Yield-Farming and High-APY tokens are some of the most popular niche projects in the crypto space. They offer exceptionally high compounding returns and usually generate a lot of hype from the crypto community. Today we take a look at the latest craze in crypto, RingFi, a Yield-Farming token recently listed on CoinMarketCap that gained over 85% in the past 24-hours. Let’s look at RingFi and its token RING and see why the price is rising.
What Is RingFi (RING)?
Launched on CoinMarketCap on March 13th, RingFi is a protocol deploying the world’s first composable auto-staking token. It’s looking to become the next-generation DeFi platform on the BNB chain, rewarding users with a passive income simply for holding the token.
RING is powered by rebases and rewards users with 0.02362% every 15 minutes. This adds up to an annual compound interest of 392,537%. The APY is fixed and part of the reason the token is able to generate that much return is due to the 14% buy and 16% sell tax.
According to the whitepaper, RING gets its income from the transaction taxes rather than diluting investors’ position and passing it on.
A Rebase token is one whose circulating supply is adjusted algorithmically in response to the token price. The variation in supply is called Rebasing and can affect the way a token looks on the chart. The idea is to keep the trading chart looking bullish via rebases.
Rebasing is quite a controversial concept and is a trend among meme-coins, however, rebasing has proven to increase the market activity for a token due to the way the charts end up looking.
Why Is RingFi Price Rising?
The main reason for RingFi’s recent price hike is the recent listing on CoinMarketCap along with the various YouTube video published about it hyping up the project.
While many influencers try to avoid the “P” word, we’re going to give it to you straight. It’s clear that a 392,537% APY is unsustainable, and the project is essentially a programmatic Ponzi scheme.
However, that doesn’t mean that you still can’t try and gamble some tokens on RingFi and try to exit with a profit before the scheme collapses. It’s worth noting that RingFi should be considered a high-risk investment.
The good news is, there’s over $275k in liquidity on PancakeSwap, meaning that you could make a significant profit on this project. However, if you hold RingFi for too long you might end up losing all of your investment.
Once again, proceed at your own risk.
You can buy RING on PancakeSwap.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency.
Also Read:
Top 3 Metaverse Crypto Coins With a Circulating Supply Below 25 Million
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