Rocket Token is the ultimate rebase coin with a tokenomics that supports a constantly increasing target price and heavily discourages dumping.
In this post, I’m going to share with you, my thoughts on the Rocket Token fundamental analysis and possible token price prediction for the next 2 to 5 years.
So stay with me till the end as I have some really interesting information to share with you about this project.
WARNING: This project has an interesting tokenomics but the attitude of the team points to SCAM. Be very careful.
What is Rocket Token (RCKT)?
The way rebase coins work is that the smart contract is programmed to automatically increase the number of the tokens (RCKT) in your wallet when the token price is over the “target price”, and decrease the number of tokens (RCKT) in your wallet when the token price is below the “target price”.
So literarily, when the price is above the target price, you get more of the token in your wallet. And when it’s below the target price tokens are deducted from your balance.
And this is done in such a way that the increase and decrease affect every wallet that is holding the coin.
So while the quantity of your tokens increases or decreases daily depending on its price, your share of the tokens market cap or total supply remains the same at all times.
This means that if you own 1% of RCKT total supply today you will always have 1% regardless of the changes in supply over time.
And the purpose of this token increase and decrease game the smart contract is playing with you is to achieve and maintain the token’s target price.
I invite you to read my post on Ampleforth above for more information on the mechanics of rebase coins.
Or just continue reading as I’m going to show you exactly how Rocket Token (RCKT) works and everything else you need to know in this post.
Rocket Token Tokenomics and Distribution Breakdown
The Rocket Token (RCKT) was launched via a private sale and 2 separate presales in their Telegram and Discord communities on August 25, 2020.
With an initial total and circulating supply of 3 million and 1.7 million respectively.
- 40% of the total supply was sold in private sales and presales as highlighted in the next section below.
- 20% was allocated for providing the initial liquidity on Uniswap.
- Another 20% was earmarked for marketing and audit finance.
- 15% was locked and reserved for the future development of the project.
- 5% was allocated to the team with a 1-year vesting period and on timelock.
Rocket Token Sale Breakdown
- Private Presale: 300,000 RCKT tokens were sold at $0.75
- Presale 1: 600,000 RCKT tokens were sold at $1
- Presale 2: 300,000 were sold at $1.25
The Rocket Team
The Rocket Token team is anonymous.
The founder and CEO go by the pseudonymous name XenoTrades and is supported by 4 others and Reborn.
Reborn is the pseudonymous name of the anonymous founder and CEO of Unitrade.
Ghost team is anonymous except for John McAfee who’s now publicly left the project.
The Unitrade team is equally entirely anonymous.
So we basically know very little about the team except for the previous projects they have participated in.
But we can’t make a big case out of that because most projects in crypto are run by anonymous teams.
How Does Rocket Token (RCKT) Work?
Now that we have a general overview of Rocket Token and a little about the team, let’s go further to see some of the token’s unique features and how it works in real life.
Rocket Token Unique Features
- Rocket Token (RCKT) has a constantly increasing target price.
- Rocket Token (RCKT) can be staked for staking rewards.
- A portion of Rocket Token is burnt with every transaction.
- Every transaction (buy, stake, unstake, sell) incurs a fee (yes! and that’s in addition to gas fees).
How it Works
The Rocket Token has an initial target price of 1.25.
And this target price is programmed to increase by $0.025 every week.
As a result, the token price is expected to always keep increasing as the smart contracts constantly work to push the price towards the target at all times.
But how does it do that?
Through rebase, fees, token burn, and staking.
Rocket Token Rebase
A rebase (-or+) will be triggered whenever the price of RCKT is 10% (or more) above or below the target price.
More RCKT tokens are added to your wallet when the price rises 10% or more above the target price. This is known as a positive rebase.
And RCKT will be deducted from your wallet when the price falls 10% or more below the target price. This is known as a negative rebase (or debase?).
The increased token will encourage people to sell and take profit.
This increased selling pressure causes the price to fall towards the target price.
However, smart contracts do not control human traders.
As such people could sell too much and cause the price to go below the target by 10% or more.
When this happens, the smart contracts deduct RCKT token from everyone’s wallet to reduce what they have to sell.
This discourages further selling and the lower price attracts new buyers who hope to profit when the price eventually goes to —and possibly beyond— the target price.
This process will never end except the token achieves and remains at the target price or within the 10% range.
And the amount of new tokens you receive or get taken from your wallet due to the rebases is algorithmically determined by the smart contracts.
Here’s the formula, you can calculate the current expected rebase percentage by yourself if you want.
Rocket Token Rebase % Formulae:
(( current price – target price ) / target price ) / lag.
lag is 10.
You can find the RCKT token current and target prices HERE.
Rocket Token Fees
Rocket Token constantly punishes sellers.
No, it punishes everybody. Though in the long-run, the holders and stakers win.
In order to support the constantly increasing token price, there needs to be more buyers and HODLers (holders) than sellers.
To discourage excessive selling behavior, the Rocket Token smart contract is programmed to charge a fee on EVERY transaction.
A 3% flat fee is charged on any transfer involving the Rocket Token.
And this is how it’s implemented:
- When you buy, you pay a 3% fee on the total amount.
- When you sell, you pay a 3% fee on the total amount.
- When you stake, you pay a 3% fee on the total amount.
66.6% of these fees are distributed as dividends to Rocket Token stakers for their loyalty and helping to support the network.
And the remaining 33.3% of the fees are burned forever to reduce the token supply, make RCKT more scarce, and support the increasing target price.
But hold on a bit. You think that’s all about the fees? Nah!
It gets interesting than that.
There’s an entry and exit fee of 2% into and from the staking platform.
So when you stake on the staking platform, you pay a 2% fee on the total RCKT amount and another 2% whenever you unstake.
These 2 staking fees are distributed among the existing stakers on the platform in proportion to their share of the staking pool.
So you’re incentivized to buy RCKT and HODL or pay heavy taxes.
The RCKT tokenomics may not be very enticing to day traders but it sure is super cool for long-term investors and stakers.
As they will be enjoying:
- A constantly increasing token price
- Staking rewards
- Increasing tokens in your wallet due to more positive than negative rebase IF the tokenomics works as projected.
Rocket Token Price Prediction for 2021 to 2025
What will the price of RCKT be by the end of 2020 through 2025?
Sorry! nobody knows, not even Xeno, the CEO.
But we are can use maths and logic to make educated guesses of what the price should look like months and years from now.
Which is exactly what I did below.
Let’s start from the known and walk our way into the unknown of Rocket Token price.
Rocket Token started with a $1.25 target price. And this price is programmed to increase by $0.025 every week.
So in one year, all things being equal RCKT should be trading at somewhere around (0.025 X 52 + 1.25) $2.55.
Because this will be the target price after 52 weeks (1 year) starting from October 25, 2020, when the Rocket V2 was launched.
This is excluding market forces of demand and supply. The smart contracts will take RCK to that price on its own.
But we know the excitement is in the FOMO, right?
And for the record, RCKT is already trading above $2 at the time I write this line (November 17, 2020, 10:58 am UTC). A few days less than a month into V2.
The human factor, sentiments, and emotions are the main driver of an asset’s price.
But I would like to be extremely conservative and save myself the stress of trying to predict what some degens will do in the future by using the “known” future price based on the weekly target price increases.
With that, RCKT price should increase by $1.3 every year without fail.
So below are my Rocket Token Price predictions for 2021 to 2025:
- Rocket Token Price Prediction for 2021: $1.55
- Rocket Token Price Prediction for 2022: $2.85
- Rocket Token Price Prediction for 2023: $4.15
- Rocket Token Price Prediction for 2024: $5.45
- Rocket Token Price Prediction for 2025: $6.75
Base on this alone, if you buy $1000 worth of Rocket Tokens today at $2 per token, you will get 500 RCKT.
In 5 years time, your $1,000 investment would be worth ($6.75 X 500) $3,375.
Netting you a neat $2,375 (237%) profit.
And this is with the assumptions that:
- The token price will not rise or fall above or below the target price.
- You will earn nothing from staking.
- There will be zero positive or negative rebase effects.
But all this analysis is only possible and relevant if the project is operational and functions accordingly through these 5 years.
More so, the price of a rebase token like RCKT is not as important as the market cap.
Let me explain what I mean by that.
Earlier above, I mentioned that regardless of the changes in the price and token supply, your share of the total market cap remains the same.
That means if you hold 1% of the total supply when the market cap is $500,000 you will still have 1% when the market cap goes to $5 million regardless of the price.
So as long as the market cap of Rocket Token is increasing, your investment will be worth more even if prices are lower than what you bought them at.
For example, you bought 500 RCKT today at $2 each when the total supply is 500,000 and the market cap is $1 million.
Clearly, you have 0.01% of the total supply. Fast-forward to 2 years and the market cap is $25 million but the price is now at $1.
Because of all the rebase that has occurred we can’t possibly project what your wallet balance will be after 2 years but we know you have 0.01% of the market cap.
So your investment should be worth 0.01% of $25 million which is $2,500.
This is just an oversimplified example to illustrate the greater significance of the market cap in evaluating the profitability and value of your investment in rebase tokens like RCKT.
Overall, you will want to keep your eyes on the changes in the token’s market cap to know the true worth of your investment at any particular point in time.
Summary of Rocket Token Fundamental Analysis and Price Prediction for 2021-2025
The Rocket Token has brilliant tokenomics.
And if the team doesn’t mess things up, long-term investors will make some good money from the constantly increasing token price, staking rewards, and expected positive rebabses that increase your token stacks.
And compared to AMPL, Rocket Token has superior tokenomics and more potentials to make you rich.
But you will feel much safer with a visible team that’s backed by reputable institutional investors right?
Another concern I have is, one would have expected that the fees should only punish the sellers and respect the buyers and stakers.
For example, I would have loved to see zero fees for buying and staking.
For the f**k sake, why I’m I being charged a fee to invest my money into the project?
And why the double taxation for staking?
Why do I have to pay a standard 3% staking fee and another 2% entry fee into the staking platform?
The team may have to do more to make the fees less appalling to investors to encourage more cash inflows and “punish” outflows only.
There are talks about Rocket V3 which will introduce community governance and other tokenomics enhancements.
So that community members can propose, vote for, and implement desired changes and protocol upgrades.
Until then, I’m just HODLing, staking my small bag of RCKT tokens, and watching how things play out with the project.
What do you think about the Rocket Token? Share your thoughts with us in the comments section below.