Food-themed coins have been around for a while in the cryptocurrency world. Every delectable culinary item, from pizza and burgers to yam and kimchi, has a DeFi token attached to its name. However, these tokens have only been present in the last few days.
Almost all of the above tokens have more than doubled in value since July 20th. The price of a BURGER increased from $3.05 to $6.46. During the same time period, the price of SUSHI increased from $6.2 to $10; the price of CAKE increased from $10 to $18, the price of PIZZA increased from $0.1 to $0.2, the price of YAM increased from $0.48 to $0.82, and the price of KIMCHI increased from $0.00020 to $0.000336.
Wait, have you ever heard of these tokens before?
SushiSwap has arguably already carved out a niche in the DeFi industry. This community-driven DeFi liquidity pool platform compensates liquidity providers. However, the protocol is not very democratic, and users do not always have a say in governance matters. In that regard, BurgerSwap is far more democratic. Users have a voice and the ability to vote. In fact, they are rewarded for using their voting rights.
Yam Finance too, for that matter propagates decentralized governance where YAM HODLers decide the future via on-chain voting. Its treasury has also been growing at an impressive pace of late. Interestingly, YAM tokens have an elastic supply and it expands and contracts based on the market conditions. There are over 10 million PIZZA tokens in supply and over a tenth in circulation. Users can additionally trade on the Pizza DEX and take part in their exclusive stablecoin investment program too.
Just like SushiSwap, KIMCHI rewards users for providing liquidity. PancakeSwap also, for that matter, permits users to exchange tokens, provide liquidity via farming and fetch returns. CAKE users can additionally try their luck with lotteries and NFTs too.
So, are these tokens worth taking a chance on?
The volumes for these tokens have, as such, started witnessing notable spikes. In fact, at the time of writing, BURGER’s volume typically reflected a value of $18.09 million, while the same for SUSHI and CAKE stood at $262.51 million and $427.17 million. KIMCHI, YAM and PIZZA’s volumes too, for that matter have been rising.
Money is clearly being poured into these projects, and they appear to be attractive short-term investments at this juncture. Traders might expect to make a buck or two until the excitement dies down. If the buzz grows in the following weeks, these food-themed tokens could become the next big thing in the DeFi industry.
However, much with CAKE, the identities of the majority of the other projects’ founders are unknown. Various rug-pulls and ponzi schemes have resurfaced out of nowhere in the ecosystem. As a result, long-term investors must be mindful of potential red signals and consider the sustainability aspect before making a decision.