Important Things To Know Before Investing In Centrifuge Token

The field of decentralized finance (Defi) has seen a vast explosion in the last 18 months. People have seen an evolution from degenerate finance to regenerate finance with various Defi projects like Uniswap, Maker, Aave, Yearn, and compound. These all have become million-dollar strategies. The evolution of regenerate finance has set up the highest bar of fiscal responsibility, user experience, and integration through mainstream networks. 

 

Moreover, the announcement of the collaboration of centrifuge tokens with Defi projects is one of the programs that connect Defi with the real world by bringing multi-trillion markets of assets on-chain. The chain of the centrifuge token has been built on Polkadot but its dapped has been bridged with ethereum. Hence, a centrifuge is one of the largest and biggest ecosystems in the world of cryptocurrency. Before moving to understand any other thing in this article, let us learn about what a centrifuge token is. 

 

What Do You Understand By Centrifuge Token? 

The centrifuge token bridges the gap between the real-world assets and Defi for bringing down the capital cost of small and mid-size enterprises. This will allow the Defi investors with a stable source of income that correlates the profits with non-volatile crypto assets. 

The companies that have been using Centrifuge to access the liquidity that is offered by DeFi can tokenize the real assets and use the respective tokens to access financing through Tinlake. Tinlake is a decentralized application lending protocol used by Centrifuge. Also, Centrifuge Blockchain makes use of Polkadot to attain the desired speed and low costs. When combined with Tinlake it allows access through Ethereum liquidity.

Centrifuge provides flexible liquidity to everyone and allows the investors to take benefits of healthy income and rewards to the investors in the form of CFG tokens.

 

Explore The Things That Need To Be Known Before Investing In Centrifuge Token

Max supply 

The sale of Centrifuge Token started on 26th May 2021 and lasted till 31st May 2021. The sale was conducted on Coinlist. The sale event took place in two stages and each stage was limited to the supply of 17 million tokens. Thus, the total number of tokens available for sale was 34 Million and the total supply of Centrifuge tokens in the market was 425 Million. The place where you can purchase centrifuge tokens is the official website of Centrifuges and other trading websites like OKEx, KuCoin, and AEX.

 

Circulating supply 

Studying the stats of June 2021, the total supply of CFG tokens is 425,000,000 in the entire market. This number is expected to increase at a rate of 3% per year. The total supply of CFG tokens are distributed as follows

  • 27% of the total tokens are distributed to core contributors.
  • 17.1% of the total tokens are distributed among the backers.
  • 7.3%  contributes towards the rewards and grants.
  • 9.5% of the total tokens are available for community sale.
  • 11.8% of the total tokens are for foundation endowment.
  • 7.1% are reserved and distributed to the community grants.
  • 10.8% of the total tokens are for development grants.
  • 8.3% of the total contribution is for the early ecosystem

Use case of project 

The entire case of buying the CFG token is completely secure and does not cause any misconception that can lead you to a potential loss. The users have to pay the transaction fees in the form of Centrifuge tokens which are further received by the transaction aggregators on the Polkadot. The fees are for processing, storing, and securing the data for further reference. These security measures along with the Nominated Proof-of-stake mechanism and CFG rewards encourage the users to go ahead with fair and clear data collecting measures.

Tokenomics 

During the sale of the CFG tokens on 26th May 2021, a total of 425 million tokens were available out of which 17 million tokens were available for sale in one session. The minimum purchase price for each candidate was limited to $100 and the maximum purchase price was $500. The current price of CFG tokens is $0.6955 and is expected to see a rise soon. Investing in CFG tokens can be beneficial in long-term returns.

Team background 

The Centrifuge was Co-founded by two brilliant-minded businessmen who aim to take the world of real estate to a next level. Lucas Vogelsang is the engineer who founded Centrifuge, who currently works as a CEO at centrifuge. Martin Quensel is the co-founder at Centrifuge and COO at the company. Both have worked at Tualia ad well and Martin was the Tualia, while Lucas joined Tualia as a Technical Manager.

With such an experienced and strong background, Centrifuge is expected to go a long way.

 

Top investor backing project 

Assets in the original world originated into the Centrifuge chain through the process of Tokenization. The real-world document is converted into an NFT through a Smart contract which replicates the inherent value of the market. Top investors like Asset Originators can form a privacy-encrypted NFT that is secured as a collateral contract into the Tinlake to get access to financing. These centrifuge Tokens and NFTs are the representations of assets or documents keeping all the essential attributes privatized and a public ledger tracks the original asset ownership.

Conclusion

It’s vital to have a background check before investing in Centrifuge Token. The above-stated article gives a rough idea about all the eccentric elements of Centrifuge tokens and allows the user to proceed with a well-posed plan before investing in it. Centrifuge Tokens are decentralized and completely secured with Polkadot and Ethereum Technology that makes investing in CFG much more secure, fast, and easier.

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