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- ONDO has dominated conversations in crypto circles as the token has surged over 2,500% since its unlock.
Ever so often in the crypto space, a new token emerges to capture the imaginations of crypto speculators.
In the latest instance, the new talk of the crypto town is a token called ONDO. The token has witnessed a staggering 2,500% rise following its unlock.
In this article, we explore what ONDO is and why crypto community members are excited by the token’s prospects.
What Is The ONDO Token?
ONDO is the native token of Ondo Finance, a Coinbase-backed securities tokenization project that is promoted as offering better liquidity than traditional markets.
It is also the native token of Flux Finance, a lending protocol built to allow DeFi natives a piece of the action by getting yields for lending their stablecoins to qualified investors who use the stablecoins to gain exposure to Ondo’s tokenized securities.
While a percentage of the token’s supply had already been in circulation largely thanks to a “Community Access Sale” that reportedly saw participation from 18,000 community members, these tokens were not transferable until a recent unlock on Thursday, January 18, effectively creating a market for them.
See Also: Ondo Foundation To Unlock And Release ONDO Token Soon
Following the token unlock, ONDO has already been listed for trading on exchanges like Bybit, KuCoin, and MEXC, with Coinbase also announcing listing plans.
The Function Of The ONDO Token?
ONDO primarily serves as the governance token for ONDO DAO, which oversees changes to Flux Finance.
Given the utility of ONDO and the growing excitement over tokenization as an emerging crypto narrative, it is unsurprising that the token has quickly gained significant attention.
Still, the asset’s 2,500% jump from $0.01 at unlock to over $0.26 at the time of writing deserves a deeper dive, as utility might not be the only reason for the recent speculation surrounding the token.
ONDO Airdrops?
Per the project’s tokenomics, 52.1% of ONDO’s 10 billion supply has been allocated for “Ecosystem Growth,” including incentives like airdrops.
To this end, the Ondo Foundation, tasked with growing the ecosystem, had established a points program, offering rewards for actions like holding on to ONDO and participating in governance.
ONDO has an estimated 1.4 billion tokens in circulation with a market cap of over $378 million, per CoinGecko data at the time of writing.
It’s important to note that Ondo Finance’s 45.9% token allocation to core contributors and investors has attracted flak from some crypto community members.
Prominent crypto analyst “Duo Nine” slammed it as a ploy to “milk retail.” More so, gains like the ones experienced by ONDO after the unlock are rarely sustainable.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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