I understand that anyone can develop a coin today and just rug pull people whenever they want, but that is not the only reason that makes coins shit. Assuming there was a regulation, a coin can meet all the criteria of the regulation and still be shit.
There are a lot of coins that are still being traded in the market today that are absolute shit. First things first, when a coin has an unlimited supply, there's a 99% chance that coin will be shit because it will never be scarce. A coin that is never scarce will never have value because no matter how high the demand is, the supply will always be more, and after a short period, it will start depreciating in value. There are so many coins like that.
You'll see coins with so much market cap, but their prices are just a little over $1. No every
There is nothing regulation can do about a coin that is just shit.
Btw, why are people still considering altcoins are a coin you can rely on for the long term? Most of these coins have not beaten the ATH they had 2 to 4 years ago. If you must invest in altcoins, it has to be short-term. take profit whenever you can and bounce
Sounds to me like you've pretty much hit the nail on the head.
Many people just forget that "regulated" doesn't automatically mean "good" - just like an MOT seal doesn't guarantee that your car will never break down.
I see the problem with unlimited supply in the same way. Inflation eats up value, regardless of whether it's fiat or crypto. And just because a coin has a high market cap doesn't mean it will perform well in the long term - especially if the tokenomics are bad.
As far as altcoins are concerned, most of them are more like start-ups - 90% won't make it in the long term, a few will survive and perform well. Those who hodl blindly in the long term are just playing the lottery. Get in for the short term, take profits and don't get married - that's probably the healthiest attitude for most projects.
The bottom line: regulation can make scams more difficult, but it doesn't turn shitcoins into gold. Scarcity, community, use case - without the three it will be difficult.