Buzz around Kava coin woke old memories of 2017 – packs of anonymous and semi-anonymous Twitter profiles hyping the latest Binance stallion.
We picked up the noise around Kava thanks to Sanbase – a crypto swiss-knife research tools, that among many other things, measures murmur among professional traders in innumerable Telegram, Discord chats.
What you'll learn 👉
So what is the fuss all about?
A few days ago, the Binance cryptocurrency exchange announced the Kava (KAVA) token sale on the Binance Launchpad. This is one of the many projects that conducted an Initial Exchange Offering (IEO) on Binance’s platform.
The project raised $3 million worth of BNB by selling 6.52 billion of its KAVA tokens (6.52% of the total KAVA supply).
Kava is known for its popular cryptocurrency swap application Switch which enables near-instantaneous swaps of cryptocurrencies that are based on different blockchains. Kava is also in the process of developing an XRP backed stablecoin and a PoS blockchain which will include many different kinds of cryptocurrency tokens in the Cosmos ecosystem and also improve defi services that can be delivered.
Kava is a cross-chain platform geared towards decentralized finance (DeFi) applications. The Kava platform is built on Tendermint, the same consensus engine that powers Cosmos. Similarly to the highly popular Maker, the Kava platform allows users to lock their cryptocurrency to enter collateralized debt positions (CDPs) and receive USDX stablecoins in return.
Pump and dump?
Just because of the Binance name behind them, IEOs launched on CZ’s platform are hyped and sold out in a matter of minutes. Kava is no different – actually, it is being pumped right now as many Twitter traders tout it as the next big crypto to profit off.
Should you join the party?
I am afraid it might be too late for that. All these Twitter handles shilling Kava are early investors looking to squeeze one last drop out of their already huge profit day.
There could be some more fuel in the tank of this Kava pump, but buying now would be very risky.
What is Binance Launchpad?
The idea behind Launchpad is to be able to participate in ICOs on Binance in order for you to receive your tokens directly into your Binance wallet. That’s the main advantage for users. Another advantage is that you don’t have to go through all these KYC steps that most ICOs require. A last advantage that’s worth mentioning is that, as an investor, it’s a guarantee that the token will be listed on a major exchange(Binance) and hopefully have a decent volume.
