How alt coins and their founders are hurting all of crypto. One can create billions of free coins out of thin air, get a small fraction of them on an exchange, and gradually sell their millions of free coins for bitcoin, then cash out to fiat to pay themselves and their team. This is happening more and more everyday. Faster then new money is entering. The notion that a project is valued at billions of dollars due to its market cap is very misleading. If only a small fraction of a coin are actually available to buy on exchanges, price goes up much faster. Then the millions sitting in wallets of the founders can be sent to the exchange and traded for bitcoin or eth, then cashed out to fiat. Most of these projects are slowly draining billions of dollars from the space, and they didn’t really earn anything. Give it some thought. It’s no wonder we are now dependent on Tether to keep things from crashing. Currently, there is not enough new money entering the space, but there are more than enough new coins being traded for valuable bitcoin, then cashed out to fiat. Every new coin is a slow leak to the market cap when you realize how they are paying salaries by trading free coins for bitcoin, then cashing out to fiat.
