A Storm of Shitcoins
Over the last few weeks, their has been a literal STORM of epic proportions on the Binance Smart Chain network; I'm talking about the infinite variants of baby-token, shiba-inu-token, or whatever else you want to call them.
I've spent a good 2 weeks just watching these, just looking at them it's obvious that 99% of them are scams; It takes someone with a good eye to spot a project that ISN'T a scam under these conditions. I'm not really an expert, and this article should NOT be looked to for any financial advice, but I wanted to share one of the few NOT scams I found, and how I bolstered my confidence in this project enough to actually have made a decent call.
Finding a decent project in these conditions is like trying to find the Rickest Rick
First a little intro into this crypto token, KittyCake token offers what is called 'reflections' on each transaction to people who hold their token (KCAKE) in their wallets, in proportion to how much they hold. What does that mean? That means that about once an hour (depending on volume), you get a reward of Pancake Swaps CAKE token directly in your wallet; no action necessary! The tokenomics of KittyCake are as follows:
What the above numbers mean is that, whenever a transaction takes place (buy/sell/send/receive/etc), a total of 16% of that transaction is taxed and distributed to the holders as a reward (10%), put into the liquidity pool to help fund transactions (2%), put into the dev teams marketing fund to help promote the token (3%), and a small fee (1%) that is burned.
Contract Address: 0xc22e8114818a918260662375450e19ac73d32852
All in all it really isn't that much different, tokenomically than many of the scam tokens (*COUGH* BabyUni *COUGH*); so what made me take notice of KittyCake?
- Verified Contract on BSCSCan - (link)
Now honestly this doesn't mean jack diddly crap to me, but having the contract code there for me to see easily, and verified at least lets me look under the hood for anything weird.
- Locked Liquidity - (link)
Their liquidity is also locked for supposedly a year but the timer only says 5 months. This also didn’t mean much to me, as I’d seen several projects with locked liquidity rugpull, but it is a good sign regardless.
- Live Website - (link)
Their website was up and running PRIOR to the token launching, I've made plenty of websites so looking at the source I didn't see anything weird either to me. It didn't seem like a copy-paste of anything else I'd seen up to that point. It looked like the original work, and I noticed that.
- Audited - (link)
This is the really really really big one. They were audited PRIOR to launch. Now I don't know about you, but something that doesn't scream scam is a project getting audited, especially by a service I find reputable! Only ONE other project, out of 50-100 I looked at, was audited; just one.
Seeing that they've passed an audit was a major 🟢GREEN flag for me, along with the other 2 points; When you're going to support a new project, seeing this amount of preparation makes a big case to the project being very legitimate.
The Future of KittyCake
At the time of this writing, KCAKE is valued at $.0001 USD, from a launch-time low of $.00000748 USD, a whopping 1,441% gains! Their future roadmap is available on their website but one of my favorite points from it is this final one:
- Explore centralized exchange integration -- CEXs will have difficulties with decentralized reward systems, we will work with them
Remembering DRIP! Coin
I’m absolutely certain 0 of you made the mistake I did of buying into a coin 2-3 years ago called DRIP! Coin this shitcoin was a LOT like these reflection rewards tokens; I also threw a similar amount of money into it trying to earn rewards. It got listed on several exchanges too! It was looking pretty decent!
What happened? Well essentially the exchanges did NOT like all the microtransactions occurring with DRIP and decided to pull the plug. The developer, not wanting to do the work to make his coin succeed (lone developer, that’s a major 🔴red flag there), sold his stack and ghosted us all. Leaving me with .0001% of what I put in #feelsbadman
This is where I feel like KittyCake can succeed! Smart contracts can help bridge the gap in a way that keeps both parties happy and I look forward to seeing what they do with that!
Should I invest in KittyCake?🤔
This article is not intended as financial advice, do your own research into it; my research shouldn’t really be looked at as a shortcut since at the beginning I flat out say I’m an idiot. If you believe this project can go places and my evidence is sound, then you know what to do!
A final point of discussion
One thing I wonder is how the rewards will work in the future. The reward system depends entirely on volume, so if there’s a lot of trading volume then equally there are a lot of rewards; but those same rewards incentivise holding over selling. So what happens in the extreme case when everyone who will hold KCAKE is holding KCAKE? Obviously the rewards will drop off, prompting some people to sell, generating volume, generating rewards, prompting some people to buy and hold and returning back to the start. It’s REALLY interesting to me that the price could potentially enter a period where the rewards system regulates the token price.
One of the roadmap items is staking and other rewards, so I’m sure the team has some good ideas on how to keep that volume up to a level that will generally be rewarding for everyone. The future for KittyCake is very bright indeed!