WAX Jumps 21% as Staking Rewards Near; Double Your Money in 3 Years?
The blockchain gaming altcoin, WAX, grew by over 21% in value leading into Saturday, as the build up towards its mainnet launch commences.
The launch of the mainnet will see the project leave EOS/Ethereum for its own blockchain, and will be accompanied by the release of limited availability staking tokens. When the token swap goes ahead on June 30th, only the tokens swapped during a specified window will be eligible for staking rewards.
This, coupled with the promise to double staked tokens over a course of 3 years, may be contributing to WAX’s current ascension.
Genesis Staking: Double Your Coins in 3 Years?
According to this official blog post, the mainnet and token swap will begin on June 30th, and end on August 30th, 2019. During this time, anyone with ERC-20 WAX tokens can send them to a specified ‘burn address’, and an equivalent portion of the new Genesis WAX Protocol Tokens will be returned to them.
These tokens will then be staked for 3 years, during which time the daily staking rewards will amount to a 100% return on your initial stake. From the post:
“Each staked Genesis WAX Protocol Token will produce one WAX Protocol Token as a GBM reward over the course of 3 years (i.e. one staked Genesis WAX Protocol Token will produce 1/1096 of a WAX Protocol Token each day for 1,096 days).”
Obviously there’s no telling what the value of one WAX token will be in a few years time, but the prospect of doubling your coin haul over a such a short period is one rarely seen in the crypto space.
“By leaving your Genesis WAX Protocol Tokens uninterruptedly staked for 3 years, you will double your WAX Protocol Tokens.”
Referred to as the Genesis Block Member (GBM) program, holders of these coins will receive more staking rewards than the standard WAX tokens which will be released after the token swap ends. According to the post, the GBM program will:
“…encourage civic engagement and reward our long-term-oriented WAX community members.”
WAX Price – WAX/USD
By Saturday morning the value of WAX had jumped by 21.8%, from $0.064000 up to $0.077958.
Despite the sudden jump, the token is still some way off the monthly high of over $0.09. The recent market dip wiped more than 30% from WAX’s value, and Saturday morning’s surge recovered a mere third of those losses.
CoinMarketCap reports just over $1 million worth of daily trades, with the highest concentration coming from Bittrex’s WAX/BTC pair. Conservatively sourced data from OpenMarketCap places true volume at around the same, suggesting most of the token’s numbers can be trusted on the day.
One possible alternative to the reasons suggested for WAX’s fast rebound could be the overnight trading session on (fake exchange) Bithumb, where the spot price spiked to above $0.08.
If doubling a stake in WAX sounds attractive to you, I suggest buying as early as possible. Not only will others be aiming to get in on the GBM program, but whales will also likely be accumulating WAX in the hope of dumping once the hype peaks. Unless the broader market pulls WAX down with it, I expect the token price to only rise between here and June 30th.
(Note: WAX originally launched on Ethereum, before moving their testnet to the EOS blockchain in 2018)
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.