The veteran crypto projects, which were the " top " altcoins in the previous bull runs, in the 2017 and 2020 cycles, are now the left behind chains because people no longer use or farm them to get airdrops or coins. Thus, altcoins have always been criticized as not being a long term investment apart from Ethereum, the leading altcoin.
The primary reason why veteran altcoins fall from favor is that a full market cycle generally takes 3 to 4 years and the tokens are mostly not unlocked within the first months of the launch. Rather, as a marketing strategy, all teams choose to prolong the unlocking period as much as possible to make use of the scarcity of the token in the early and hyped times.
As the market cycle completes itself, the coins are unlocked and ready to be dumped in the open markets. Because of this reason, lots of investors accept to lose some money when the trend changes in the market. The case happened several times in crypto and, most probably, this will keep happening forever.
Token Burn to Fix it?
Today there was a speculation about EOS regarding the possibility of burning half of its total supply. The tweet gathered a lot of attention and people longed EOS after another tweet sent by BWENEWS under the headline of EOS token burn. Unfortunately, this was a misunderstanding and people were already in a position with some hopium inside.
Tweet by Yves La Rose, CEO of EOS Foundation
As we saw the engagement on the possibility of such a case, the market wants to see similar actions. Burning the allocation of community, treasury or team can be another way to energize a blockchain / project that is left behind.
You will easily notice that the massive volume on this " left - behind " chain took place merely because of the narrative of token burn or more scarcity.
Maybe, there are two options for these veteran coins to come back in a way that people enjoy.
Definitely, the first way can be a token burn narrative that should be supported with some follow up incentives. Otherwise, the upside move cannot go beyond a single week trade for some margin traders.
Second way might be a retrospective airdrop to those who are ready to come back and provide some liquidity to the dApps in the ecosystem of these projects. EOS, one of the highest earners of crypto in its investment rounds, lost all its allure in years. I think this coin can be a good example of a possible come back if they can find a way to use the funds of the team wisely.
So far EOS has not shown any positive signals. Yet, no teams would be okay with watching the mythical bull market in crypto from outside. Veterans will be pushing some ways to revive. If one method works, we may expect similar ones to do the same thing.
What do you think about the disadvantages the veteran coins have?
Share your thoughts below 👇
Hive On ✌️