ETH fan token (EFT) is the official cryptocurrency of the ETH fan club. Cryptocurrency fan tokens are not strange in the crypto space, and the Ethereum network is not left out. This fan club is made up of a large group of people who are enthusiastic about Ethereum, its official token, Ether, and the future of cryptocurrency as a whole.
The club was founded early in 2021 by a team of people who claim to have recorded numerous achievements in previous investments. The project is said to provide the crypto community with a safe and secure haven designed to make investors more open to investing their funds in its Ethereum fan token. However, it’s important to note that the founders haven’t revealed their identities, so there is an increased threat of foul play.
The Eth fan token ecosystem is supposed to be a unique one because the Eth fan token pays dividends to its users. These dividends are usually in the form of Binance-supported ETH. It is quite a curious twist to run the Ethereum fan token on a different blockchain than Ethereum. Also, the white paper doesn’t clearly specify where the dividends come from, which is another red flag to consider.
Further, a prerequisite must be fulfilled before one can earn dividends. This prerequisite is having up to (or over) 200,000 EFT in your wallet. Having this amount makes you eligible to earn dividends regularly.
Also, the more tokens you have, the more dividends are allocated to you. This incentive encourages enthusiasts to buy more ETH fan tokens to increase their earnings. But should they?
What is ETH Fan Token?
The Ethereum fan token is a BEP-20 token fully supported by the Binance Smart Chain. According to the founding team, the reason for using the BSC is to ease the fear of investors who are skeptical about investing in projects because of the limitation of the ethereum blockchain, some of which include the hefty gas fees - it seems like they’re not such big fans of ethereum after all.
The EFT team clarified that both big and small-time investors are welcome on board, which might be quite counter-intuitive considering they applied a minimum threshold for investors to earn dividends.
Furthermore, the ETH fan token crypto team has mentioned several benefits attached to the token being pegged to the BSC. Some of these benefits include a drastic reduction in gas fees compared to the exorbitant price paid by their ERC-20 counterparts. However, the Ethereum move to proof of stake, Ethereum 2.0, would see a lowered gas fee. As you certainly noticed by now, EFT seems to have no fundamentals but repeats the advantages tied to the underlying blockchain, which somehow isn’t ethereum but BSC.
Maybe the only reasonable thing coming from the Ethereum fan token team is their call upon investors to conduct their research before investing in the token.
This cryptocurrency fan token is wholly run by smart contracts that have been supposedly tested, tried, and audited. The ETH fan club had also earlier disclosed a roadmap of the ongoing and future plans on the network. The implementation, which kicked off in the last quarter of 2021, is set to run into the second quarter of 2022.
Unique Features of The EFT
The ETH fan token, just like some crypto projects, employs the use of regularly audited smart contracts and novel tokenomics that aid the automatic generation and distribution of dividends to eligible token holders.
Audited Smart Contracts
The blockchain-supported smart contract of the ETH Fan Token is wholly tested and audited by three individual tech companies, including Certik and Interfi network, among others.
The liquidity pool of the EFT is currently locked and will remain so for five years. The tokens locked include those of the team members that will stay locked for 180 days, referred to as vesting.
Community Inclined Governance
The EFT team claims to be fully committed to ensuring that power is not concentrated in the hands of a few people. Rather, the users are given the power and right to have a say in the governance of the network through a transparent voting process.
The smart program used on this platform has features that protect the network from attacks by bots, especially Sniper bots.
Various marketing plans and strategies have been put in place to increase the popularity of the token and to attract more investors. The success of these promotions is expected to lead to a soar in the ETH fan token price. The Ethereum blockchain has always been in the spotlight, and with the Ethereum merge on the way, the network is expected to increase in popularity. But speaking of EFT, we see only strategies to “pump” its token price, seemingly with no added value.
Transaction Limit Mechanism
A whale prevention mechanism has been put in place on the smart contract. This limits the number of tokens that can be used for trading. The maximum amount a user can own is 1% of the total market capitalization (equivalent to 10 trillion).
The maximum amount that can be traded during a transaction is pegged at 0.1% of the market cap (equivalent to 1 trillion) per transaction.
The ETH Fan token doesn’t provide any clear edge rather than intentions to hype the ETH fan token price and pay out dividends, the attitude that resembles other infamous pump and dump and Ponzi schemes in the crypto space.
We encourage investors to treat this project with great caution, especially since there are many other projects in the crypto niche providing cutting-edge solutions to real-life problems.
*This communication is intended as strictly informational, and nothing herein constitutes an offer or a recommendation to buy, sell, or retain any specific product, security or investment, or to utilise or refrain from utilising any particular service. The use of the products and services referred to herein may be subject to certain limitations in specific jurisdictions. This communication does not constitute and shall under no circumstances be deemed to constitute investment advice. This communication is not intended to constitute a public offering of securities within the meaning of any applicable legislation.