Welcome to the Staking and Dividend Systematic Review series.
In this series we will analyse different types of cryptocurrencies and their staking/dividend potentials. All posts in this blog will have a similar setup. Every post will begin with this introduction, so feel free to skip ahead if you have already read this. Second, we will describe the cryptocurrency in a brief overview. This will be done by discussing the essential idea behind the coin and the highs, and lows in the past year and all time. Afterwards an analysis on the dividend distribution will be done which will be followed by several examples. Lastly a conclusion will be given to the cryptocurrency combined with my opinion on whether or not you should hold this coin. From this point forward, all rewards will be addressed as dividends, regardless of their origins.
N.B. This blogpost references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Always do your own research.
Fantom
Fantom is a DAG-based platform which claims to have unparalleled speeds, security and reliability. Where other networks fail to scale, Fantom aims to surpass these networks via Lachesis, its high speed consensus mechanisms. With its modular architecture, it becomes easy to build a customizable network. The network uses proof-of-stake for its security and this is where the staking rewards come from. Currently users can stake via delegation or validation, just like other PoS networks.
The all time high of FTM was $0,03879266, roughly a year ago and the all time low was $0,00190227 which was 4 months ago. Currently FTM is trading at $0,00580142.
Dividend
The staking rewards of Fantom are very high, close to 35% per year. When you adjust the payout for the inflation of the currency, you can still expect a ROI of 13%. Staking FTM is quite simple if you use the official wallet. Once you've downloaded the official wallet(or made a web wallet and logged in, you simply press stake, pick a validator and enter your amount of FTM for staking. Unstaking is just as simple, just be aware that your FTM will be released after 7 days.
Example: If you stake 10k FTM for roughly $58, you can expect around 3500 FTM per year or $20 with the current price.
Example 2: If you stake 8,571 FTM for $50, you can expect around 3k FTM per year or $17.50 with the current price.
Conclusion
Is it worth it to stake FTM? With the current rewards FTM might seem like a yes. However, FTM is fairly young and has yet to prove itself. Nevertheless, might it be worth to take the risk with a smaller amount of FTM. So yes, FTM would be a great coin to stake. Just be sure to diversify your risks.
Am I staking FTM?
Not yet, but I will stake some soon. Here is my address 0xb3e430c9E5058a0C9Dd26C05a4fD957190aCbd91 in case you are curious or if you want to tip me.
Curious to find out which coins are HODLs? Stay tuned for the next blog post. Spoiler alert: the next post will also cover a coin with an APR of over 20%.
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