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Ponzio is a new meme coin project that claims to have created a financial mechanism that will constantly increase the token price.
While it may seem like a far-fetched concept, the token’s price is consistently rising, as shown in the price chart below via DEXtools. Is it a rug pull in the making or a good investment?
This article analyzes this new meme coin project and the possibly manipulated Ponzio price action so far. Should investors take this crypto seriously?
What is Ponzio, and How is the Ponzio Price Rising?
Ponzio is a cat-themed meme coin that the official website describes as the creation of “Ponzio the cat himself.” According to the project, the meme coin has burned over 50ETH already.
What makes this project stand out is its financial mechanism, which claims to keep pumping the $PONZIO price.
The website explains that Ponzio’s total supply is slashed to half every four days. By doing so, it claims to be a Bitcoin competitor, not waiting for four years but limiting the supply every four days.
How Does this Work?
Ponzio explains that every 34 minutes, ‘a slight debase dwindles the supply.’ This sharp reduction of tokens, while their demand is still high, keeps the Ponzio price going up.
The project also states that every time a person buys the token, they can also add to the liquidity pool and stake their tokens to make passive gains. When the Ponzio supply is slashed after every four days, these stakers receive an additional 13.37% of the ‘debased’ tokens.
“The relentless infusion of value ensures the total value locked (TVL) continues to swell,” the site writes.
According to the project, Ponzio has been programmed to reach $1 million per token.
The project has been audited by Bailsec, although that doesn’t necessarily represent an endorsement of Ponzi token as a good investment, according to the audit which can be read on GitHub.
Ponzio Price Action
Ever since the Ponzio token dropped on DEX on June 17th, its price has been on a constant rise. The only short period of accumulation happened around the first week of July, during which the investors wondered whether to stay put and invest in this asset.
At the time of writing, Ponzio’s price is approximately $10, and its market capitalization is $2.33 million. DEXtools also has a DEXTscore of 94 out of 99 and a community trust rating of 63.9%.
Does Ponzio have Long Term Potential?
Ponzio presents an interesting case of a fully upfront token that is honest about its attributes. The clever mechanism of slashing the supply while also rewarding those who invest with passive earnings is a good move.
However, the token doesn’t have any long-term prospects. By design, it has been made to take advantage of the degen ecosystem. Deliberately slashing the supply to enhance the price means that there will be a time when the tokens run out.
With an RSI of 95, it is a heavily overbought token. Since its entire price action has shown a parabolic increase, it will take nothing more than a whale selling their holdings to drop the Ponzio price drastically.
That said, the project has implemented long-term holding incentives through staking, which can let it stay afloat for some time.
However, we can also make the case that investors are waiting for the price to hit a certain point before cashing out.
We should also consider whether Ponzio can reach $1 million per token as it promises. Once again, to predict that, we have to consider how overvalued this token is. As we wrote this article, the RSI went close to 99, and the token has shown no signs of stopping.
If the current momentum persists, it can probably reach $40 or $50 by August. However, to climb to $1 million, Ponzio has to rise by a massive 10136%, which is difficult to predict with certainty right now.
Furthermore, there are signs that a handful of bulls are moving its price up, indicating manipulation.
Also, the liquidity is not locked, and some crypto investors suspect it can potentially be a rug pull.
liquidity not locked, could be a potential rug pull
— Bobby (@BobbyFourSeven) June 28, 2024
Therefore, investors should consider alternative investments with long-term utility and no gimmicky tokenomics.
WienerAI – A Meme Coin with Long-Term Potential
Those looking for better cryptocurrency investments could consider throwing their support behind WienerAI.
Headlining this project is a cybernetic canine from unique sci-fi lore that WienerAI uses to highlight its many use cases.
Not only does being a dog-themed token give it viral potential, but it is also an AI crypto powering an AI crypto trading bot.
Described in the whitepaper as part AI, part dog, and part AI trading bot, WienerAI offers an intuitive trading solution using a chatbot. WienerAi’s predictive technology powers this chatbot and supports features like MEV protection, zero fees, and seamless swaps.
More than just a bot–WienerAI is your ultimate crypto trading companion.
We're delighted to share some sneak peeks with our incredible and supportive community. (1/4) pic.twitter.com/kR8ypeJycj
— WienerAI (@WienerDogAI) June 11, 2024
Furthermore, the project has already shared a sneak peek of the bot on social media.
Major crypto YouTubers are already talking about this project, with the likes of Clinix crypto expressing their excitement towards the soon-to-be launching app.
Popular YouTuber Michael Wrubel has called this a top AI meme crypto of this year. ClayBro has also recently posted a video highlighting how this token can potentially be 10x.
Jacob Crypto Bury has also covered this cryptocurrency, stating that it may have 100x potential.
Their bullish sentiments are due to the almost-made AI trading app.
With its dog-themed appeal and AI-driven utility, WienerAI has been tipped as a good investment compared to many other new meme coins. The project has already raised more than $7.4 million.
The $WAI presale will conclude on July 31st with its Uniswap listing taking place shortly after.
Visit WienerAI
*Cryptonomist did not write the article or test the platform.