High APY is a red flag.
A 55% APY is indeed a very suspicious proposal. It's not feasible, neither sustainable. OP can be pretty sure this token is going to lose price quite fast due to supply being too much for the demand this project has in crypto market.What calls attention and awakes interest from investors regards this project isn't its usage (concerning AI trading tools), but the financial return offered. Therefore, there is no doubt it's a speculative investment, which heavily relies on hype in order to succeed on short run, generating quick profit for developers and early investors solely.
The places where I see such high APY usually are when the project incentivize staking with the left over tokenomics and people already understand that it's nothing but an illusion since it means inflation of the token supply and people will short.
Other than that, could be a red flag.
All of these projects are scams.Think about it, even warren buffet barely cracks above 20% on his career, when you think of that, something that says 55% is "guaranteed" tells you all you need to know. But lets take it for a second that it is what we are seeing today and lets say that it's doing fine, we should consider that even in that case we are not seeing how this could be different.
Because with high pay, it will create more tokens, to pay, and that will droop the price, and that means, while you have more tokens, that also means less dollar value. It's simple finance, I mean anyone who knows basics of economy will know that this will not work but for some reason shillers still try to convince people that high pay is something good, it is not, specially on unknown stuff.
The scam is often in the details. Yes they can guarantee this return, but that is why they never mention dollars. Print useless tokens freely. Because with high pay, it will create more tokens, to pay, and that will droop the price, and that means, while you have more tokens, that also means less dollar value. It's simple finance, I mean anyone who knows basics of economy will know that this will not work but for some reason shillers still try to convince people that high pay is something good, it is not, specially on unknown stuff.