$DYDX destroyed 24.06 million tokens, but the price hasn't changed much. Now, the project team playing this destruction game can no longer fool the smart investors.

Let me explain how this works. For example, if a token has a total supply of 1 billion and 100 million are circulating in the market, the project team holds 900 million tokens. It would be lucky if this token could eventually cash out 500 million tokens, which means at least half of the tokens cannot be cashed out because the market liquidity cannot support full circulation for this token. Selling them all at once would crash the price to zero, so they can only sell slowly to maximize cash out. Ultimately, a project can cash out at most half of its tokens by the end of its lifecycle.

Once we understand this basic logic, let's talk about the destruction gimmick. Token projects usually announce the destruction of a certain number of tokens, which is essentially just destroying the tokens they can't cash out. It doesn't really affect the market; it's just a word game. They can't cash them all out anyway, so they create a black hole address to send the tokens into, claiming to destroy them. The project's economic model suggests that the price will rise 📈, and investors see this as good news, leading them to buy and provide liquidity for the project to sell.

I advise all token projects to stop these word games. The people still in this market are not foolish. If you want to destroy tokens, be honest and buy them back in the secondary market and then destroy them. Otherwise, don't drop your pants to fart; it's redundant.