Locking $500 million in 4 hours, Kimchi (KIMCHI) continues the madness of Sushi (SUSHI), and Degenfi ​​bombards the market

Overview

• A new token has nearly $500 million in value locked up just hours after it began trading.

• Kimchi (KIMCHI) is a fork of sushi (SUSHI).

• The project claims that it “could be the next hot DeFi mining token.”

If you haven’t heard of KIMCHI, the DeFi mining token, it’s because it didn’t exist yesterday. Four hours after its launch, KIMCHI’s locked value reached nearly $500 million.

Its growth trajectory mirrors that of other recent DeFi projects, most notably Yam, which saw its token surge to $150 in just a few days before plummeting to $0 within 48 hours.

Kimchi Token is a fork of Yuno and Sushi, which is a fork of Uniswap.

Kimchi is such a new token that it’s hard to pinpoint how exactly it differs from Sushi, the eponymous token that Sushiswap launched as an incentive for people to contribute liquidity to the platform.

The platform also gives a portion of transaction fees to users who lock their tokens in smart contracts, meaning they cannot use them for a certain period of time.

KIMCHI allows users to deposit ETH, SUSHI, TEND, USDT, or Uniswap assets to earn outrageous interest (up to 66,000% APY, according to the platform) to generate liquidity for the platform. Since its launch today, the market capitalization of the KIMCHI token has exceeded $44 million.

Just this past weekend, DeFi locked up $8 billion, which means people want to earn income from their crypto holdings. It’s also clear that people are willing to jump into new protocols with little to no information.

There is no doubt that using the KIMCHI protocol is a high-risk investment decision. The KIMCHI protocol uses unaudited smart contracts.

Apart from mentioning that "Kimchi may become the next popular DeFi mining token," the official website of Kimchi did not disclose any further information.

More curious users can look at the token contract, but only if they understand it. Part of the appeal of these tokens seems to be the fun of getting in on the next hot thing quickly before it becomes a hit.

It's a bit like playing the game of hot... yam. But with millions of dollars at stake.

With the popularity of liquidity mining, more and more pseudo-DeFi projects have set off a wave of FOMO in the market . Many of them have not undergone code audits and have no actual value. In fact, it is a regression. The overseas community calls such projects "degenfi."

Invest with caution. Make sure you understand the situation and are able to bear the losses before investing.