The things I don't like about Bitcoin Cash DeFi protocol SmartBCH.

SmartBCH is a very young technology and protocol, and as many such things won't be developed just yet, a user will have to wait to see new features being implemented. Those features probably are a reality on other networks, but SmartBCH will start to be built. Before you read my entire article, I used to hold one of the most popular projects on SmartBCH MistSwap DEX token, but I no longer do, and now all of my money is sitting on RSK and Sovryn DEX tokens.

One of the things that I have observed is that SmartBCH is full of meme tokens, and this is very simple to explain because memes are the easiest projects that you can create and don't require much work from developers and token creators. Now there is nothing wrong with investing in meme coins, but people must know that as a whole, you shouldn't go all in just on meme coins and practice caution when dealing with them. I am not saying that meme tokens are wrong; I am saying that SmartBCH has many meme tokens to choose from if you have an appetite for them. And I must be very clear about it, and I wouldn't say I like meme coins because when they implode, they crash hard, and I don't know how a meme token that gets too big may or may not affect the whole ecosystem, not only for SmartBCH but also Bitcoin Cash BCH network. The bad things that may happen on SmartBCH may harm Bitcoin Cash for the association, not as a direct result.

I will say that the best practice will be to encourage caution when it comes to meme tokens, not only for those but also for forks and repeating projects.

One positive thing is that SmartBCH has many dexes, and as I write this article, there are already over four dexes. Each of them has its token, being Mist, tango, and Eben, the three most popular, at least that is the order from my perspective, but you could arrange those on your order as a reader; the order will not change the observations that I have about dexes tokens.

Let's go to the point; let's talk ponzinomics.

The three previous dexes tokens I just mentioned have something very particular in common: they are all inflationary. They all have either a substantial token supply (Green Ben). The other two have an unlimited supply, meaning the supply will not be capped like Bitcoin Cash is.

An unlimited supply means that you will need larger and larger amounts of money coming into your project regularly to sustain a price; on Dec 8, 2021, Mist had a total supply of 330 million tokens; as I write this article, that supply will have only increased. I fear that the price could collapse at some point in the future because of too much-circulating supply.

You may think that talking about SmartBCH projects is not making honors for the title of my article. Still, the truth is that those promoting SmartBCH believe that projects like MIst and Tango are, in general, a good thing, but what happens when that which you think is positive converts itself into something negative.

I don't know what will be the future price of MIst and inflationary tokens, but I do know that large supply coins will end up bleeding investors funds at some point; if you hold Mist or any other inflation token, I am not telling you to panic sell, to study if your money is treated well with that kind of tokenomics.

Another thing I don't like is the token projects that are pretty much scams where creators and developers hold most of the tokens, and they only presale a small amount. In contrast, most of the supply is held by them directly. It could end up being that investors only make token creators and developers wealthy at the spending of investors, which is one reason I'm not too fond of presale tokens.

Now SmartBCH is none of the previous projects I describe because SmartBCH is just a protocol, but the community has those projects as a good thing; I guess my article is just a call to practice caution when it comes to investing money in general and always make your research and never trust someone else's findings and that includes myself and this article as well because what I am writing is just my opinion and the way I interpret what I see.