This is how they attract investors and they want to establish saying that there's passive income may came to them if they invest on their tokens but they didn't disclose the market activity what it got. Now we see how their tokens struggles to pump and it didn't get decent volume that's why many lose their trust and patience to wait for something great to happen since for longest time this token remains the same and no big movements happen.
If they just release an update and create good utility that can boost their token and its usage maybe there will be a demand also a great price movement will happen to it.
It's always important to have some sort of value to income ratio and as long as that gets better, price will always get better with it as well. Think of it like this, if you were to pay 10 dollars for a token, and get like 1 dollar per month, wouldn't you buy it? Everyone would, hence the price wouldn't stay at 10 dollars for too long since everyone would want it.
If the price is 100 dollars and you make 1 dollar per year, then I am sorry but the price may not go up, even go down. This means that as long as the rewards people could get for having it goes up, then the price of it will go up as well. That's how it has always been like and I am guessing that it is always going to be like that for the longest time as well.
This is correct analogy and actually what’s happening on DeFi. But this is very dangerous too because there’s always a time when the liquidity on exchange become lesser since holder that farming the tokens will surely sell profit tokens while the time when people will keep buying tokens is very limited. At some point, the price will surely reach its price ceiling and result to panic sell when the token is not moving forward while the liquidity starting to get thin.
This kind of DeFi investment is very risky and only for short. Also plus the fact that there’s amlot existing DeFi tokens that offers this feature which make sholder jumps from old tokens to mew tokens frequently.
A chain reaction that will happen if there's lesser support compared to those who are throwing/dumping their coins, same drill in any projects inside the market, if interest already ship out from the project and already moving away to support a newer coin, the possibility that the value of that project will fall hard,
If there's nothing especial and support is no longer that much, investors and traders will not bite the project anymore.
Change in investment or for some, they will just keep those coins to stake and gain rewards, but there's no added investment
that will take place.