Banana Coin

Banana Gun was the first project introduced through the Binance Airdrops Portal. Logically, the token created some buzz and attracted many investors and traders.This article looks behind the hype. We will explore what the token is about and discover some strengths and weaknesses when it comes to investing.Let&#39;s go!<h2 id="header-0">About Banana Gun</h2>Let&#39;s first answer the questions about Banana Gun. The Banana Gun project is focused on advanced trading bots. Currently, the solutions are available on Telegram, and web app platforms will be added soon. The bot can be used to trade tokens on Ethereum, Solana, and other chains.<h3 id="banana-the-heart-of-the-ecosystem">$BANANA: The Heart of the Ecosystem</h3>The native token, $BANANA, plays a crucial role within the Banana Gun ecosystem. It is an ERC-20 token and serves multiple purposes, including:<ul><li>Voting on Proposals: Token holders can vote on various proposals affecting the ecosystem.</li><li>Burning for Extra Features: Users can burn $BANANA to access additional features within the bot.</li><li>Exclusive Access: Holding $BANANA grants entry to a private holders&#39; chat.</li><li>Real Yield Distribution: Holders benefit from real yield generated by the trading bot.</li></ul><h3 id="tokenomics">Tokenomics</h3>Let&#39;s quickly go through the most essential tokenomics. This will be relevant when discussing the pros and cons in the next chapters.<ul><li>Token Name / Typ: $BANANA, ERC-20</li><li>Initial Circulating Supply When Listed on Binance: 3,220,000 (36% of total supply)</li><li>Total and Maximum Token Supply: Total: 8,900,000, Max: 10,000,000</li><li>HODLer Airdrop Allocation: 800,000 (9% of total supply)</li></ul>Token Distribution:<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/41af907ca6da4ad5934877de741b14d2.png" />Source: Binance<h2 id="header-1">$BANANA Assessment</h2>As always, assessing a newly listed token in terms of its investment potential is challenging. However, tokenomics provides a fundamental aspect of our assessment. Here is some insight.<h3 id="advantages-of-banana">Advantages of $BANANA</h3>Fair Initial Circulating Supply The initial circulating supply upon listing is 3,220,000, which is 36% of the total supply. This is a significant portion, ensuring sufficient liquidity and market participation from the start.Real Yield Distribution $BANANA holders receive rewards from the trading bot, providing a tangible incentive and utility to hold and use the token. Based on the documentation, the distributed yields are based on the bot revenue (fees). Moreover, the $BANANA tokens that are distributed as rewards will be bought from the market, further increasing the buying pressure.Community and Governance Focus With functions like voting on proposals and access to holders&#39; chat, $BANANA emphasizes community involvement and decentralized governance.Airdrop Allocation Allocating 9% of the total supply for HODLer airdrops rewards early adopters and loyal community members, fostering a strong and engaged community.Burn Mechanism The ability to burn $BANANA for extra features helps reduce circulating supply, potentially increasing the token&#39;s value over time. Additionally, 11% of the max token supply has already been burned.Treasury and Ecosystem Allocation A significant 46% allocation to treasury and ecosystem development ensures long-term sustainability and continuous platform improvement.<h3 id="disadvantages-of-banana">Disadvantages of $BANANA</h3>As you will see, some of the advantages I listed above can also be seen as disadvantages. Accordingly, these aspects must be reevaluated after a couple of weeks/months based on a more solid data fundament.High Allocation to Treasury and Ecosystem While a 46% allocation to treasury and ecosystem is beneficial for development, it may raise concerns about centralization and control over a large portion of the supply.From Degens For Degens While it is a nice claim, it limits the potential bot users. As we will see below, usage will be one of the most essential aspects. Unfortunately, the current Telegram setup does not support a broader usage from &#34;non-degens.&#34;Team Allocation 10% of the max token supply is allocated to the team. Although this aligns with many industry standards, some may view it as high compared to more decentralized projects.Market Pressure from Initial Circulation The relatively high initial circulating supply (36% of the total supply) might create significant selling pressure if early investors decide to liquidate their holdings quickly.Reward Distribution &amp; Utility The distribution of yields generated by the trading bots is certainly one of the strongest utilities $BANANA offers. While this incentivizes people to hold their tokens and attracts new holders, the utility might lose its attractiveness as more holders join while the trading volume doesn&#39;t grow. Accordingly, this could trigger selling pressure.<h2 id="header-2">Summarized</h2>The Banana Gun is an interesting project providing a strong ecosystem focused on specialized trading bots.The $BANANA token offers a balanced distribution model with strong incentives for holders, active community engagement, and a focus on long-term ecosystem development. Moreover, compared to many other token launches, $ BANANA offers true utility.However, its relatively high allocations to the treasury and team, as well as its strong dependency on bot usage, reflect some potential risks.

Banana Gun — What's Behind The Hyped Token?

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Ben Walther

Інші статті, опубліковані 25 лип. 2024 р.

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