I feel depressed right now. Just writing this article feels depressing. In the last seven days, every single rebase token protocol included in our experiment ended up producing a loss in value. Not ONE single protocol managed to close the last seven days with a positive number. The worst of them all is KlimaDAO, a protocol that actually traded at above $2000 per token in October. What is the current price of the token? You can now buy one KLIMA token at $11 per piece. That is just a tragedy. But, KlimaDAO isn’t the only token performing terribly, but it might just be the worst.
Let us just start by looking at the chart below showing the results from the last seven days in percentage. It is important to understand that even though we receive rebase rewards, they still drop so much in price that they all end up in minus. KlimaDAO was the worst of them all, but Exodia and FortressDAO also dropped a lot, just like WAGMI, and all the rest (with GYRO, FHM, and MAG being the only three protocols with a value drop lower than 5%).
So, what is happening to the rebase tokens? We asked the same question last week, and somehow, it feels like they are all about to go under. There is no buying pressure, but there is constant sell pressure. Hector Finance and OlympusDAO are working decently with their protocols, and truth be told, KlimaDAO is also doing a whole lot. But, activity doesn’t seem to solve the problems of price reduction, and thus they are all suffering.
What can be done about this? Do these tokens have any future or will they just be remembered as the “biggest hype” during the autumn of 2021? What do you think?
Comparing initial investment with current value
Below you can see a little graph comparing our initial investment in the different protocols with the current value of the investment. At first, we said that if 9 out of 10 should fail, the success of the one should still bring the experiment in profit. As you can see below there is one slight problem – none of the projects are even close to being in profit.
We haven’t given up yet, and it might be that protocols such as OlympusDAO and Hector Finance can turn the tide, but seeing the trends and the price action as of recently, it seems unlikely at the moment.
What do you think? Are you still bullish on any of the rebase tokens? Are you still holding and/or investing? Have you moved on to other passive income plays? Write a comment and let us hear from you!
