their allocated tokens on the open market far too early. Often paying nothing for their allocation, this represents a betrayal of fiduciary responsibility. Alternatively, private sale investors often receive allocations for discounted prices, allowing them to sell their tokens at a profit earlier than the average investor. Thankfully these scenarios grow increasingly rare thanks to projects like LunaChow, which is rooted in transparency. The LunaChow tokenomics allocate zero tokens to the team of private sale members. All LunaChow tokens are sold via the public sale – with every investor starting at the ground floor, LunaChow demonstrates the very definition of a fair launch.
Finally, any investment requires liquidity to remain viable. Without a willing counterparty, an investor may well end up the embarrassed owner of a white elephant! Some cryptocurrency projects allocate a paltry number of tokens for liquidity, resulting in a thin market and high price volatility. While markets intrinsically experience ups and downs, such volatility can spook initial investors and spell disaster for projects still navigating the choppy waters of their initial launch. LunaChow avoids this pitfall by allocating a significant portion of LunaChow tokens to liquidity after the historic token burn. By approaching liquidity in this way, LunaChow ensures deep liquidity for initial investors and avoids much of the erroneous volatility associated with suboptimal tokenomic structures.
The LunaChow core values of transparency, commitment, and collaboration shine through in its tokenomic structure. LunaChow effectively removes any incentives that would otherwise harm investors and stakeholders by facilitating a truly fair launch for all investors. This approach demonstrates the shift towards integrity currently occurring in the cryptocurrency industry. As retail investors demand greater efficacy over their investments continue to grow, LunaChow facilitates inclusion and community governance, backed by a fair launch and thoughtful tokenomic distribution. The LunaChow platform represents an excellent opportunity for any individual seeking greater portfolio diversity without compromising project integrity.
Contact Person: Mike L.
Designation: Business Development
Source :LunaChow LLC
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