What is Cult DAO crypto? Is CULT token safe?

Highlights

• CULT token is the native digital asset of Cult DAO, a very new cryptocurrency project
• Cult DAO talks about the negatives of centralized systems, and a shift toward decentralization
• CULT is new and has yet to establish clear utility, and hence extreme caution is advised

If there is a word that sums up blockchain and digital assets using this technology, it is decentralization. Bitcoin (BTC), which has had a rough ride this year, was always envisaged as a decentralized alternative to fiat currencies.

Now, one token is claiming to speed up the shift of power from centralized entities like banks to users of the financial system. Though what exactly this means and how it will be attained have yet to be seen, let’s know a little more about this cryptoasset.

What is Cult DAO cryptocurrency?

Cult DAO is a relatively new blockchain-based project. Neither the official website nor the “manifesto” uploaded on it shine light on how it intends to unfold in the longer run.

The manifesto talks broadly about the weaknesses of the centralized financial system. It also mentions mental illness and the “fear” that many people have. The use of the term DAO indicates that the project intends to give maximum powers in the hands of users through decentralized governance. At least one utility is mentioned in the manifesto, which is “funding” other decentralized ventures.

The top 50 token holders of the project would serve as “Guardians”, and they shall oversee the voting process on governance proposals.

Also read: Anchor Protocol crypto down over 40%: Here’s likely reason

CULT token

CULT token appears to be native to Cult DAO. The project mentions that CULT token can be swapped for another proof-of-stake (PoS) token, dCULT. Funds are raised by the project by levying a tax on the transactions done using CULT token.

It is stated that the swapped CULT can be regained at any time. Besides, rewards may accrue to the user for holding dCULT token.

CULT token price

CULT is a very new participant in tradable digital assets space. On CoinMarketCap, it does not feature in the top 100 or even top 1,000 assets by market cap. The price tracking website indicates a steep rise in the value of CULT crypto in early-April. This was followed by a relatively subdued phase.

As of writing, CULT token had gained nearly 20 per cent in the past 24 hours. This price growth dwarfed even the 24-hour price surge of BTC, and ETH. CULT token’s 24-hour trading volume was over US$9 million, and the price as of writing was nearly US$0.00002.

Also read: Terra (LUNA) crypto falls more than 50%: Why?

Data provided by CoinMarketCap.com

Is CULT token safe?

Cult DAO crypto is a new project, and the native CULT token has a very low market cap. It has yet to manifest how users would benefit from its DAO protocol. Any decision must be backed by proper due diligence.

Bottom line

Cryptos are continuing with their volatile run this year. Cult DAO crypto claims to fund decentralized projects. It has the native CULT token, which can be swapped for dCULT. How all this unfolds in the longer run is a wait-and-watch game.

Also read: Considering cryptos for retirement investment? Points to evaluate first

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