LYN Token’s Strategy to Tackle Critical Issues in Crypto Market
There is no shortage of cryptocurrencies on the market, with opportunists and innovators alike, jumping at the chance to be early adopters in the next big thing. It’s important however to understand the tokenomics and the long-term strategy of any given token before investing and supporting it.
In this short article, I am going to breakdown the Lynchpin Token (LYN), its tokenomics and how this project intends to solve a number of the critical problems in the cryptocurrency industry.
Hype vs True Value and Utility
The overall value of a token or coin is defined by trading volume on various exchanges, regardless of the true value that it may provide. Often an ICO will explode out of the gates, only to crash once it hits exchanges as a result of unfounded hype. They purely exist as a pump and dump, or get rich quick scheme and have caused the entire industry’s legitimacy serious damage.
Lynchpin fosters a different approach and aims to provide a superlative cryptocurrency that has longevity and achieves stability in the market so that it can be used a reliable form of payment and storage of value.
The first way Lynchpin bids to achieve this is with real utility so to attract real adopters.
The project aims to create utility by developing several products and services that integrate the LYN token, such as: a debit card, POS machines, and multi-currency wallet.
Furthermore, Lynchpin has partnered with a number of e-commerce merchants that will use the token as the main form of payment within their platforms. Thus LYN offers real value to purchase real products and services.
The second way Lynchpin intends to gain real adopters is by not giving away free tokens, via bounties and airdrops etc. The recipients of free tokens are among the most likely to dump them once they hit an exchange.
The combination of these two factors should mean for a more loyal community and genuine investors who share in the interests of Lynchpin’s long-term vision.
Supply and Demand
We have established that there will be a demand for the LYN token by its utility, however demand can also be increased by a limited supply.
Lynchpin have a max or total supply of just 5 million tokens.
In response to the Lynchpin’s community asking why the project chose to have a total token supply of 5 million LYN tokens, was as follows:
“Our aim is to create stability for our LYN token, and we plan to do that by limiting our supply to 5 million tokens. Furthermore, a total amount of 3 million LYN tokens will be locked for 12 months, leaving a limited supply of 2 million LYN tokens for the public. To increase the price of LYN, we are focusing on building strong uses cases for our project, as well as leverage the Ethereum-based 18 decimal point to help increase the intrinsic value of LYN”.
This is good news, not just for early investors, but for anyone who purchases the token even way down the road, as with no more tokens being produced, the LYN token’s value is only dictated by the supply and demand. This is where the Ethereum token model becomes important also, as the 18 decimal standard allows as many users as possible to own LYN tokens and continue to increase its value.
For more information about Lynchpin check out, or check out the .
Source: Francis Jenkins, https://discovering-blockchain-with-kt.quora.com/LYN-Token-s-Strategy-to-Tackle-Critical-Issues-in-Crypto-Market-1