How to understand the main trading actions of GMT from on-chain data?
This time GMT has made a big move, locking up and burning 600 million tokens. After analyzing the on-chain data and comprehensively considering the team's various strategies, I will first publish the most important conclusion, and then explain how I came to this conclusion.
1. The GMT team spent a huge amount of money to lay out a medium- and long-term strategy, and the people who planned and set up the strategy in the team are experts.
2. As long as you can see the situation clearly, you can follow the game maker and reap the biggest benefits.
Why do we say that the GMT team has laid out a big plan?
The team previously burned 800 million tokens, which, if calculated at the price of 0.16U, would cost $130 million. Now they are preparing to burn 600 million tokens, at a cost of $100 million, for a total of $260 million, which is considered a large sum in the current market.
GMT has been running in a range of 0.13 to 0.18. Did the team spend $260 million just to burn coins? Obviously not. The subsequent layout must earn back a value far exceeding $260 million. The team cannot do short-term business. This must be a medium- and long-term layout. The only possibility is to greatly increase the value of GMT.
At present, the destruction of 800 million + 600 million is just the beginning. In order to destroy 600 million, the team has also designed a voting lock mechanism. This time, 900 million will be locked, which means a total of 2.3 billion tokens will be deflated. The original 6 billion has shrunk by 40%, which is a strong shrinkage. In terms of the circulating market, the project party destroyed 800 million of the 3.8 billion circulating market, leaving only 3 billion, and 600 million of the 2.2 billion non-circulating market was destroyed, leaving only 1.6 billion. Among the 3 billion circulating market, 900 million were locked up at once, leaving only 2.1 billion. This created an extremely strong deflationary situation within two months, which will definitely squeeze GMT to rise. The destroyed tokens were all purchased from consultants, investors, and teams, which means that all the potential selling pressure risks unlocked every month were fully eliminated, leaving enough room for upward pull.
At present, the inflation rate of GMT has dropped to 2.5% annualized, which is much lower than the inflation in the United States, and it has become a fully circulated market like meme coins. The wash-out period is about half a year, which is in line with the normal wash-out period of a token.
Judging from the data on the chain, most of the undecided chips have been cleaned up. It is possible to wait for the momentum to rise.
