Let say a random person make 100 tokens called, qtc. They throw 50 qtc and 50 eth into the liquidity pool, so one qtc is worth 1 eth. If a person buy it, they are getting it from the pool. What happens to the 50 qtc in the developer wallet, because on paper, it is worth 1 eth each?
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On paper, the currency that was set aside is worth 1eth each because the trading price of qtc is equivalent to 1eth, assuming that the currency is actually seeing some trade to begin with. On paper isn’t necessarily reality though, obviously if those coins were introduced to the supply it would tank the price.
What happens to that crypto is it sits there doing nothing until the creator decides to do something with it. Which in this scenario is probably to wait until they think the hype for the coin has peaked and then dump their reserve coins in an effort to extract maximum value out of whatever market there is for qtc.
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