It’s another week and another obscure cryptocurrency is grabbing the headlines. While most eyes seem to be on whether the SEC can torpedo the Robinhood IPO because of issues around crypto trading, Rocket Bunny has punters wondering whether it could be a short cut to buying the NFL.
Rocket Bunny grabbed headlines this week when it created the first cryptocurrency trillionaire. A nursing student woken up this week and found that his Rocket Bunny holding was – hypothetically – worth over a trillion bucks. While the position was held in a Coinbase wallet, it is turning out to be harder to transfer to other wallets. Why?
What is Rocket Bunny?
Rocket Bunny is a deflationary token with a theoretical maximum global supply of 777 quadrillion. Each transaction in Rocket Bunny is taxed at 4% which is distributed with 1% to existing holders, 1% to locked liquidity, 1% to the so-called Rabbit’s Hole and 1% to liquidity providers. As volume increases, the amount ‘burned’ increases logarithmically (see the Rabbit’s Hole below), eventually contributing to an exponential decrease in supply.
Each transaction in Rocket Bunny is designed to reward holders and increase the price of the token via the liquidity locks process. The idea is that just by buying and holding Rocket Bunny in your wallet, you can earn passive income that can be deposited directly in your wallet via frictionless yield on all transactions of Rocket Bunny.
Will Rocket Bunny take you to the moon, or just Watership Down?
But what is this Rabbit Hole I hear you ask? It all sounds a bit Watership Down, doesn’t it? The Rabbit’s Hole is the virtual bonfire on which Rocket Bunny gets burned. This is the black hole that Rocket Bunny goes into as activity in the token picks up.
Let’s get back to nursing students who wake up as trillionaires. Life simply does not work like that. Technically he now owns enough Rocket Bunny to buy several Fortune 500 companies. This is a theoretical value with zero basis in reality which is why the transactional test – what is someone prepared to pay for it – should be applied. This is also why it is impossible to transfer it to a different wallet. In reality it won’t buy him a can of Coke.
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Rocket Bunny wants to get listed on Coinbase with a legitimate value. The publicity created by this week’s tomfoolery may get it accepted. But the price has been on a steady decline this month despite all the shouting.
A good measure of the value of a currency is its utility. People use US dollars every day as a medium for international exchange. They trust the US dollar because it is backed by the world’s biggest economy. That’s why one of the big tests of a token is how much real dollars it will get you. In our view the best cryptocurrencies are those with a real-world utility. To create a token and then say you are going to burn it the more it gets used, thereby reducing your supply and boosting value, is a great idea, until you consider whether Rocket Bunny has any other purposes.
Our view is this is just another pie in the sky project. We can’t see where Rocket Bunny will fit in with real world demands.