Another new DeFi token is popping up on CoinMarketCap today. It seems that crypto investors are putting a lot of emphasis on yield-farming tokens as a way to build passive income. HODL (CCC:HODL-USD) is the newest yield-farming token to get a fair bit of attention. With a new milestone of investors reached, the HODL crypto news is boosting the token’s value today.
So, what’s behind to new token looking to take holders to the moon? Here’s what you need to know:
HODL Crypto News: What to Know
- HODL is a yield-farming token. These are a class of DeFi tokens that are highly volatile, and driven mostly by hype and high trading volumes.
- Holders participate in yield-farming by simply owning HODL tokens.
- There is a 10% fee on HODL sellers. 4% goes to a liquidity pool on PancakeSwap (CCC:CAKE-USD), held through Unicrypt’s timed pool-locking function.
- HODL owners receive proportionate shares of the remaining 6%; two-thirds converts to Binance Coin (CCC:BNB-USD), and the other one-third is distributed as HODL.
- This is very different from other yield-farming tokens. Because holders receive BNB, the incentive is greater.
- There are 1 quadrillion HODL total. A burn wallet reportedly holds 25% of the supply and counting. This permanently removes the tokens from circulation.
- There are two punishments to disincentivize large sales of HODL. The first is a 1 BNB charge on transactions of over 1% of the total HODL supply. 1 BNB is right now worth about $385.
- The other is a “zero-balance punishment,” which states that if a user sells off their total HODL supply, they cannot collect token rewards from future HODL purchases for up to 50 years.
- It is relatively easy to circumvent these punishments. Users can open new wallets to escape the zero-balance punishment, if they even choose to come back to HODL after their sale. And as long as HODL continues to appreciate, a 1 BNB fee on a whale selloff becomes less and less damaging to the seller’s profit.
- According to HODL’s website, future plans include the release of NFTs and a gamification feature.
- Regardless, people are seemingly all-in on HODL. The token is third on CoinMarketCap’s most-searched tokens list. The token is gaining 112% on the day’s trading session. Additionally, trading volume is up 185%.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.