Frosted Cake (FROSTEDCAKE): What is it and should you invest?

Investors interested in improving their performance through crypto may want to check out Frosted Cake as an option. This month, the token has been receiving increased attention, which means more investors and subsequently higher rewards. In light of these developments, we thought it would be good to let you know more about it just so you’re more informed. 

What is Frosted Cake?

Very briefly, Frosted Cake is what we call DeFi. Decentralised finance (DeFi) is an innovative method of investing that involves blockchain technology. Thus it eliminates the need for a central entity, which would have otherwise had complete control and, most likely, high fees.

How it works

Instead, on this platform, investors are rewarded just for holding the native token FROSTEDCAKE. This is a BEP-20 token because it is based on the Binance Smart Chain (BSC). There are various sources of this coin but the most popular and easiest to use is PancakeSwap – a decentralized exchange (DEX). On the project roadmap, the developers expect to be listed on Gate.io but we just have to wait and see if it happens. 

To begin, when a new user buys FROSTEDCAKE, they are charged a small see for the transaction. That is nothing surprising since all cryptos charge some sort of fee. However, instead of rewarding miners in, say, the Bitcoin network, some of the fee is distributed among every investor holding the coin. 

Tokenomics

As you can see above, the rest of the collected fee is either kept in the liquidity pool or used in marketing. Although that may seem unfair, both of these uses are beneficial for the investors. Having deep liquidity protects the coin’s value from price swings keeping the coin’s value stable. Meanwhile, marketing the coin attracts new investors and subsequently more fees to distribute. 

See also  10 best ways to make money with cryptocurrency in 2022

Price predictions for 2022

As a potential investor, you’re first interested in the potential for growth in whatever project you participate. In the case of Frosted Cake, the project has been receiving a lot of attention and has even been listed among the top trending coins. Such attention is good for any crypto but more so for DeFi tokens which rely on charging fees and distributing them to stakeholders. 

This is not only good because investors receive rewards, but also because the value of FROSTEDCAKE gets to go up. That way, it’s a double reward with higher financial performance. 

Frosted Cake has only been around for a few months and is now listed at #4,358 on CoinMarketCap. Not bad when there are over 13k coins but not at all remarkable if the price chart below from Poocoin is anything to go by.

Here, you can see that despite receiving some attention in the early days, the coin’s value has remained largely flat since. If the 2nd page of Google is where websites go to die, then this kind of price chart is the sign of a coin about to die. 

Unless it receives a sudden jolt back to the limelight, Frosted Cake is unlikely to make you a profit any time soon. Besides, this appears to be a risky investment given the little liquidity it has and market capitalization. 

Leave a Comment

Your email address will not be published.