Deep Dive Into HAGGLEX TOKENOMICS And Its Importance To Investors

I’m pretty sure in your Crypto research and investing activities you’ve heard things like “Max Supply”, “Circulating Supply”, “Market Capitalisation”, “liquidity” and all that parlance yeah? Especially if you started following the DeFi trend early this year, you’d have heard these terms a million times….lol.

So today, I’d be explaining what some of these terms mean and how they affect the profitability of a Cryptocurrency. I’d also be using the $Hag token to better explain this.

Let’s start with Maximum Supply;

Maximum supply refers to the number of a crypto currency that will ever exist. EVER EXIST in the market, on a Blockchain, in wallets, lost in smart contracts etc. For example there will only be 21million Bitcoin in the world.

Why is Maximum Supply important?

Because it keeps the laws of economics final, giving full autonomy to market forces namely Supply&Demand.

Think about it, our fiat ₦,$,€,¥,£ aren’t controlled by market forces, they’re controlled by the Central Banks, hence the Federal Government can just print more monies without any direct intrinsic cost which gives rise to inflation, because supply becomes unlimited and demand stays constant which reduces price value, hence inflation, so your savings are actually declining in value (not good).

But in Crypto Currency, Supply is fixed and demand is unlimited which increases price value.

That fixed supply is called “Maximum Supply”, you get why it’s important now?

Ok great (well if you don’t you can always hit me up on twitter)

Now $Hag token has a maximum supply of 10,000,000 $Hag. That means there will only be $10,000,000 Hag Tokens in the world.

And $Hag’s Maximum Supply is apt, here’s why?

  1. It’s under 1 Billion
  2. It’s under 100Million
  3. It’s under 50million

If the Max Supply or circulating supply of a Currency is around these figures it means it’ll take a long time before an average investors (holders of < 0.5% of the maximum supply) of that coin can make any real profits on it. For someone to make a lot of profits on it, they’d have to hold at least 1% of the Max Supply to make any real profits or losses on price change of that coin.

This is why you hear things like “burn tokens” (especially if you’re a BSC user) all of these is in a bit to reduce the supply of that token.

A coin under 50 million Max Supply with a growing ecosystem and use case, would easily have increase in scarcity (demand) than a coin with over 50million Max Supply.

Get it?

Next is Circulating Supply

You guessed right, this refers to the no of that currency in circulation, in people’s wallet, on exchanges, lost in smart contracts etc.

$Hag’s circulating supply at the time of writing is 1,000,000 $Hag tokens, that’s 10% of the Maximum Supply; why is this important, I’ll explain at the end of the article.

Next is Market Capitalisation, now Market Capitalisation refers to how much in USD is spent to own, trade or move a Crypto currency.

There are a lot of factors that affect the Market Capitalisation of a Currency;

  1. What Blockchain is it built on and what’s the performance of that Blockchain?
  2. What type of Crypto is it? Is it a utility token, a privacy token, an exchange token, a stable coin or a security token?
  3. What’s their use case, what does that token do?

Hag is built on the Ethereum Blockchain, provides security and decentralisation for assets and activities carried out in the HaggleX ecosystem.

This quality in a Blockchain is needed for enterprise solutions and this brings us to the type of token $Hag is; a utility token for the HaggleX platform. This means that transactions on $Hag will be fast and thousands of users can interact with the HaggleX ecosystem without having to experience slow transactions and exorbitant fees.

So what’s the HaggleX platform?

The HaggleX platform is a platform that solves the problem of exchanging crypto currency for utility while providing solutions amongst other things like;

  1. OTC trading (P2P or Peer to Peer)
  2. Crypto savings and interest (BitSave)
  3. Crypto lending and borrowing (DeFi or Decentralised Finance)
  4. Crypto trading (Exchange)

In a nutshell, HaggleX users would be able to use $Hag to pay for utilities such as light bills, data, airtime, taxes and so much more, plus perform those 4 activities and more listed above.

Now you’ve seen the use case of $Hag token.

$Hag is at ICO stage now and, that means we won’t be able to determine Market Capitalisation just yet.

But here’s a candid question for you, do own any $Hag?

If you don’t, click this link to buy some.

You can also watch this video to find out how to buy $Hag

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Written by KarlaGod



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