Going through Coingecko newly added coins today,, I was surprised to see a newly listed coin with a price as high as $152,323.00. Took another look and decided to probe further about the token called Fraction Token.
Fraction Token is a token with a total/maximum supply of 1. Yes, 1 Fraction Token is the maximum supply and thus, you can only own a fraction of Fraction Token. The basic idea behind this token is tied to how NFT works and it's immutability. Fraction Token can be said to be a collectible, tradeable like currencies. Fraction Token is streamable via superfluid protocol on the xDai Chain because it's a Native Supertoken.
Currently, there are about 198 holders of this token, holding fractions with the highest wallet, Whale wallet holding 24.839% of the total supply. The developers behind this project didn't conduct ICO,IEO, IDO or any form of Airdrops and it's only available to trade on Honeyswap DEX with an initial value of 1 Fraction equaling 2000 dollars in xDai by filling up the Fraction: WxDAI liquidity pool on a 0.5:1000 ratio.
To purchase Fraction Token, you will need to hold any of xDai, MIVA, xATS. To buy xDai, you can move DAI on Ethereum via the xDai bridge to get xDai on xDaiChain. For other coins aside Ethereum, you can easily swap them on Uniswap to DAI and convert the DAI to xDai using the xDAI bridge.
Fraction Token can be stored in Minerva Wallet, a wallet that simplified everything around your identities and money’s. You can buy xDai with fiat currencies directly from your Minerva Wallet. Presently, Minerva Wallet is only available for download on Android mobile device with the IOS version under development.
One notice on their site that's disturbing is the fact the team behind this project believed aside trading, Fraction Token doesn't have any real life use case/value. This coin is only tradeable on one DEX; Honeyswap. These two is enough to raise a red flag for me and cautious, dealing with this token as a would be investor.
Yes, Honeyswap is a good, emerging DEX but what happens if the team behind this project decided to rug pull everyone and disappear with investors funds. When a project is traded on one DEX, Rug Pulling by project team is easier.
What is Rug Pulling?
Rug Pulling in Decentralized Exchange (DEX) is when liquidity pool is taken away from a market. This results in a sell death spiral as other liquidity provider, holder and traders sell to salvage their holdings and to cut their losses. This is a new scamming trend in Cryptocurrency and a new form of exit scam where someone will drain the pool at DEX, leaving the token holders unable to trade.
Be careful out there friends and don't let people scam you of your hard earned money.
