Reflection Tokens Grow as Another Staking Platform Freezes Withdrawals
Voyager is the latest crypto platform to freeze all trading, deposits, and withdrawals.
The New York-based digital asset brokerage announced on Friday, July 1, that ‘current market conditions’ meant the platform could not operate as usual. Voyager offers rewards to investors staking tokens like Polkadot, Apecoin, USDC, Bitcoin, Ethereum, and more.
The catalyst for the suspension of activity on Voyager Digital was a customer defaulting on a loan worth more than $670 million.
The customer – crypto hedge fund Three Arrows Capital – suffered heavy losses during the huge sell-off of cryptocurrencies that have been happening from mid-May until today.
Bitcoin and Ethereum are both down more than 70% from their all-time highs reached in November last year.
Crypto lending DeFi platforms struggle in a bear market
Just a few weeks ago, it was the DeFi platform Celsius that froze customer assets and withdrawals.
While Voyager offers crypto rewards up to 10%, Celsius was offering up to 18% on certain cryptocurrencies. Neither could continue to offer such impressive APY on cryptocurrencies as both prices fell and customers began withdrawing their investments.
Of course, it’s not only DeFi projects offering high staking rewards for crypto that are feeling the pinch.
Businesses like Coinbase and Crypto.com have also had to cut staff to survive the current crypto winter caused by macroeconomic conditions – inflation, war, global supply shortages – and the collapse of the Terra Luna network in mid May.
Reflection tokens grow – will they save DeFi?
Reflection tokens have been growing their investor bases despite the crypto bear market.
These cryptocurrencies also offer crypto passive income to investors – but the mechanism is much more scalable than fixed APY rewards which look great on a website homepage. Reflection tokens charge a transaction tax on buy and sell orders, but this tax is spread across all existing investors depending on their holding size.
EverGrow Coin is leading the reflection token space with a 14% transaction tax.
The 14% is split into 8% redistributed in the BUSD stablecoin, with 3% set aside for liquidity, 2% for buyback and burn and 1% for marketing. Since launching in September last year, EverGrow Coin has paid out more than $37 million in BUSD and burned 53% of its initial coin supply.
There’s no guarantee of APY with EverGrow Coin – you have to calculate the math yourself using calculators on the EverGrow Coin website.
An example. At the current EverGrow Coin price of $0.0000001366 a $1,000 investment would buy you EGC 7.3 billion. With the trading volume at $111,000 today, this would net you an annual return of just $53 – or an APY of 0.5%.
But if the trading volume were to hold at the 2022 peak of $12 million, you would earn $5,740 BUSD in a year – an APY of 574%. And this is not factoring in any price increase in the value of EverGrow Coin itself.
To ensure steady trading volume EverGrow Coin is releasing an NFT marketplace and content subscription platform in the coming months. LunaSky and Crator will ensure greater exposure for EverGrow Coin while any profits from the utilities will either be used to buyback and burn EverGrow Coin or be 100% redistributed as BUSD rewards among investors.
This is possible because, unlike other cryptocurrencies, all the core development teams earn salaries from BUSD rewards just like any other investor.
The post Reflection Tokens Grow as Another Staking Platform Freezes Withdrawals appeared first on .
Voyager is the latest crypto platform to freeze all trading, deposits, and withdrawals.
The New York-based digital asset brokerage announced on Friday, July 1, that ‘current market conditions’ meant the platform could not operate as usual. Voyager offers rewards to investors staking tokens like Polkadot, Apecoin, USDC, Bitcoin, Ethereum, and more.
The catalyst for the suspension of activity on Voyager Digital was a customer defaulting on a loan worth more than $670 million.
The customer – crypto hedge fund Three Arrows Capital – suffered heavy losses during the huge sell-off of cryptocurrencies that have been happening from mid-May until today.
Bitcoin and Ethereum are both down more than 70% from their all-time highs reached in November last year.
Crypto lending DeFi platforms struggle in a bear market
Just a few weeks ago, it was the DeFi platform Celsius that froze customer assets and withdrawals.
While Voyager offers crypto rewards up to 10%, Celsius was offering up to 18% on certain cryptocurrencies. Neither could continue to offer such impressive APY on cryptocurrencies as both prices fell and customers began withdrawing their investments.
Of course, it’s not only DeFi projects offering high staking rewards for crypto that are feeling the pinch.
Businesses like Coinbase and Crypto.com have also had to cut staff to survive the current crypto winter caused by macroeconomic conditions – inflation, war, global supply shortages – and the collapse of the Terra Luna network in mid May.
Reflection tokens grow – will they save DeFi?
Reflection tokens have been growing their investor bases despite the crypto bear market.
These cryptocurrencies also offer crypto passive income to investors – but the mechanism is much more scalable than fixed APY rewards which look great on a website homepage. Reflection tokens charge a transaction tax on buy and sell orders, but this tax is spread across all existing investors depending on their holding size.
EverGrow Coin is leading the reflection token space with a 14% transaction tax.
The 14% is split into 8% redistributed in the BUSD stablecoin, with 3% set aside for liquidity, 2% for buyback and burn and 1% for marketing. Since launching in September last year, EverGrow Coin has paid out more than $37 million in BUSD and burned 53% of its initial coin supply.
There’s no guarantee of APY with EverGrow Coin – you have to calculate the math yourself using calculators on the EverGrow Coin website.
An example. At the current EverGrow Coin price of $0.0000001366 a $1,000 investment would buy you EGC 7.3 billion. With the trading volume at $111,000 today, this would net you an annual return of just $53 – or an APY of 0.5%.
But if the trading volume were to hold at the 2022 peak of $12 million, you would earn $5,740 BUSD in a year – an APY of 574%. And this is not factoring in any price increase in the value of EverGrow Coin itself.
To ensure steady trading volume EverGrow Coin is releasing an NFT marketplace and content subscription platform in the coming months. LunaSky and Crator will ensure greater exposure for EverGrow Coin while any profits from the utilities will either be used to buyback and burn EverGrow Coin or be 100% redistributed as BUSD rewards among investors.
This is possible because, unlike other cryptocurrencies, all the core development teams earn salaries from BUSD rewards just like any other investor.
The post Reflection Tokens Grow as Another Staking Platform Freezes Withdrawals appeared first on .
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