Unit 2 · Level 4 · Reading a token
Unit review: reading a token
You've learned to read the allocation pie, name what a token is for (utility, governance, meme, or nothing), smell ponzinomics from the yield alone, and run the five-question checklist. Time to put the detective badge on.
Free to play. No ads, no token, no account needed to start.
What you get asked
Match the red flag to what it's telling you
Red flags rarely travel alone. One is a warning; two is a verdict.
A token has 50 million coins circulating out of a 1 billion total supply. What percentage of the supply is floating?
50M ÷ 1B = 5%. That means 95% of the supply is still locked. Today's price is set by a sliver of the real supply.
A token needed to actually use a network is a utility token; one that only votes is a ___ token.
And if it neither pays, works, nor votes on anything with cash flows, it's attention with a ticker.
Which project would pass the sniff test best?
Long vesting, community-heavy ownership, and yield with a real payer: that's the profile the checklist is hunting for.
Your friend says 'the tokenomics don't matter, the chart is pumping'. Best reply?
A pumping chart on a 5% float is the setup, not the refutation. The unlock calendar doesn't care about momentum. 🐜
The rest of this unit
Allocation pies, ponzinomics, and the checklist that spots exit liquidity.