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UNI Token Debut

UNI, A newly launched governance token called Uniswap has found itself in the middle of a media frenzy for the past 24 hours.

Uniswap Retains DeFi Buzz With Airdropped UNI Token Debut iBase Trading.
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UNI, A newly launched governance token called Uniswap has found itself in the middle of a media frenzy for the past 24 hours.

Despite price fluctuations, UNI’s market capitalization has the potential to make Automated Market Maker (AMM) the top-valued DeFi platform in years to come.

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Based on data collected by CoinGecko, there are 1 billion tokens in circulation and a current market price of $3.50. In addition, the projected market value of the project is $3.7 billion on a fully diluted basis.

According to DefiPulse, there is an existing $829.7 million worth of crypto assets that are attached to Uniswap at the moment.

Ups and Downs of UNI tokens

Since its launch, the UNI price peaked at $4.08 and then plummeted to around $3.33. It plummeted for the reason that its former Uniswap users demanded over-the-air dumping of UNI tokens.

Uniswap is a venture capital project that raised $11 million in Series A funding led by Andreessen Horowitz in early August. Having said that, this project was along with Union Square Ventures, Paradigm, and several other high-profile funds. As a result, they were able to trade the shares of the company behind the protocols, which is Universal Navigation Inc., to their investors.

Approximately 178 million UNI, or about 17.8% of the total supply, will be distributed to investors in a four-year transfer cycle. In addition, these are currently values at $600 million.

As the exchange campaigned for its Series A round, speculation arose. It is said that, investors could possible monetize the 0.05% protocol fee. The second version of Uniswap introduces this. Be that as it may, the commission feature is currently disabled.

The Uniswap token arrived a week after SushiSwap transferred over $800 million in crypto assets to the latter. As a result, it launches its competition to AMM. At the time of reporting, UNI had over 50,000 addresses, including Chef Nomi, the creator of rival SushiSwap.

UNI reactions

The unexpected launch of the UNI token pleases Andre Cronje, developer of the DeFi Yearn Finance protocol. Cronje’s managed token, YFI, sold for $32,038 at the time of issuance. Moreover, a staggering amount over the original transaction price of around $32. This venture has provided him with an estimate of around $961.7 million. Cronier said Uniswap appeared to be responding defensively to the SushiSwap threats.

In the previous 24 hours, Uniswap increased to 7.22%. However, the values for SushiSwap and Yearn Finance plummeted by about 14.28% and 14.48% to $631.9 million and $661.7 million, respectively.

Unlike UNI, there was no YFI distribution among its project team members or investors; typically, it was completely user-driven.

Many people praised UNI’s first airdrop on social media. Everyone who used Uniswap before September received a minimum of 400 UNI. At this point, some have called this an incentive for Ethereum users.

Major centralized exchanges, including Binance and Coinbase Pro, deployed UNI just hours after the launch. OKEx even offered a full suite of UNI hedge trading tools. This includes spot trading, margin, swap trading, and coin margin perpetual swaps. One of the investors in the projects is Coinbase.

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Tanya Smith is an editor at iBaseTrading. With M.A. in Journalism and Mass Communication, she is pursuing her dream of creating a positive difference in the media industry. She also enjoys Fashion and Travelling.