This time, I want to be polite with the team $USUAL , in the new year I will not use language that easily causes war anymore. In this post, I will skip all the analyses regarding funds, potential, risks, opportunities, and simply explain this token in the easiest way.
USUAL is a governance token of a project that focuses on stable coins. You can cite the project's potential, the total supply about to be distributed in this round, the increase in TVL USD0, and how USD0 can replace USDT, etc. But the essence of the USUAL token is that it is a governance token for a stable coin project.
The USUAL token is just one of the 3 types of tokens in the project, which include Liquid Deposit Token (USD0), Liquid Bond Token (USD0++), and the USUAL token. The project's operating mechanism is not much different from other projects related to RWA, Staking... you can research it yourself.
USUAL is a token used for governance purposes, project voting, aimed at increasing decentralization for the platform. And in reality, the project has drawn information about guarantees, insurance, etc. for assets in the ecosystem, but ultimately it is still a staking, lending, borrowing project, and the USUAL token is used to attract assets into that ecosystem through staking activities, receiving rewards...
This is also why you see that the increase or decrease in TVL USD0 essentially does not affect the price of USUAL in recent days. The project can develop, and the total TVL of the project may increase, but the price of USUAL essentially remains the same, because the project does not profit from the token but generates profits from operational fees, so they do not need to push the price up.
Examples of good projects, powerful funds, but the token price does not need to be too high are Wormhole with token $W . A bridge project that transfers assets, almost number 1 in the market, leading in the Sol ecosystem, but the price has still been at the bottom since listing with no pump at all. Simply, the project profits from transaction fees while the token is only used to vote on things that most people do not understand.
Or $C98 has also caused many people to fomo since it was listed only to regret, dividing approximately 60 times from the peak even though, in reality, I see the team is still active, the product is still updated, still drawing games and telling new stories. Simply put, they do not profit from the token but from the project.
A little about the fund, they invest in the project, not just pouring money into the token, and the token is just the tip of the iceberg in the crypto market. The token is merely a tool to attract cash flow into the ecosystem, to put it bluntly, to attract liquidity.
Looking back a bit, Tether and Centre are the big players in the stable coin market currently with USDT and USDC; they do not need to create a governance token for intermediaries. Simply put, they have the ability to attract cash flow, and users widely accept them, so creating a token to attract liquidity is unnecessary.
Therefore, even the prospect of USD0 being listed (although a bit far-fetched) may not necessarily create a strong price increase for USUAL, because at that time, the stable coin (the main product of the project) is widely accepted, has enough liquidity, then the intermediary token is also no longer needed.
A simpler example, in the traditional market, supermarkets and stores focus on improving product quality rather than upgrading coupons or product quality assessments, even though these are also necessary but not indispensable. Or lending and pawn businesses focus on cash flow and debt recovery to generate profits instead of upgrading machinery, technology, or promoting products.
So I still hold the view that whatever the project, it ultimately focuses on its main core product to generate profits. If it’s about stable coins, asset transfer bridges, or storage wallets, the governance token may not serve a purpose. It might initially be designed to attract assets into the ecosystem, but in the long run, it would only harm investors.
I have provided 3 weekly charts of the projects mentioned in the article for your reference :D
The above are arguments and analyses based on my perspective and experiences. If you want to debate or counter, please do it in a civilized and polite manner.
