Apr 28, 2023 at 06:44Rari GovernanceToken (RGT) rose by more than 1200% in the last 24 hours, and trading volume was more than 31,000%. Such data can cause FOMO but does not exclude the possibility that the enormous figures do not carry the opportunity to earn, but on the contrary, only to lose the invested funds. Let’s look into what this project is and why it started to grow, after seven months of sleep.
#528: What is Rari Governance Token?
Rari Governance Token is a native Rari Capital coin, a lending, borrowing, and yield DeFi protocol. The product team offers a set of tools that are designed for a wide range of decentralized finance user profiles.
According to the information gathered, the platform offers several liquidity pools. Each of these users charges a supported token, and in return, they receive a token that earns interest. The process occurs in such a way that a special yield aggregator searches for the highest yield using a set of protocols with security assessments. In this way, users can withdraw their savings at any time.
According to the official website, the project offers “infinite possibilities,” opening the world to financial innovation, among them:
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- Earn. Users can deposit crypto-assets to automatically begin earning the highest yield.
- Fuse. An open interest rate protocol, which works with any cryptocurrencies.
On the project, RGT acts as a Rari Capital management token, as well as the primary currency that allows holders to earn income from their contributions to the liquidity pool. Here are the main examples of RGT usage.
- Governance. The token holders can participate in voting on-chain governance.
- Liquidity mining. Users can contribute to the LP on decentralized exchanges to earn liquidity mining rewards and a share of the DEX transaction fees.
The first minting of RGT took place in 2021, with 2.5M coins issued initially and another 7.5M planned over the next three years. The total supply was to be 10M, which would go to the Rari DAO treasury. However, as of February 2022, RGT’s max supply was 12.5M, and the circulating supply, according to CoinMarketCap, is 12,472,026 coins.
Currently, RGT is ranked 528th by market capitalization ($29,239,157) and appears to still be operating. However, according to the official Twitter page, the developers of Rari abandoned the project in October 2022.
A proposal to deprecate Rari Capital governance is live. This is the last necessary action to deprecate all Rari Capital protocols. Tribe delegates can vote here.https://t.co/0MPnsDoMX1
— Rari Capital (@RariCapital) October 13, 2022
100% of community members voted to end support for the Rari Governance Token.
What’s going on with the RGT price?
On April 27, the value of RGT began to rise suddenly, with no clear reason for the increase. As of writing, RGT is trading at $2.3295, which represents a 1,172.22% increase from the previous day. The daily high reached $2.6756, which is a more than 1300% increase.
Looking at the chart on CoinMarketCap, this doesn’t appear to be the first significant rise for the token. RGT reached its all-time high in 2021 on November 8, when it could be sold for $48.57. If someone had bought in at the beginning and sold at the peak, they would have earned 78 times their initial investment.
One thing is that if before the price increase could be related to the active development of the project, now it is not justified by anything. At least in the news feed for the last 24 hours there is no mention of RGT.
According to users Mike: The Username, there is a reason for what is happening with the price of the Rari Gvernance Token, and “something big is coming.”
“I feel like something big is coming. Something involving the words ‘market’ and ‘maniulation’. I cannot put my finger on why. Let’s see what happens because $0.21 to $1.2 rise isn’t an unintentional bump up,” he said.
Whether it is true or not, investing in this project now looks like a doubtful venture. Do it only at your own risk and do your own research. Here’s what one CoinMarketCap user says about this project.
The fact that the project is not working now confirms the trader and investor yourfriendSOMMI. He also noticed that the token began to actively grow, but he checked the project’s historical charts. So, the expert found that earlier RGT collapsed by 99,8%, after which the team abandoned the project in 2022 and declared it a “failure.”
❤💛💚💙$RGT just popped up +1000% in an hour…
But then I checked its historical chart.
It’s down -99.8% and has been abandoned.
RGT was a coin I liked back in 2021 bull market, but it hit the target at the top.
The team abandoned it in 2022 and declared it a ‘failure’ pic.twitter.com/IOx9Y14Qjf
— yourfriendSOMMI ❤️💛💚💙 (@yourfriendSOMMI) April 27, 2023
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