Volumes in crypto project Spore Finance are soaring at the moment, putting on more than 500% in the last 24 hours, but what exactly is Spore Finance, where is it bought and sold, and is it for real?
Spore Finance identifies with the spore-like spread of mushroom spores – it is aiming to build an ecosystem of reflect tokens, algorithmically generated NFTs, and what it is calling a next generation NFT prediction market.
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Spore Finance is a self-declared reflect token: reflect finance aka RFI is an Ethereum token that is designed to provide yield within the DeFi environment. Transaction fees are charged and then passed on to the existing RFI holders. In other words, by holding the token you get fees for any transactions in that token.
The good news with RFI is that it is very automated, the bad news is that you are trusting a very undefined central party and contracts are complicated, easily hacked and often buggy. Developers who work on these contracts have a somewhat sketchy approach to the realities of economics.
With Spore Finance 3% of transactions are burned forever. It has a similar profile to other passive staking reward coins on the market. It is possible to make a quick buck on these if you get in early enough but they really tend to be short term opportunities.
Huge burn percentages don’t incentivise a lot mind you. Leaning towards NFTs does not tend to make for a long term and sustainable project, but you are also betting on the future of NFTs with Spore Finance.
What are NFTs and why get excited about them?
NFTs are non-fungible tokens, which prove digital ownership of an asset. These are very flexible and can be unique, hence the price variance could be enormous. An NFT on the Mona Lisa (should the French state ever decide to sell it) is going to be worth a lot more than an NFT on my right sock!
Ethereum blockchain is being used as the foundation for most NFTs currently in play in the market at the moment. NFTs can be stored in a digital wallet and their possession proves ownership. So we can see a situation in the future where, yes, oil tankers could be changing hands several times in a month using this kind of technology. We just aren’t there yet.
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Where are we now with Spore Finance?
Spore Finance is following a road map that is actually quite recent – it launched 18 March and followed that up with an airdrop and incentives program. Second layer blockchain development has now been completed and SPORE is currently in the process of forming partnerships.
Not every project is worth investing in. If NFTs become a staple in crypto over the long term, Spore Finance could have potential. The token is well-linked within the cryptocurrency industry but looks like it could take a long time to get to a meaningful price.
Cointracker has no confirmed market price or volume at this stage. The Spore Finance price is very small and liquidity is not amazing to be frank. Most transactions tend to be very small. It is currently available on Pancakeswap.
Yes there is potential for some big gains here, but it really depends on how many of the very similar projects you are already involved in.