TONIC is the native token of the Tectonic protocol that operates lending and borrowing services in the decentralized finance (DeFi) space. Since it is a relatively new token, investors should be cautious of price action volatility if deciding to buy TONIC.
Wondering if TONIC is another meme token or if it could be a legitimate project? Here’s the full breakdown of Tectonic cryptocurrency.
What Is Tectonic Crypto?
TONIC is a cryptocurrency token that launched in December 2021. The total supply is 500 trillion and the price of one TONIC is a tiny fraction of a cent. Based on the current token economics — or tokenomics — the distribution works out as follows:
- 23% goes to the Tectonic team
- 13% goes to the ecosystem reserve
- 13% goes toward network security and maintenance
- 50.9% is dedicated to community incentives and rewards
The platform permits two core functions: lending and borrowing. Suppliers can earn passive income from their assets on the platform. Users can borrow cryptocurrency assets for functions such as staking, yield farming and short-term trading by pledging their own assets as collateral.
Tectonic currently supports eight crypto assets for lending and borrowing: trueUSD (TUSD), dai stablecoin (DAI), tether (USDT), USD coin (USDC), wrapped bitcoin (WBTC), wrapped ethereum (WETH), tectonic (TONIC) and cronos (CRO).
But where does the TONIC token come into this? Currently, there’s actually no real use case for the token besides lending and borrowing. Tectonic has introduced staking to reward token holders, secure the network, support the growth of the ecosystem and give TONIC utility in the future.
Is Tectonic Crypto Legitimate?
The Tectonic protocol is a fork of the Compound protocol, which has been noted as one of the most secure protocols. Tectonic’s dealings have also been audited by Slowmist, a blockchain ecosystem security company.
The Tectonic platform and the TONIC token itself are very early on in their development, however. The token utility is questionable at present, and buying TONIC carries extreme risk.
Tectonic Crypto Price Prediction
Average price estimates for TONIC have been made by two crypto price forecasters: Telegaon and CryptoPredictions.com. Both companies use up-to-date market data to configure their price predictions. Please note the predictions given below represent each company’s average, calculated from high and low estimates.
|Year||Telegaon Price Estimate||CryptoPredictions.com Estimate|
Is Tectonic Crypto a Good Investment?
TONIC is one of the cheapest tokens to buy — more than one billion tokens can be purchased for less than $150 at current market prices. That does not mean TONIC will appreciate significantly in value, however, and investors should approach with caution.
On the other hand, if the current crypto market downturn subsides and the Tectonic protocol establishes initiatives to increase demand for the TONIC token, the price could increase dramatically.
As with all investing, never invest more on TONIC than you are prepared to lose.
Where Can I Buy Tectonic Crypto?
TONIC can only be bought from three exchanges. These are:
- VVS Finance
Another exchange people can buy TONIC on is HotBit.
However, HotBit has suspended transactions for the foreseeable future due to a criminal investigation involving a former employee, which resulted in the freezing of some of HotBit’s funds, according to announcements on the company’s website and a report from CoinDesk.
Alternatively, there is an option to buy TONIC from a decentralized exchange, VVS Finance, using WCRO, VVS, USDC and USDT.
Anyone considering buying the TONIC token should remain skeptical for the time being. Investors may want to see how the outlined plan unfolds and if adoption picks up before they buy.
Tectonic Crypto FAQHere are some questions people ask about Tectonic (TONIC) cryptocurrency.
- Does Tectonic crypto have a future?
- The Tectonic protocol has outlined how TONIC will be used for staking in the future. For now, it has limited utility.
- What is Tectonic crypto?
- The Tectonic protocol is a DeFi protocol for lending and borrowing. Its native governance token is TONIC.
- Does a Tectonic coin have value?
- The value of the TONIC token has largely been untested – so far, the value of one TONIC token remains well under $0.01. Use cases are limited as it stands, but staking initiatives could increase demand for the token in the future.
- Is Tectonic crypto a good investment?
- The Tectonic protocol and TONIC token are still early in their development. The potential upside or downside is unknown, but volatile price action should be expected.
Daria Uhlig contributed to the reporting for this article.
Information is accurate as of Sept. 7, 2022, and subject to change.
This article originally appeared on GOBankingRates.com: Tectonic (TONIC) Crypto: What Is It and Should You Invest?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.