A message to CC doubters from a relatively new retail investor in the crypto space with ~$25K deployed in the Canton Network, very low dry powder and operating at a loss on my investment.
I keep seeing the same thing on X. “The coin is good for validators / institutions and provides no value to retail”. Over and over, every day. That is the primary argument against CC from retail.
I say, it will be good for both, you just have to be patient.
This is not a meme coin and it isn’t a hype machine. If you study the tokenomics, once the burn becomes deflationary, the supply will start to shrink. As more adoption comes on board, more CC will be needed.
If supply is shrinking and demand is rising, the only option is for price to increase. The speed of the demand will dictate price over the next ~8 years. The impact of new supply (and therefore price) after ~8 years will be dictated by the amount of new demand compared to the 2.5% inflation. If you pay attention, over 4 billion coins have already burned with startup usage! Unlimited supply is only relevant if growth stops or the minting schedule changes.
Another popular argument is that a massive amount of CC sits in a small number of wallets (presumed validators). This is true. If you held one of those wallets, would you rather sell at $0.15 or $5.00? Which one benefits you more? I would do what they are doing. Lock up 70%, wait for demand to reach the point where the supply is scarce and then sell it at a premium to satisfy the demand. Rinse and repeat to maximize profits. Smart money won’t pump and dump because that is short term gain, long term loss. Smart money will strategically deploy their supply to maximize profits over the long term. When price is down, they buy all the grain. They don’t sell all their accumulated grain when the price spikes, they sell bread crumbs at a premium for as long as possible. They are referred to as SMART money for a reason - this isn’t their first rodeo.
The retail market will play a role (for you @LeilaniFarms). The burn mint equilibrium will set the functional min (utility), the market and demand fluctuation will set the mean and max at any point in time. This is a difficult concept for much of crypto retail because most coins have no utility, therefore the min, max and mean are all driven by the market (read hype / hope). The price floor is zero if there is no utility.
The real question is whether you think adoption is going to happen or if you think the network will fizzle out and die. The only way the price does not appreciate is if the network fails to generate sufficient demand. I don’t know what the skeptics have been reading, but the demand is coming in a big way. When it does, we will see which side is right.
I think the network is going to explode…therefore I am in the retail minority that has decided to get engaged.
Remember what @YuvalRooz said. Patience, and then everything all at once.
I don’t receive this statement as touting his company. I don’t receive it as a prediction of near term value. I receive it as confident conviction.
As a proud leader in a business environment, I bought that yesterday, I will buy it today and I will continue to buy it tomorrow.
✌️
