The Story of DeflationCoin: How the team's pain became an idea that could change the world

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The Story of DeflationCoin

A person is the creator of their own destiny. They can change their beliefs, cities, and professions. But there's one parameter beyond choice — the country of your birth and the economic system in which you take your first steps.

The pain that built us

The core of our team grew up in a country where annual inflation is measured in double digits, and prices rise faster than the average salary of $500.

During wartime, such countries experience not only accelerating inflation but also a declining quality of life. It's hard to feel safe when the economy is unstable and combat drones have repeatedly hit and exploded in nearby houses.

Many economists believe that wars are an inevitable consequence of the fiat credit system. When some countries accumulate public debt and export inflation to others, conflict becomes only a matter of time.

In such circumstances, it's hard to believe in fiat currencies. You inevitably start looking for something that doesn't depreciate along with your time and effort.

For many, Bitcoin seemed like a salvation — an asset with limited supply, beyond the control of banks and governments. It was seen as a hedge against inflation, a tool of freedom, a new form of money. But it had one serious flaw: as soon as you buy it, a bear market begins, and it drops by 80%. Not exactly the best protection against inflation.

Technology and finance should serve humanity, not governments. — The DeflationCoin Team

In such conditions, we simply had no choice but to become professionals in our fields — trading and IT. With a $500 salary constantly eroded by inflation, you're forced to become the best at what you do.

Hard times create strong men. Strong men create good times. Good times create weak men. And weak men create hard times. — G. Michael Hopf

Revelation and insights

Our professional experience has taught us three simple yet fundamental principles.

1. To be empirical skeptics — practitioners who question conventional wisdom.

Crypto media often repeated that Bitcoin is a deflationary asset. As proof, they cited statistics on "lost wallets." We saw a logical flaw in that: an inactive wallet is not the same as a lost one, and the accidental loss of keys is not systemic deflation.

2. To analyze outstanding cases

Most analysts waste time on noise, trying to explain everything at once. What truly matters is studying anomalies — rare but exceptional cases. It's in these deviations that the truth is most often hidden.

We accidentally came across an asset unrelated to crypto that had increased in value by 3,600 times — in-game cases from CS:2. One of the key reasons behind this growth was real deflation: once opened, the cases are permanently removed from circulation, and the supply decreases over time.

It seemed paradoxical to us that millions admire Bitcoin for its "limited supply," even though it has no real deflation.

From an economic and mathematical standpoint, deflation is more effective than a limited supply — it creates built-in scarcity rather than just a fixed cap.

We began to wonder: if a model similar to CS cases existed not within a game but on the global market and were accessible to investors worldwide, it could potentially rival even Bitcoin — which, as many experts know, has its fair share of weaknesses.

Before creating Ethereum, I couldn't understand why no one had yet built a blockchain with smart contracts — it would have significantly improved the existing system at the time. Many people (especially intelligent ones) often suffer from excessive modesty and too quickly conclude that if no one has done something before them, there must be a good reason not to do it. That's a mistake. — Vitalik Buterin

3. In statistics, it's important to draw conclusions from large data sets, not from isolated examples.

A single case may be a coincidence, while patterns emerge only with a large volume of observations. In analyzing crypto assets from the top 100 by market capitalization, we identified five systemic problems:

  • Lack of real utility
  • Unlimited supply
  • High correlation with Bitcoin during periods of panic
  • Products often represent complex technical constructs with no real value for the average user
  • Extremely inflated multiples: the market cap–to–revenue ratio of many projects is absurdly high, while many of them generate no revenue at all

Obsession with the idea and the challenges we faced

In our country, there are almost no venture funds, no entrepreneurial mindset, and no culture of taking risks. But that's precisely what crystallizes intent: when nothing works — everything depends on you.

We followed in the footsteps of our remarkable compatriots — Pavel Durov (Telegram), Nikolay Storonsky (Revolut), Vitalik Buterin (Ethereum), Denis Globa (TradingView), Sergey Brin (Google) — people who proved that the power of an idea is stronger than geography. Their journey became not just an inspiration for us, but proof that anything is possible. Sleepless nights, giving up stability, breaking social ties — this isn't romanticism, it's a side effect of when an idea stops being a choice. It's a state where the cost of inaction is far greater than the cost of action.

Over time, you're left alone with the idea. Your loved ones don't understand why you're doing it, the market is skeptical, and the world keeps spinning without you. But that solitude becomes a filter — revealing who is truly obsessed with their idea and who was merely inspired by it.

And when another night ends with dawn breaking over the screen, only one feeling remains — you can't stop; you have no moral right to give up. Not because you want to keep going, but because you simply can't do otherwise.

The ones who are crazy enough to think they can change the world are the ones who do. — Steve Jobs

Challenging the status quo

We live in a world where money depreciates faster than human labor. Bitcoin was the first response to the flaws of the fiat credit system — but being first doesn't mean being the best. The lack of an internal economy, the absence of real deflation, signs of digital tulip mania, and recurring 80% crashes — all of this erodes trust in the legendary asset.

DeflationCoin is building a digital state with a diversified IT economy and a deflationary currency. DeflationCoin is creating something that has never existed before in human history.

Inflation is the way to take money from the people without having to pass any law. — John Maynard Keynes

On our journey, our team faced serious challenges — losing funds in the centralized FTX scam and paying enormous fees on other exchanges. These problems are familiar to millions of traders worldwide. That's why the first direction of our ecosystem is a hybrid CEX-DEX exchange with zero fees.

Our exchange will include:

  • The security of a DEX
  • The speed and order book of a CEX
  • Zero fees giving users an edge
  • An entertainment platform (the secret ingredient — don't tell anyone)
  • AI analytics

After developing this direction, we will diversify our ecosystem by creating various verticals focused on the mass user — each integrating DeflationCoin as a utility token.

The greater mission

We strive not merely for our ecosystem's products to be in exceptionally high demand among millions of users worldwide. Our goal is institutional recognition.

  • In 10 years — at the level of sovereign and pension funds.
  • In 15 — at the level of central bank reserves across different countries.
There's no point in setting unambitious goals — life is finite. The true meaning lies in serving humanity and building products that outlive us. — The DeflationCoin Team

We invite you to become part of the great story.