@feliciana

Tokens that rely solely on recruiting new buyers to generate returns may resemble a Ponzi scheme, especially if rewards come from token emissions without a real product or service. Such structures are unsustainable because they collapse when user growth slows. A legitimate token economy must be backed by tangible revenue sources like fees, trading spreads, or product usage. Investors should scrutinize whitepapers and on-chain data to verify claims. Clear pathways for value creation and long-term sustainability are essential. Without them, even high initial growth can quickly reverse, leading to massive losses for late participants once momentum fades.

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