Interestingly, the creators of Titano (TITANO) make ludicrous claims about their cryptocurrency while telling the truth.
For example, Titano’s website admits: “a true store of value doesn’t exist – yet.” They describe a store of value as an asset that is stable or increases in value.
I think a perfect store of value is a fantasy. To explain, all assets can lose value and most assets are vulnerable to inflation. A US dollar stablecoin; such as Tether (USDT), suffers from the same inflation as the US dollar, for example. If the dollar loses value, Tether loses value.
Other assets, such as gold, Bitcoin (BTC), stocks, and bonds, exist at the mercy of the market. The only value Bitcoin and gold have is the interest Mr. Market has in them. If Mr. Market stops buying Bitcoin or gold those assets will lose all their value.
Titano’s Ludicrous Claim
The ludicrous claim Titano’s builders make is that you can earn up to $1.003 million in Titano. Moreover, they claim Titano (TITANO) offers an annual percentage yield (APY) of 102,483.58%.
I think this claim is bullshit. Moreover, I predict this claim will get Titano in trouble with the US Securities and Exchange Commission (SEC) and other financial regulators. To elaborate, I believe the claim is bullshit because it sounds too good to be true.
What is Titano (TITANO)?
Okay, so what is Titano (TITANO) and how does it work? Titano is a BEP-20 Token. A BEP-20 is a Binance Smart Chain cryptocurrency that operates on ERC-20; the most common Ethereum token standard.
A BEP-20 token can be a native asset, a synthetic asset, or a pegged token. A pegged token such as a stablecoin they peg to an asset such as a fiat currency.
The Titano stablecoin contains a decentralized app (dApp) that rewards token holders with compounding interest. Compound or compounding interest is interest you earn on both the principal and interest of an investment.
To explain, most instruments only pay interest on the principal or initial investment. However, you earn compound interest on both the interest and the initial investment. Theoretically, compound interest increases your earnings over time because the amount you earn interest on increases.
Titano Burns Tokens
Titano (TITANO) is a deflationary token. The operators of a deflationary token try to prevent inflation by burning part of their tokens.
For example, they claim to have burned over $845,000 worth of TITANO on 15 December 2021 and over $1 million worth of TITANO on 10 December 2021. Currently, Titano is trying to control inflation with weekly burns.
Additionally, they are promoting Titano by giving away enormous amounts of TITANO. For example, the Titano Christmas Contest featured an Xmas Prize of $2,000 in TITANO.
How Titano Earns Interest
Thus, Titano earns interest on the APY. Consequently, they call Titano the first cryptocurrency with 100% Staking APY. In detail, all TITANO minted for staking rewards have backing from the reserve in Titano’s Treasury.
The hope is that Titano holdings and the Treasury will grow. Titano will automatically save the rewards in the Treasury, compounding Titano’s earnings.
They claim Titano has an automatic liquidity protocol (LP) that uses 5% of trading fees to ensure Titano’s collateral value. The website claims Titano’s liquidity is safe, because the Titano LP is owned and protected by Titano itself.
They put 3% of TITANO purchases and 8% of TITANO sales into the treasury to support risk free value (RFV). Note: I think risk free value is bullshit. All financial activity is risky. Anybody who claims that anything is risk free is a fraudster.
However, Titano’s builders claim they can offer Risk Free Value by redirecting 5% of trading fees to RFV. I think this is impossible because there is no way to eliminate risk.
What Value Does Titano Have?
Conversely, Mr. Market believes some of Titano’s claims. For instance, Titano (TITANO) was CoinMarketCap’s ninth most trending cryptocurrency on 25 December 2021.
Conversely, CoinMarketCap estimated Titano was the 3,078th largest cryptocurrency on 28 December 2021. In detail, CoinMarketCap gave Titano a 7.998¢ Coin Price, a $65.585 million Market Cap, an $86.375 million Diluted Market Cap, and a 24-Hour Market Volume of $2.106 million on 28 December 2021. They based those numbers on a Self-Reported Circulating Supply of 829.116 million TITANO and a Total Supply and a Maximum Supply of 835.155 million.
In contrast, Coinbase gave Titano a Coin Price of 7.75¢, and a 24-Hour Market Volume of $2.1 million on 28 December 2021. I think Titano is vulnerable to inflation because Coinbase gave Titano an all-time high Coin Price of 10¢.
In the final analysis, I consider Titano (TITANO) an interesting cryptocurrency with some fascinating features that could make money. However, I think the ridiculous claims the creators make about Titano destroy its value. I advise speculators to stay from Titano because I predict the creators’ ludicrous claims will attract the attention of financial regulators and create legal problems.
Originally published at https://marketmadhouse.com on December 27, 2021.