I saw a blogger post a screenshot of 'profits' from a pool of a worthless token, and I didn't expect so many people to actually believe it. Some even foolishly said it was 'photoshopped', and they are all 'smart investors' on Twitter, not newbies anymore. I feel a bit emotional; there are really so many fools.
Let's do a little popular science.
This does not require P, the amount of positions is determined by the coin price, which is decided by the ratio of the issued tokens to the mainnet tokens when liquidity is added at the opening. The value ratio of the two is 1:1.
For example, if you issue a total of 100 tokens and add liquidity with 100u while putting all 100 tokens in the pool, then 100u = 100 tokens, and the opening price is 1u. The opening total market value is 100u, easy to understand right?
Here comes the key point, if only 10% of the tokens are put in, the LP composition is 10 tokens + 100u, then the opening price per token is 10u, total market value: coin price 10u × total amount 100 = 1000u market value.
As for the remaining 90% of tokens, they can be referred to as 'mouse warehouses'. Theoretically, these 900 tokens have a value of 900u, but there is only 100u in the pool. If you dump all of them without any buy orders, you can only retrieve 100u.
Similarly, if you issue a total of 1 trillion tokens and only put 1 token and 1u in the pool when forming the LP, then the opening price is 1u, and the total market value of the tokens becomes 1 trillion, with the remaining 99.99%... of the tokens in your hands, theoretically worth nearly 1 trillion, but there is only 1u of liquidity in the pool, so you can only sell 1u of your nearly 1 trillion worth of tokens.
This is not important; what matters is that you are theoretically the 'richest person'.
Is that not enough?
Ok, at this point, you only need to use 1u to pull up the price, which can increase the coin price by 4 times (the pool doubles, and the coin price quadruples). At this point, you have '4 trillion'!
In simple terms, to put it in one sentence, even dogs can issue tokens, and the total amount and opening price of the tokens are also determined by dogs. Thus, dogs can naturally decide how much 'wealth' they have in their wallets.
Moreover, there is no restriction on 'duplicate names' in the crypto world. One can issue a token named btc or eth and put it in a wallet, and in front of newbies or fools, one can still show off.
Many people also use this method to fish, creating false tokens with the same name and airdropping them to users' wallets to deceive them into granting authorization. Everyone should be vigilant.
The previous content was not educational; its purpose was to serve as a warning.
