Tomb Token: A Different Algorithmic Token

tl;drTomb Token is an algorithmic token from a developing ecosystem designed to bring liquidity and innovative use-cases to the Opera Network. The Tomb Token is not the only token of Tomb Finance, as it is a multi-token platform, including Tomb Shares and Tomb Bonds. TOMB is developed as a different algorithmic token with mind-blowing usages. Let’s explore the platform and its incredible token and decide if it is a smart investment in this bearish market.
Tomb Token: A Different Algorithmic Token
Tomb Token: A Different Algorithmic Token
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What Is Unique About Tomb Token?

The most significant feature that differentiates Tomb Token from other tokens is that it’s not pegged to a stablecoin but FTM. The reason behind this difference is Tomb Finance’s optimism about the future of Fantom Opera. This attitude makes Tomb Finance provide value to and receive value from FTM's possible growth. TOMB is meant to be the main medium for exchange on Fantom Opera, which will happen by creating a mirrored, liquid asset to FTM.

What Problems Does Tomb Token Solve?

Common algorithmic tokens face numerous challenges, including a lack of proper use cases. It means that the users of the platforms see no purpose in holding the tokens as they don’t do any specific function. So they ask themselves, why to bother holding the tokens?! To overcome this barrier and devise an incentive for the TOMB users to maintain the peg in the long-term, the Tomb Finance team concentrates on innovating new functionalities and use cases for the Tomb Token.

Why Use Tomb Token Instead of FTM?

When it is said that the Tomb Token is pegged to FTM, a question is raised that why we should use a token pegged to FTM instead of directly using FTM. The reason lies in the use-cases of FTM. For the Fantom blockchain to maintain speed, security, and cost-effectiveness, its validator nodes will keep depending on the FTM token to be staked and locked up. Also, FTM is intended to be the ideal means of sending and receiving payments that work as a decentralised alternative to stablescoins. In this situation, what will happen if the number of FTM tokens is insufficient to take care of all these uses? This is where TOMB comes into play! If the Tomb token can hold the peg, it will result in the creation of a mirrored, liquid asset that is easily used in transactions without limitations while enjoying the price appreciation of the native FTM token.

Why Should I Hold Tomb Token?

The main objective of the Tomb token is to be the utility token of the Fantom ecosystem and will start its mission by playing its role in FTMpad, Fantom’s first incubator and launchpad. The holders of (Tomb Shares) TSHARE and TOMB’s governance tokens will participate in decisions regarding the selection, development, and deployment of the next generation of Fantom DeFi projects.

Tomb Token
Tomb Token

Tomb Token and Other Tokens of the Platform

The medium of exchange is the role that Tomb Finance has tried to fill by the Tomb token. The protocol’s built-in stability mechanism strives to keep Tomb's peg to 1 Fantom (FTM) token in the long term. TOMB actively pegs using the algorithm, which means it won’t always be valued at one FTM, as it is not collateralised. TOMB has not meant to be a crypto or fiat-backed stablecoin. The other two tokens of the platform are called Tomb Shares (TSHARE) and Tomb Bonds (TBOND).

Tomb Shares Token (TSHARE)

Tomb Shares (TSHARE) can be used to measure the value of the TOMB Protocol and shareholder trust to keep Tomb token close to peg. During epoch expansions, mints TOMB is minted and distributed by the protocol among TSHARE holders in each epoch extension. The distribution happens to all the holders who have staked their tokens in the Masonry (boardroom). Also, the holders of the TSHARE tokens can vote on proposals to decide about the changes in the protocol and future use cases in the platform. Max supply of TSHARE token is 70000, which is distributed as follows:

  • DAO Allocation: 5500 TSHARE vested linearly for one year
  • Team Allocation: 5000 TSHARE vested linearly over a year

The rest of the tokens, i.e., 59500 TSHARE, are used to incentivise the LPs.

Tomb Bonds Token (TBOND)

Tomb Bonds (TBOND) token is mainly used to incentivise changes in TOMB supply during epoch contraction. Whenever the Time Weighted Average Price of Tomb Token falls below 1 FTM, the platform issues TBONDs, which can be bought with TOMB. Exchanging TOMB for TBOND burns TOMB tokens, i.e., it takes them out of circulation (deflation) to return the price to 1 FTM. If the price of the Tomb token exceeds the peg, the TBOND can be redeemed for TOMB, and an extra incentive will be given to the holders, which will add to inflation and sell pressure for TOMB when it is above the peg, helping to push it back toward one FTM.

Tomb Token Financial Analysis

Financial charts at Cryptologi.st indicate that Tomb Token holds the market cap rank of #755 among all the crypto projects in the market. Today, on Jul 2, 2022, the price of each Tomb Token is $0.039826969846 with a 24-hour trading volume of $328,128, which shows a -3.0% growth in the previous 24 hours. TOMB’s price is 99.8% lower than its all-time high of $17.82 on Jun 7, 2021, but 5.7% higher than its all-time low of $0.03780273 on Jun 18, 2022. Such a free fall from 17.82 to $0.03780273! But don’t forget that we’re in a bear market, and many projects have shown similar price trends. Tomb Token’s circulating supply is 310 Million TOMB coins, with a total supply of 310 Million. Currently, SpookySwap is one of the active exchanges to trade TOMB.

Is It Easy to Trade Tomb Token?

To answer this question, we need to check out the recent performance of the token. The liquidity score of Tomb Token is currently 36%, which is below the market’s average, making TOMB a hard sell in the bear market. Tomb Token is now held in 403 wallets, which have recorded 46,932 transactions so far. The more the number of wallets holding the token, the more reliable and popular it is. Tomb Token shows an ROI (Return on Investment) of -87% over the last year, meaning that your $100 investment in TOMB a year ago would result in losing $87, which is no way near a good investment. Tomb Token has not shown satisfactory performance compared to similar projects, with 1,408% growth in ROI over the same period. The following chart, retrieved from Cryptologi.st, indicates the Tomb Token’s market cap rank and price in the recent six months.

Tomb Token Market Cap Rank and Price In The Recent 6 Months
Tomb Token Market Cap Rank and Price In The Recent 6 Months

Disclaimer: Don’t take this article as financial advice. You need to DYOR (Do Your Own Research) before investment.

Tomb Token Price Prediction

Price predictions are never certain and cannot be used as our main source of crypto knowledge. That being said, price predictions from reliable sources can open our eyes to the experts’ opinions and paint a clearer picture of a token's future price in our minds. In the following sections, we’ll go through the prie predictions of Tomb Token in the coming years. Remember that they are not financial advice and won’t replace your personal research.

Tomb Token Price Prediction for 2022-2025

Crypto experts predict that the average trading price of each Tomb Token may reach $0.20 in 2022. The upward trend seems to continue to 2023, when TOMB may be traded at an average price of $0.27. The year 2024 can be a prosperous year for the Tomb Token as it is predicted that TOMB can see an average price of $0.40, a minimum value of $0.38, and a maximum price of $0.45. TOMB is anticipated to touch a maximum price of $0.66 by the end of 2025, with an average trading price revolving around $0.55 to $0.57.

What Is Tomb Token DAO?

Tomb DAO fund is managed by the Tomb Finance developers to conduct buybacks and work as a reserve to help maintain the peg. The DAO fund, together with the Bond Mechanism, is the platform’s second line of defence. The management of the DAO fund is by the platform's developers. It is intended to turn into a governance system to vote on using funds in some stages of the project and other aspects, including investment, marketing, etc. To learn the details of the Tomb Token DAO, visit here.

Is Tomb Token A Good Investment?

Tomb Token platform aims to increase the liquidity for the Fantom ecosystem and improve the use-cases. The popularity of the network is growing on social media, with 105% on Twitter and 58% on Telegram over the recent six months. However, the ROI and liquidity score show that it can’t be a short-term investment, and you need to wait for its future in the coming bull run. Now that the market is experiencing a downward trend, it’s a good time to work on our knowledge of different projects by reading authentic reviews of the top 1500 projects, comparing the projects using a free screening tool, and observing the changes in the projects by having them listed on our watchlist. You find all that and many more here at Cryptologi.st. Follow us on social media to stay updated about the crypto market.

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