Grasping the mechanics behind TVS requires going through a few token launch cycles to really understand what's happening.

Here's what you'll notice: most token launches follow a predictable script, and spoiler alert—the price usually tanks.

Why? Because the initial liquidity pool gets bloated beyond what the project can actually sustain. You've got capital flooding in at Day 1, but there's minimal real utility or user adoption to back it up. The math doesn't work: more tokens hitting the market than genuine demand can absorb.

It doesn't matter if the project is fundamentally sound. The structural imbalance between available liquidity and authentic usage creates selling pressure that's hard to overcome. Whales exit, retail follows, and the price discovery process becomes brutal.

This is why understanding token supply dynamics and liquidity positioning before launch is critical. Not all dumps are created equal—some signal a flawed tokenomics model, others reflect market conditions. The difference between a project that survives and one that doesn't often comes down to whether the team designed for sustainable liquidity rather than just Day 1 hype.