With cryptocurrency investing increasing in popularity, greater opportunities have also increased for scammers.
News of Kim Kardashian being sued for promoting the infamous EthereumMax scheme is spreading. This is undoubtedly another blow to the cryptocurrency industry as investors are once again reminded of some of the grim realities of the market.
With cryptocurrency investing increasing in popularity, greater opportunities have also increased for scammers. Likewise, these types of scandals can ruin the reputation of genuine altcoins that are emerging on the scene as investors become wary of new projects.
As competition from altcoins becomes fiercer, there is more pressure to offer new and better passive income generating opportunities. As a result, reflection tokens were created, both as a means of passive income and to provide extra security to potential investors.
What are reflection tokens?
According to intergovernmental blockchain expert Andy Lian, every transaction made with reflection tokens is taxed. Thus, for each transaction, a percentage is contributed to a liquidity pool, while another amount is reserved for redistribution among token holders. As a result, the token “auto-generate” its value, promoting a culture of “keep and win” that reduces the pressure to sell.
Reflection tokens strive to generate more passive income, preventing early investors from dropping the token during its initial price discovery phase. These are most commonly caused by “whales“, who buy enough of the token to manipulate its value.
As the process is automated through smart contracts, investors need to take few actions and can be confident that their money is safe. However, reflection tokens have experienced some hesitation as they are new and untested. Additionally, meme coins employ more thought and tend to lack reliable business models. Lastly, their high transaction fees can have a deterrent effect.
Safemoon is one of the first cryptocurrencies to use reflection. As of early 2021, Safemoon has nearly 3 million holders, 585 trillion coins in circulation, and an impressive market cap of $2 billion.
The reflection mechanism on Safemoon is designed to reduce volatility, encouraging investors to hold onto their tokens. Based on a smart contract that charges a 10% fee for each transaction, the fee is shared between holders based on the token balance, with the other half going to Safemoon’s liquidity pool to ensure buyers and sellers have liquidity.
Adding to the long list of dog meme cryptos, Kishu Inu was created last year in April and describes its goal as being a “decentralized meme project with true purpose”. Kishu Inu has a whopping offer of 100 quadrillion and a trading cap of nearly $7 million. A 2% KISHU reward is given to holders’ wallets for every active user transaction, to support healthy distributed network and community usage. More rewards are given if more of the currency is used. The liquidity pool tokens have already been burned.
HUH Token was only launched on December 6th on PancakeSwap, but since the 6000% price increase in the first month, HUH has quickly been added to UniSwap, SushiSwap and BitForex. The HUH is the first “use meme“(taking the best qualities of meme coins and utility tokens) and aims to build a decentralized metaverse, the MetHUH, whereby data acts as currency.
Thus, everyone gains from the data they produce. This is about to take off as there are rumors that hundreds of social media influencers will start promoting HUH on January 19th.
The HUH Token reflection comprises a reward system in which HUH holders are uniquely rewarded based on the percentage of their holdings. For example, if user A owns 0.5% of the supply, 0.5% of the HUH rewards will be distributed to him. Consequently, all HUH holders will be fairly rewarded for having faith in MetHUH. The total number of HUH tokens reflected is calculated by adding all buy and sell transactions on the HUH network.
Will the experimental reflection token be a success? Well, we already have some very strong competitors, with impressive records, willing to take the risk. Only time will tell if these cryptocurrencies end up transforming the industry.
Learn more about HUH Token here:
Web site: https://huh.social
HUH Official Swap- https://swap.huh.social/