What if I tell you Brave has the power to manipulate the monetary supply of Basic Attention Token?
Sounds crazy right? You think the total BAT amount is capped at 1.5B.
If you look at their profit model
Holy 💩 this is great, and Brave only takes 30% on advertising revenues in BAT, and give users 15% to reward them for watching ads. Advertisers can only buy ad spot using BAT, ensuring the value of BAT will rise according to the growing advertising volume.
But what you're forgetting is users are dispersed and decentralized, but Brave is centralized. The amount in they can hodl is not 30% of 1.5B, but 30% * (total transaction used for advertising), which is massive over time, if they never sell, theoretically they can accumulate 99.9999999999% of total BAT.
If they take the 30% of total advertising volume and don't spend it for a few months, they can create immense deflation in total cash (BAT) circulating in the system and raise the price, then sell the tokens at will to create inflation. The timing is totally up to Brave, the rate of inflation and deflation, the price is also up to Brave. You will be swindled out of your money because they can rig the price.
This is a scam coin.
Sounds crazy right? You think the total BAT amount is capped at 1.5B.
If you look at their profit model
Holy 💩 this is great, and Brave only takes 30% on advertising revenues in BAT, and give users 15% to reward them for watching ads. Advertisers can only buy ad spot using BAT, ensuring the value of BAT will rise according to the growing advertising volume.
But what you're forgetting is users are dispersed and decentralized, but Brave is centralized. The amount in they can hodl is not 30% of 1.5B, but 30% * (total transaction used for advertising), which is massive over time, if they never sell, theoretically they can accumulate 99.9999999999% of total BAT.
If they take the 30% of total advertising volume and don't spend it for a few months, they can create immense deflation in total cash (BAT) circulating in the system and raise the price, then sell the tokens at will to create inflation. The timing is totally up to Brave, the rate of inflation and deflation, the price is also up to Brave. You will be swindled out of your money because they can rig the price.
This is a scam coin.
