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Inflation is generally seen as a negative state. Just take a look at recent media reports following the Covid-19 pandemic or Russia's invasion of Ukraine, and it becomes clear that in the real world, nobody wants it to happen. And yet, some of the two biggest meme currencies operate on an inflationary model.
World-renowned Dogecoin (DOGE) has an infinite supply of tokens, while Dogelon Mars has a supply of 1 billion (ELON) tokens and yet they are some of the most successful meme currencies on the market to date. As more and more meme coins such as Rocketize (JATO) adopt deflationary tokenomics models,will they overtake top players Dogelon Mars (ELON) and Dogecoin (DOGE)?
Dogecoin may be the best-performing meme token, however, its future is called into question. At the height of its popularity, Dogecoin (DOGE) reached a market capitalization of over $85 billion. Now, at the time of writing this article, it is only $8.5 billion. Because this Shiba Inu-inspired meme token has a very low token price, its value is mainly cultural. If the trend of doge dies, then so will Dogecoin.
Likewise, Dogelon Mars (ELON) suffers from the same amount of risk. Value can only be predicted in the short term as cultural trends come and go. As this cryptocurrency was created purely based on the hype of Elon Musk, it sits in a precarious position in the markets.
Unlike Dogecoin (DOGE) and Dogelon Mars (ELON), Rocketize (JATO) exercises a deflationary tokenomics model. Over time the currency will become more scarce, and as a result, the value of each token will increase. What this means for Rocketize (JATO) holders is that an early investment is highly likely to make a profit in the future.
Consequently, the token's community will contribute to the growth of the Rocketize (JATO) economy, which will only go on to encourage a further expansion of participants. By using this model, Rocketize does not need many resources to develop and expand.
Predominantly this is done by burning the Rocketize (JATO) currency. Although burning money does not immediately seem like something that will strike investors, it is an effective tactic to increase the value of a cryptocurrency.
According to the Rocketize (JATO) white papers, 50% of all its token supply was burnt upon release to a wallet address that could not be recovered. Further down the line, Rocketize (JATO) will enforce a 2% tax on all transactions with the token. The tax is broken down to 1% of the transaction burned and 1% of the transaction is replaced into holders of Rocketize wallets. The endgame for Rocketize will be to have 78% of its entire supply burned and also 1.5% of every transaction burnt.
There is no denying that both Dogecoin (DOGE) and Dogelon Mars (ELON) have achieved a great amount of success with an inflationary tokenomics model. Indeed, it has allowed investors of any economic situation to participate in the meme coins' respective communities at any time during the existence of the coin. Dogecoin (DOGE) and Dogelon Mars (ELON) are therefore really accessible to those beginning to learn about crypto.
However, this is where the true purpose of meme currencies is called into question. Aside from the memes and close communities, should meme currencies also hold monetary value? Investment implies the buyer wishes to receive money back in the future regardless of whether it is a meme currency or not.
Dogecoin (DOGE) and Dogelon Mars (ELON) are investments that have brought crypto enthusiasts significant returns in the past. However, their inflationary models mean their supply is infinite or almost infinite and so subject to volatility. Investing in a deflationary coin such as Rocketize is a potentially more stable way to see a higher return on your investment.
For more information on this project:
Presale: https://launch.rocketize.io/register
Website: https://rocketize.io/
Twitter: https://twitter.com/RocketizeToken
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Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.
