Kimchi Follows Sushi As New Yield Farming Coin Raises $500 Million In 4 Hours
The eagerness for people to invest in new Uniswap cryptocoins has taken on a form of extreme greed as new DeFi products are bought in matters of minutes. A new coin called KIMCHI.finance (KIMCHI) (as per the popular Korean dish) was able to raise $500 million in investment in a matter of hours.
The high annual rate of return (APY) is what drives the interest of market parties to buy into these coins but, as we’ve warned before, some are starting to look like bubbles indeed. Just yesterday, another food-named token was launched on Uniswap named HotDog. It crashed and burned quickly during the Bithumb raid that the whole crypto market experienced and went from $4,0000 to $1 in just 5 minutes.
It of course all started with Yam (which was represented by a sweet potato) a couple of weeks ago. This newly developed DeFi coin project soared to a value of $150 per coin before dropping down to $0 in a matter of two days and then disappearing completely. The developer apologized and has now launched Yam Version 2.
KIMCHI.finance follows SushiSwap
To no great avail as just a few days ago, a coin called Sushi was launched on Uniswap. Using the method of Yield Farming, it promised great riches to anyone willing to invest and soon rose to a value of $10, attracting hundreds of millions in invested dollars with it. By now, some $1,4 billion have been traded on Uniswap for Sushi, as the coin reaches a maturity of …. wait for it…. 1 week old.
Just bought $KIMCHI at 4.63$. Why the fuck did we spend 5 years studying finance when we can just farm some asian foods— Crypto Genius Bar ® (@CryptoGeniusBar) September 1, 2020
Seeing the success of food-based token names, which sell well, the developer launched Kimchi soon after.
Kimchi raised $500 million in just four hours, reaching a value of $6. After the Bithumb raid sank the whole crypto market yesterday, Kimchi dropped back down to around $1,90, down 67% at the time of writing.
Hotdog crashes and burns
Problem is that at around the time of Kimchi’s rise, which was accompanied by Sushi also still trading at around $8, Uniswap introduced another token, called Hotdog.
Tell me more about putting all your profits into $HOTDOG.— LL Capo Di Tutti i Capi (@LLLuckyL) September 2, 2020
“Hey CAPO. Stop warning people about rugpulls. Lighten the fuck up. We printing ETH here I JUST MADE 10x on SUSHI. HAHAHAHAHAAHHAHAHAHAHAH THIS IS EZ. WHAT CAN GO WRONG???? ALL IN HOTDOG”
LATER THAT DAY.. pic.twitter.com/nWJVxZSoQn
The timing couldn’t have been worse, as the token dropped some 99.9% from its top at around $4,000 to $1 in just…. wait for it…. five minutes. Crash and burn we call that.
$4000 to $1 in 5 minutes.— lowstrife (@lowstrife) September 2, 2020
ok can you guys stop trading pic.twitter.com/cZRTBfyJj3
Uniswap is about to launch Ramen today apparently. We are curious to see what happens. Would it be better to just buy Bitcoin or invest in food coins?