What is "Real Yield" vs "Ponzi Yield"?
Ever wondered why some crypto projects offer insanely high yields that feel too good to be true? Most people assume it's just risky, but often, the source of that 'yield' is actually eating the project alive! 😱
Imagine getting paid for doing your actual job - that's 'Real Yield' in crypto.
Think of it like a successful pizzeria 🍕; they make money from selling delicious pizzas (real product/service), and therefore they can pay their staff and expand.
We see this with projects that genuinely generate revenue from fees, lending, or services, and then distribute a portion of that to token holders.
But here’s the scary part: many projects promise amazing 'yields' that aren't from any real economic activity, leaving you to wonder how they sustain it.
That unsustainable 'yield' is often a 'Ponzi Yield,' where early investors are paid with money from newer investors, not from the project’s own success.
It feels exciting at first, but once new money dries up, the whole thing collapses, and we're left holding the bag.
😬 Therefore, when you see high yields, always ask: 'Where is this money really coming from?' If it’s not from sustainable revenue generation, it’s a huge red flag.
Understanding this protects your hard-earned crypto ✨
#Tokenomics #RealYield #PonziScheme #CryptoEducation #InvestSmart - Disclaimer: Sharing knowledge and insights as part of learning and growing together. For educational purposes only, not financial advice.