With $500m locked-up asset in four hours, SUSHI is bombing the market
A new token, KIMCHI, locked in a value of nearly half a billion dollars four hours after trading began. KIMCHI is the fork of SUSHI. The project claims that it “could become the next hot DeFi mining token”. If you haven’t heard of KIMCHI, a token that can be mined by DeFi, that’s because it didn’t exist yesterday. Four hours after it went online, KIMCHI’s locked value reached nearly half a billion dollars.
KIMCHI is the fork of Yuno and SUSHI, which is the fork of Uniswap.Its growth trajectory mirrors that of other recent DeFi projects, notably Yam, where the token soared to $150 in a matter of days and then plunged to $0 in 48 hours.
KIMCHI is such a new token that it is hard to tell exactly how it differs from SUSHI. Sushiswap launched token SUSHI, with the same name, to encourage people to contribute liquidity to the platform.
The platform also gives users who lock in tokens with smart contracts a portion of the transaction fee, meaning they can’t use the tokens for a certain period of time.
KIMCHI allows users to deposit assets such as ETH, SUSHI, TEND, USDT or Uniswap in return for an outrageous interest rate (up to 66,000% annualized, according to the platform) that generates liquidity for the platform. Since its launch today, KIMCHI has been valued at more than $44 million.
Just this past weekend, DeFi had $8 billion in lockup, which means people want to make money from their cryptocurrency holdings. It is also clear that people are willing to use new agreements rashly when there is little reliable information to back them up.
There is no question that using the KIMCHI protocol is a risky investment decision. The KIMCHI Protocol uses an unaudited smart contract.
KIMCHI’s official website does not reveal more than the mention that “KIMCHI could be the next hot DeFi minting token”.
More curious users can view the token contract — as long as they understand it. Part of the appeal of these tokens seems to be that users get the pleasure of quickly engaging with the next hot thing before it takes off.
It’s a bit like YAM, but with millions of dollars at stake.
With the boom in liquid mining, an increasing number of fake DeFi projects have created a FOMO mood in the market. Many of them are not code audited, have no real value, and are actually regressive. Overseas communities refer to such projects as “Degenfi”.
Invest carefully and make sure you know enough and can afford to lose money before you take part in any investment.
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