Eli5 what happens to crypto tokens that the creator keeps for themselves?

Question

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?

In: 0

Answer 1

I create 100 Bison-dollars, sell 50, and keep 50 for myself

I declare that 1 Bison-dollar is worth 5 British pounds (because that’s the exchange rate they will set when I kidnap their Queen!)

So long as people are willing to pay what the Bison dollar is worth, I have 50 valueable Bison Dollars I can sell whenever I want.

But since most people feel that Bison dollars aren’t worth the money they are printed on, they are worthless.

That’s the crux of the entire Crypto currency market, it’s entirely a question of whether people are willing to respect a particular value on the token.