Phoenix Community Capital is one of the most hyped node/nest protocols right now, and they did something quite astonishing recently… they gave away a free nest to anyone with a nest in their wallet before April 1st. As the rumors spread about the nest-drop, most people thought it would be a typical Fools’ day joke, but it turned out to be true!
That was a great gift to many people by the start of April and considering that the price of FIRE was between $200 and $300 by that time, this was a gift worth between $2000 and $3000 to everyone who benefitted from the present.
FIRE nest cap of 100,000
Another very important announcement was made by the Phoenix Community Capital team as they said there will be a cap of 100,000 nests.
At the time of writing, nearly 50,000 nests have been made, meaning that half the number of allowed nests have already been made. How this will influence the future of the protocol will be interesting to see.
How will a node cap influence the protocol?
This is a question asked by many people and many investors. The true question is what people will do with their FIRE tokens generated in the nests once the cap has been reached. Currently, lots of investors compound and compound, and thus, the selling pressure is kept down. With the nest cap introduced, even more people FOMO-buy, in order to get one or more nests, thus creating buying pressure at the moment.
In other words, the announcement has had a good effect on the current market conditions, but how will this affect the price of the token long-term?
The question is what the Phoenix Community Capital team will do in order to make investors keep their FIRE tokens, stake their FIRE tokens, or do something else (instead of selling) once the cap has been reached. If they manage to come up with something brilliant here, this might become very interesting.
The question ends up being – Do you trust the team or not? Do you believe that the nest cap is carefully planned and a part of a much bigger picture?
What are your thoughts?
