- Elon Musk’s Twitter deal has spawned a new cryptoasset, EBT, which even rose after its launch
- Cryptos can be very volatile with respect to price, and ALCX token has lost on a year-to-date (YTD) basis
- Alchemix claims to be a DeFi platform, where users can deposit cryptos and avail of loans
The crypto verse is strange, which might be the primary factor behind its hyper-volatility. Soon after it was clear that billionaire Elon Musk is acquiring Twitter, a new coin, Elon Buys Twitter (EBT), came into existence.
What more? EBT token's price reportedly surged in no time, and it could even get a listing on CoinMarketCap.
CoinMarketCap tracks over 19,100 assets, but in the overcrowded space, it is mostly the top 100 or top 500 assets that make the most noise. Among the top 100 are BTC, SHIB, APE, AXS, and others. All coins come with a particular project, which claims to provide a certain service like blockchain gaming.
Let’s talk about a Decentralized Finance (DeFi) project Alchemix, which features in the top 500 assets.
What are Alchemix “self-repaying” loans?
A DeFi platform, Alchemix claims it accepts cryptoassets like ETH and USDC as deposits, which earn yield for the depositor. The project mentions “same-asset loans” on its official website.
Here, it is said that the borrower uses their own crypto holdings as collateral, against which a “synthetic” version of the token is provided as a loan.
The platform further claims that deposits of users are not locked and can be reclaimed at any time. It is said to use a mechanism to earn yield from deposited assets, but in the whitepaper, there is a mention of “expected value” and “loss”. This ideally calls for proper due diligence on the part of crypto enthusiasts.
What is Alchemix (ALCX) crypto?
Alchemix DeFi protocol uses ALCX as its native token. As of writing, the market cap of ALCX token was over US$90 million. The trading volume had surged over the past 24 hours, which had resulted in a tiny gain in value.
ALCX token was trading at nearly US$72, which is significantly low compared to the price of nearly US$280 on January 1, 2022.
The only bull-run noted in ALCX token this year was over the first half of January, after which there has been a continuous slide in value. Besides, almost a year back, ALCX was trading at over US$1,300.
Data provided by CoinMarketCap.com
Elon Musk’s Twitter takeover has spawned a new token EBT, which could even gain value. This shines the light on why crypto enthusiasts must be careful before making any investment decision.
Alchemist was a top 500 asset at the time of writing. It claims to provide loans against crypto collateral. According to the platform, these loans are “self-repaying” as the deposited collateral earns yield. ALCX token has lost substantial value both on a year-to-date (YTD) and 1-year basis.
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