Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Cryptocurrency

Can the Sphynx ETH (SPHYNX) token make money from Ethereum?

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The Sphynx ETH (SPHYNX) token is attracting enormous attention these days. For example, CoinMarketCap named SPHYNX as the most trending cryptocurrency on 14 January 2022.

So what is Sphynx, and why does Mr. Market like it? Sphynx is an Ethereum platform that claims to offer an all-in-one (AIO) solution for staking, trading, farming, and holding cryptocurrency. Sphynx claims it offers one platform or app for all Ethereum tasks.

The Sphynx Platform

The Sphynx (SPHYNX) platform includes the Sphynx Wallet, the Pyramid Farming solution, an NFT Marketplace, a Sphynx Launchpad, Sphinx Nile Pools, Sphynx Lock, and a multichain solution. For instance, the Sphinx Nile Pools allow Ethereum blockchain projects to distribute a portion of their tokens to their Sphynx token holders.

The Sphynx Wallet allows users to store assets, trade assets in the Sphinx app, and transfer assets to other platforms. The Sphinx NFT Marketplace allows artists and owners to sell NFTs from various chains in one place.

Sphynx Launchpad allows developers to launch apps and tokens on Sphynx and Pancake Swap. The Sphinx Lock allows users to lock tokens and liquidity protocols in Sphynx in Pancake Swap.

The Multichain allows users to switch networks and trade on different blockchains at the click of a button. For example, you could trade Binance and Ethereum at the same time through Sphynx.

SPHYNX Tokenomics

They finance Sphynx with a 5% development fee and a 5% marketing fee charged on all transactions. In addition, they will auto burn 1% of SPHYNX tokens to maintain its price. Hence, they will charge an 11% tax on all SPHYNX transactions to finance the platform.

The platform will disperse 5% of the SPHYNX tokens to the Sphinx team, deploy 44% of the tokens for liquidity and presale, use 20% of the tokens in a private sale, give 15% of the tokens to exchanges, use 5% of the tokens for marketing, and burn 10% of the tokens to maintain price.

Originally, SPHYNX planned to offer Binance USD (BUSD) stablecoin rewards. However, they have replaced the BUSD rewards with a feature they call Swap Fee Rewards. They have replaced Sphynx Dividend with Swap Free Rewards.

What Value Does SPHYNX Have?

Ascertaining Sphynx’s value is hard because none of the SPHYNX solutions appear to be available. Notably, they offer no dates for the launch of the Sphynx tools.

Instead, they offer a “road map” with phases but no dates. My suspicion is that they do not have the money to complete the SPHYNX project. Instead, they hope to raise enough ash to pay for it with the Initial Cryptocurrency Offering (ICO).

Mr. Market, however, gives Sphynx ETH (SPHYNX) some value. For example, CoinMarketCap gave SPHYNX a Coin Price of $0.002394, a Fully Diluted Market Cap of $1.332 million, and a 24-Hour Market Volume of $25,869 million on 22 January 2022. They based those numbers on a Total Supply and a Maximum Supply of one billion SPHYNX.

SPHYNX was Coin Market Cap’s 1,181st largest cryptocurrency on 22 January 2022. In comparison, CoinGecko gave Sphynx ETH a Coin Price of $0.001327476880, a $1.327 million Fully Diluted Valuation and a 24-Hour Market Volume of $23,624 on 22 January 2022.

Hence SPHYNX has a little value but I consider that value theoretical because there is no evidence any of Sphynx’s solutions work. I advise speculators to watch Sphynx but not buy it.