Food-themed tokens have been around for a while in the cryptocurrency world. Every delectable food item, from pizza and burgers to yam and kimchi, has a DeFi token attached to its name. However, these tokens have only been present in the last few days.
Almost all of the above tokens have more than doubled in value since July 20th. The price of a BURGER increased from $3.05 to $6.46. During the same time period, the price of SUSHI increased from $6.2 to $10; the price of CAKE increased from $10 to $18, the price of PIZZA increased from $0.1 to $0.2, the price of YAM increased from $0.48 to $0.82, and the price of KIMCHI increased from $0.00020 to $0.000336.
Have you ever come across these tokens before?
SushiSwap has arguably already carved out a niche in the DeFi space. This community-driven DeFi liquidity pool platform compensates liquidity providers. However, the protocol is not very democratic, and users do not always have a say in governance issues. In that regard, BurgerSwap is far more democratic. Users have a voice and the ability to vote. In fact, they are rewarded for exercising their voting rights.
Yam Finance, too, promotes decentralized governance, with YAM HODLers deciding the future via on-chain voting. Its treasury has also been expanding at an impressive rate recently. YAM tokens, interestingly, have an elastic supply that expands and contracts in response to market conditions. There are over 10 million PIZZA tokens in circulation and over 10 million in supply. Users can also trade on the Pizza DEX and participate in the Pizza DEX’s exclusive stablecoin investment program.
KIMCHI, like SushiSwap, rewards users for providing liquidity. PancakeSwap, on the other hand, allows users to exchange tokens, provide liquidity through farming, and earn returns. Users of CAKE can also participate in lotteries and NFTs.
So, are these tokens worth betting on?
As a result, the volumes of these tokens have begun to rise noticeably. In fact, at the time of writing, the volume of BURGER was valued at $18.09 million, while SUSHI and CAKE were valued at $262.51 million and $427.17 million, respectively. Volumes of KIMCHI, YAM, and PIZZA have also been increasing.
Money is clearly being poured into these projects, and they appear to be compelling short-term investments at this point. Traders can expect to make a buck or two until the craze dies down. If the buzz grows in the coming weeks, these food-themed tokens could become the next big thing in the DeFi world.
However, much like CAKE, the identities of the majority of the other projects’ founders are unknown. Various rug-pulls and ponzi schemes have resurfaced out of nowhere in the ecosystem. As a result, long-term investors must be wary of potential red flags and consider the sustainability factor before making a decision.