Meme coin or utility?
by Ralf Passing | @ralfpassing on X
The coin $HOSP Hospium, launched on the #Defichain Metachain, currently the EVM-Layer, had a rapid start in the first two days despite the lack of EVM transfer activation in the Defichain Lightwallet, gaining over 100 percent. As the first smart contract-controlled coin project, a comparative analysis with Memecoins on Ethereum or their own chains is logical.
The market capitalization of Memecoins ranges up to $16 billion (Doge) – even the number 5 has a market capitalization of $278 million – and these coins often have „terrible“ tokenomics, with founders profiting and dumping their free coins after a rise.
This is completely different with $HOSP!
1) The coin supply is not unlimited, as is the case with most meme coins.
2) It is an anonymously developed project from the #Defichain community, where the founders do not receive free $HOSP!
3) One-third of the proceeds from issuing new #Hospium coins are used to increase liquidity on #Vanillaswap, reducing the risk of a „pump and dump“ scheme.
4) Two-thirds of the proceeds are used in DUSD to burn it. This scarcity naturally leads to rising prices of DUSD in the long term.
5) Due to point 4, the buyer of $HOSP earns even if the price of Hospium to DUSD does not rise, as the purchase increases the value of DUSD, and thus, in the long term, the price.
The crucial criterion for the success of a Memecoin is a large community – with 1.6 million followers, #Defichain has the largest community on #coinmarketcap! Since there are no founder coins, selling freely received coins is not possible, and with the regularly increased liquidity on the DEX from the issuance of $HOSP, an exit is always possible.
Therefore, every $DUSD holder should consider investing a portion of their DUSD in $HOSP on the EVM-Layer.
If everyone invests only 10 percent of their DUSD in HOSP, over 12 million DUSD would be burned (there are 189 million DUSD) – the value of DUSD would thus increase by 6.7 percent – and possibly much more. Simultaneously, the price of Hospium would rise multiple times. So, you earn double!
It is essential to compare the price between the smart contract on hospium.vercel.app and vanillaswap.org to get the best price. If the price on Vanillaswap is higher, it will likely be quickly arbitrated and adjusted. Sometimes, however, it may be lower…
Note: As always, this is only my personal opinion and not financial advice. I have bought Hospium myself (between 0.86 HOSP/DUSD and currently 0.42 HOSP/DUSD) and will continue to buy $HOSP with my earnings from the looped Vaults, so I could also benefit if someone follows my arguments.