The crypto community is buzzing with anticipation as tomorrow marks the listing of XRP20 on Uniswap. Reportedly, there are over 20 billion tokens already staked, triggering promising yields of approximately 49% annually. As a member of the ‘version 2’ token group, XRP20 includes built-in staking features, a significant distinction from tokens contingent on third-party DeFi protocol access.
Many eyes are set on XRP20 as it follows in the strides of similar token BTC20, which witnessed a six-fold increase at launch. The staking utility inherent in XRP20 is expected to mitigate potential sell-off pressures at the time of listing, anticipated from investors seeking quick profits. The stakes are high for long-term holders as they are poised to earn substantial rewards from staking these tokens.
XRP20 tokens, with no affiliation to Ripple or XRP, are mirroring XRP’s token supply, numbering at a hefty 100 billion. The XRP20 team has devised a strategy that funds the stake-to-earn utility by earmarking 40% of token supply for community rewards. These rewards will be meticulously meted out over the next four years. Stakeholders may retrieve their tokens seven days post-staking. Meanwhile, tokens continue to earn APY as long as they remain staked.
Operating on the Ethereum blockchain, XRP20 offers more decentralization compared to XRP, which is under the control of Ripple. Records show no tokens reserved for founders or team members, reaffirming XRP20’s position as a level playing field for all involved. As a bonus, the Ethereum platform also offers a more mature and liquid decentralized finance (DeFi) ecosystem in comparison to the XRP ledger.
However, it is essential not to overlook XRP’s current faster and cheaper transactions compared to Ethereum, the base on which XRP20 operates. That being said, Ethereum’s impending upgrade with sharding technology is projected to decrease transaction costs and speed up processes for XRP20.
In addition to its staking benefit, XRP20 surpasses XRP as a deflationary coin. Around 0.1% of each buy and sell transaction is set for burning, systematically reducing the circulating supply. Consequently, a total of 10% of the total token supply will be removed, thereby elevating the scarcity quotient of the XRP20 token.
XRP20’s potential for significant growth has been highlighted by crypto Youtube channel Up Next Crypto in their recent projections. For those who missed the 2018 XRP bull run, XRP20 has been touted as a second chance to seize potential gains. Substantial expectations are riding on XRP20’s remarkable value proposition that could see it achieving a similar market cap as that of XRP, resulting in potential gains of around 13.5x for presale investors.
Nevertheless, it is critical to remember that crypto investments come with high-risk potential, even with strong projections. Always exercise caution and perform thorough research beforehand.
Source: Cryptonews
