Bittime - The crypto industry is once again enlivened with a surprising maneuver from Jupiter, a decentralized exchange aggregator (DEX) based on the Solana blockchain. On Wednesday, Jupiter's co-founder, whose identity is pseudonymous and goes by the name Meow, shocked the crypto community by proposing a proposal to change the tokenomics of the JUP coin.
Impact on JUP Price Increase
This proposal had an immediate impact on the JUP price rally, which jumped 7% after the announcement. Let's take a closer look at the JUP token restructuring plan and its impact on Jupiter's future. This also boosted JUP's market cap in the last 24 hours to reach $1.10 billion US dollars.
Source : CoinMarketCap
Meow's proposal includes several key points. First, he proposed a reduction in the total supply of JUP by 30%. Currently, the total supply of JUP amounts to 10 billion tokens. This cut is expected to increase the scarcity of JUP and potentially encourage price increases.
Second, the Jupiter team will voluntarily reduce their own token allocation by 30%. This step signifies the team's commitment and seriousness in aligning their interests with the interests of the JUP community.
Third, the proposal also calls for a reduction in "Jupuary emissions" by 30%. Unfortunately, clarity regarding whether this reduction is permanent or only for the upcoming month of January is still unconfirmed.
JUP Price Today
At the time of writing, the price of the JUP coin is trading at the level of IDR 13,164. The performance of this Jupiter coin has skyrocketed by 9.47% in the last 24 hours based on data monitoring from Bittime at 16:31 WIB, 20/06/2024.
Source: Bittime
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Holder JUP Bersuka Ria
Meow's bold move was enthusiastically welcomed by JUP holders. The price of JUP, which at the time of the announcement of the proposal was in the range of 71 US cents (Rp 1,136), immediately shot up 7% to 76 US cents (Rp 1,216) according to data from TradingView.
Although the price is currently higher than during the airdrop in January (at 66 US cents or Rp 1,056), it should be noted that JUP is still far from its highest point or ATH.
According to CoinGecko data, JUP once touched a record high of $1.75 US dollars in March, which means the token has lost more than half of its value.
Reasons for JUP Tokenomics Changes
In a live broadcast, Meow revealed a number of reasons behind the proposal. "Our main concern is [fully diluted valuation] and our total supply is too high," he said.
For information, fully diluted valuation (FDV) is an estimate of the market capitalization of a cryptocurrency if the entire supply of tokens has been in circulation. Currently, Jupiter has an FDV of $7.76 billion US dollars according to CoinGecko.
This figure is considered too high by Meow, and the supply cuts are expected to lower FDV to a more reasonable level. In addition, Meow also highlighted ongoing concerns regarding JUP token emissions that are considered too high.
It should be noted that the difference between the total supply of JUP and the circulating supply currently stands at 8.65 billion tokens, or six times more than those in circulation. In other words, most of the JUP tokens have not been distributed. This has the potential to cause inflation and pressure the price of JUP.
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Reduce FDV
Through this proposal, Meow hopes to "reduce the [fully diluted valuation] that is too high, invite the community to better understand JUP's tokenomics, as well as address concerns around high emission levels and motivate everyone to jointly develop this ecosystem," Meow wrote in his nearly 500-word tweet. A vote on the JUP supply reduction will be held in July.
What is FDV?
Fully Diluted Valuation (FDV) is an estimate of what the market capitalization of a project would be if all tokens were released to the market. FDV provides an overview of the potential inflationary impact and selling pressure from the release of new coins.
In the world of crypto investment, FDV is a key evaluation tool that provides an in-depth assessment of the market value of digital assets.
Conclusion
The proposed tokenomics change is in line with the trends that are happening in the crypto universe. Several other crypto projects are also unlocking a large number of their tokens. These tokens were previously frozen to prevent a massive sell-off by the team and investors in the early stages of the project.
It is interesting to note that despite facing controversy related to tokenomics, Jupiter has so far managed to post a performance that deserves a thumbs up. The platform was able to record a daily trading volume of $159 million US dollars (Rp 2,544 billion).
This figure puts Jupiter as the third-largest DEX aggregator after THORChain ($188 million US dollars or IDR 3,008 billion) and Uniswap ($348 million US dollars or IDR 5,568 billion).
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How to Buy Jupiter (JUP) on Bittime
You can buy and sell Jupiter (JUP) easily and securely through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered with Bappebti.
Jupiter (JUP) is available on Bittime with the JUP/IDR market pair. To be able to buy JUP IDR on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have a sufficient balance by depositing a certain amount of funds into the wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can only buy crypto assets on the application.
Learn the complete guide on how to buy Jupiter (JUP) on Bittime.
Monitor the price chart movements of Jupiter (JUP), Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
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DISCLAIMER: This article is informational and does not constitute an offer or solicitation to sell or buy any crypto assets. Crypto asset trading is a high-risk activity. The price of crypto assets is volatile, where prices can change significantly over time and Bittime is not responsible for changes in fluctuations in the exchange rate of crypto assets.
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