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

The value of crypto is in its use (same with any currency really).

So the eth is only worth anything because people use it for transactions.

Qtc wouldn’t have any noticeable value because no one would be using it.

So on paper you’ve made qtc = eth but if you tried to sell the 50 qtc being held, you’d be better off with monopoly money.