Today we continue to talk about 2 projects, which are also in the 200-300 range. The first one, MGC, is a game platform coin, and the second one is a stable coin Tribe project. Let me first say that these two projects currently have problems and are not highly recommended.
1. The MGC project was launched in March this year. It has increased 15 times and its market value has reached 300 million US dollars, ranking 240+. It is also a blockchain game platform, but it currently has no products. You can think that it is in the bragging stage. The biggest point is that it is on the Binance chain and is claimed to be invested by Binance. I don’t know whether it is true or not, but this is also its biggest highlight at present. The rest are all complaints, because there is no product, the team is anonymous, the white paper is poorly written, and github is not public.
Introduction
This project was previously done by the team at Play Work, a professional social platform designed for the video game and entertainment audience community. The concept of this social platform is different from mainstream social platforms, which are places where people post content every day. Play Work is part of the whole, serving as a hub and portal for audiences to connect to the wide range of MGC ecosystem services.
There is not much to say about the project itself. As for the blockchain gaming platforms, the statements are all similar. The only roadmap I can tell you is that the platform will not be released until Q4 of 24 years, and NFT will also be launched, and the game will not be released until 25 years. Well, you just wait.
Token Economy
The project was first launched on the Pancake Exchange in February of this year, with a total of 100,000,000,000. Currently, 1,099,999,700 are in circulation, with a circulation rate of 1%. The current exchange rate is 0.26 US dollars. The token distribution is as follows: 44.6% of the tokens will be burned.
Then I dug deeper into the token holders. Currently, there are 67,000 total holders, which seems like a lot, so that’s okay, right?
But I looked at it carefully again, and the addresses were distributed very evenly, and it looked like they were fabricated data. So they were setting up a trap to lure people into it.
2.Tribe
The performance of this project in the past year is also very confusing. Although it has increased by 80% overall, it was only about 2 US dollars when it went online. I can tell you the conclusion directly, that is, the current project should be in a dead state, because its Twitter was only updated until 2022, and there has been no update since then, and discord cannot be added. Another more direct evidence is that the TVL on the chain has returned to zero, only 9 US dollars.
Since it is a "dead" project, why is it still rising? Logically, it should have fallen directly to a lot of zeros. Let's analyze it first and then summarize it and come to this conclusion later.
Introduction
TRIBE is the governance token of Fei Protocol. Fei Protocol supports the creation of decentralized, scalable and fair stablecoins based on Ethereum. Its name is inspired by the famous stone currency (FEI) on Yap Island - it is hoped that FEI will show the same stability, simplicity and universality as the stone currency. FEI adopts a new type of "direct incentive" stable implementation mechanism, which is more capital efficient, fairly distributed, and completely decentralized. The protocol uses the protocol controlled asset value (PCV) to maintain the liquidity of the secondary market and realize the pegged issuance and value stability of FEI.
The decentralized stablecoin FEI is also pegged 1:1 to the US dollar. The pegging mechanism of FEI is simple and direct. Fei Protocol manages a set of token reserves (the protocol controls the value) through an algorithm to support the direct redemption of FEI for 1 US dollar.
Tribe is the governance token of FEI. If the collateralization rate of PCV (protocol reserve is called protocol control value) is lower than 100%, Tribe will make up for the reserve shortage and the on-chain recovery mechanism will issue new TRIBE to repurchase FEI debt.
When there is a surplus, the agreement will use FEI to repurchase TRIBE on the market at a certain ratio.
Stabilization Mechanism
Fei is a partially collateralized system with an initial collateral of ETH. This collateral is not owned by the user. Instead, Fei Protocol saves the received ETH as a protocol-controlled asset value (PCV), meaning that users cannot arbitrage collateral directly from the system. Instead, the system actively manages this collateral to control the anchor (its anchor value in the FEI protocol is $1).
The system works by starting with a percentage of collateral backing the system (depending on the amount of FEI minted during the initial sale). The system then uses the entire collateral (ETH) to add liquidity to the ETH/FEI pool in the Uniswap protocol (which does not require any collateral to mint additional FEI).
More than $1
If the price of FEI exceeds $1, the protocol allows users to mint new FEI directly from the system (in exchange for an equal amount of ETH as collateral). For example, if the market price of FEI is $1.50, anyone can mint new FEI at $1.01 and sell it on the market until the arbitrage opportunity closes.
Less than $1
If there is insufficient demand for FEI and the price drops below $1, the system has two main methods of price correction:
The first is what we call a “direct incentive.” If the price falls below the peg, the basic approach is to fine the seller. This penalty is implemented to encourage buyers to buy FEI. In essence, these direct incentives are similar to bonds in that they incentivize speculators to support the price when it is below the peg.
If direct incentives fail to fully correct the price, a second price correction mechanism will kick in. These mechanisms are called "peg reweighting". In this case, the protocol will withdraw liquidity from the Uniswap pool. The withdrawn ETH collateral will be used to buy FEI on the open market to bring it back to the peg. The remaining ETH will flow back into the Uniswap pool. The end result should be a price return to the peg, even though the protocol now has less collateral.
Although he set up this seemingly forced return mechanism, I personally feel that it is useless, because when you have no value, especially when you are defeated, these are all in vain, not to mention that your coins have no value in the first place. Look at the value of FEI USD, it has always been less than 1 US dollar, and there is no return at all.
Token Economy
The project was launched in March 21. The total amount of tokens is 1,000,000,000, and the circulation volume is 538,157,187. The current exchange rate is US$0.49. The peak price was $1.8671 (2021-05-06). The token distribution has not been found.
But I checked the TVL and it’s only 9 USD. You read that right. However, the token Tribe of this project is mainly used for governance. It is still a stable currency with some value, but Fei USD is only 10 million USD and it has not returned for a long time.
Then I looked at the distribution of the tribe and found a special pattern. The project party still holds 44% of the coins, and 38% of the addresses are also very suspicious, and I feel they also belong to the project party.
In summary, it is better not to invest in this project. I have mentioned before why a dead project is still rising, probably because someone is manipulating it.
To conclude, the fundamentals of these two projects are very poor. Although the growth is acceptable, they are both projects with severe market control, just waiting for you to take the bait, so it is strongly recommended not to get involved.
