Tectonic crypto: Is it a good investment?
Tectonic, a cryptocurrency lending and borrowing DeFi platform, was launched in 2021. Operating as a market protocol, users can borrow and lend digital assets while earning high yields. The platform's protocol is built on the Cronos blockchain, a project developed by Crypto.com, one of the leading exchanges.
Over the past two years, the project and its native token have garnered significant attention in the market. If you are contemplating whether Tectonic crypto suits your needs, this article is tailored for you.
What is Tectonic crypto (TONIC)?
TONIC serves as the native token of the Tectonic DeFi platform and is pivotal in facilitating instant loans. As a CRC20 token, it governs various protocol aspects, encompassing network security and maintenance. Moreover, the lending platform utilises TONIC tokens to incentivize users, with a portion allocated to the project team.
Acquiring TONIC tokens is possible through several avenues, which include:
By participating as a lender or borrower on Tectonic, you have the opportunity to earn TONIC tokens as liquidity incentives.
Users can generate revenue via the protocol by staking TONIC tokens to obtain xTonic.
Tectonic offers a Vault feature where you can lock your tokens and earn rewards in return.
TONIC tokens can be purchased from various exchanges, such as Hotbit, Crypto.com, or VVS Finance, where they are listed for trading.
## Tectonic crypto tokenomics
The Tectonic money market has introduced a total of 500 trillion TONIC tokens. According to CoinMarketCap, there are currently 224,918,813,284,285 TONIC tokens circulating in the market, with a market capitalization of $34 million. It's important to note that the project reported this data and it has not been independently verified.
The 500 trillion tokens are distributed among various categories by the project developers. The largest portion, accounting for 50.9%, is allocated as incentives for community members participating in staking and liquidity mining. The second largest segment, comprising 23%, is reserved for the project's team.
Furthermore, 13% of the tokens are designated for ecosystem reserves, which will be used for developmental initiatives within the ecosystem. Another 13% is allocated for network security and maintenance. Finally, 0.1% is set aside for TONIC token airdrops.
Is Tectonic crypto legit?
Tectonic crypto demonstrates legitimacy through its development as a fork of the reputable Compound protocol, renowned for its strong security measures.
The project has undergone audits by leading blockchain security auditors, including Slowmist and BlockSec, ensuring the integrity of its smart contract and operating model. The most recent audit report was published in April 2023.
In addition to prioritising smart contract security, the project developers are also working towards introducing an insurance fund. To facilitate this, 10% of the interest paid by borrowers will be allocated to the fund. The purpose of this fund is to provide coverage for defaulted loans when the collateral is insufficient. These measures indicate that Tectonic crypto is operating legitimately.
However, there are a few aspects that raise concerns among investors. Firstly, there is the issue of unverifiable data, including figures such as market capitalization and circulating supply. Secondly, Tectonic is an unregulated asset only available on limited exchanges. As a result, investments in Tectonic carry a high level of risk.
## Tectonic crypto price prediction
According to price forecasts provided by CoinCodex, the sentiment for the TONIC crypto is currently bearish, with a neutral fear and greed index. The prediction suggests that the price of TONIC may drop to $0.00000008539 in the next month, representing a decline of over 44%. CoinCodex analytics indicate that more than 24 technical analysis indicators show bearish signals, while only 6 indicate bullishness.
Looking at long-term price predictions, DigitalCoinPrice forecasts that the coin will average around $0.000000327 throughout 2023. The highest projected price for the crypto is anticipated to be $0.000000332, with a potential lowest value of $0.000000136.
Predictions for 2025 suggest that the coin's price may increase to $0.000000520, with a maximum potential of $0.000000556. The projected minimum value for TONIC in 2025 is $0.000000450.
If we consider the growth of TONIC until 2030, the forecast from DigitalCoinPrice suggests it may reach up to $0.00000158. The average price is expected to be $0.00000154, with a potential minimum value of $0.00000148.
Is there a future for Tectonic crypto?
Tectonic is a relatively new DeFi project still in its early stages. Unfortunately, current price predictions and market trends paint a discouraging picture. The price of TONIC is currently below its 200-day and 50-day simple moving averages, indicating a bearish trend. Forecasts suggest a significant 44% price decline in the next month. Looking ahead to 2030, it is doubtful that the coin will reach a value of 1 cent.
Several factors contribute to the coin's low price and lack of demand. The absence of a clearly defined utility for the token limits investor interest. Additionally, the need for verified data and numerous underdeveloped features raise suspicions about the project.
Given the decline in trust within the cryptocurrency lending industry following the Celsius network's downfall, investing in TONIC remains risky unless the project developers address these issues.
Author: Wasay Ali
Wasay Ali is a versatile professional writer with global experience and a background in mechanical engineering and social science. He is adept at crafting news and informational content for the crypto space and has experience writing for other niches. He is a professional SEO content writer who has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe. He is a dedicated volunteer and enjoys reading, writing, poetry, and going to the gym. He is an INFJ-A personality type dedicated to positively impacting the world. Wasay has a passion for writing as it allows him to express his creativity, share his knowledge, and connect with people worldwide.