The developers of the Rare Antiquities Token (RAT) hope to drive interest in their cryptocurrency, by giving nonfungible tokens (NFTs) away.
To explain, each Rare Antiquities Token offers fractional ownership in an artwork or exhibit in a museum. This ownership will take the form of two NFTs based on museum exhibits. Holders will also get free admission to some museum. The RAT will also convey ownership in artworks and items in galleries.
Hence, the RAT is an asset based stablecoin. A stablecoin is a cryptocurrency that contains a smart contract. The smart contract is a digital mechanism that makes payment from an account or sells an asset when you spend the stablecoin.
Why the Rare Antiquities Token could have no Value
Unlike most stablecoins, the Rare Antiquities Token (RAT) will contain NFTs based on antiquities and artworks rather than fiat currency. Hence, it is impossible to determine the NFT’s value.
The problem with this arrangement is that the only way to determine an antiquity’s value is to sell it. You can have the antiquity appraised, but the appraisal is only an opinion. Similarly, the only way to determine an NFT’s value is to sell it.
If there is no market for the NFTs or the antiquities. The RAT Token will have no value.
The Rare Antiquities Token is the opposite of a Stablecoin
Hence, they could create a stablecoin with no uniform value. Thus, the Rare Antiquities Token (RAT) is the opposite of a stablecoin.
To explain, stablecoins such as the Tether (USDT), the USD Coin (USDC), and the Dai (DAI) have uniform values because they pay in US dollars. Thus, every Tether, Dai, USDC, and TerralUS (UST) has a value of around $1.
It is easy to determine these coins’ values by examining the exchange rate. Stablecoins offer some stability because they make payment in a widely used fiat currency.
On the other hand, Rare Antiquities Tokens will have many values because they base the RATs’ worth on many different assets. Hence, some RAT coins could have enormous value and some will be worthless.
The RAT Marketplace
Remember, only a small portion of the typical museum’s collection comprises priceless paintings or famous artworks. For every Picasso, the average museum collection contains thousands of items nobody cares about.
They hope to establish the value of the RAT tokens by selling the NFTs through the RAT Marketplace. One hope is that the Rare Antiquities Token can expand the collectibles market to museums and antiquities.
The hope at RAT is to cash in on the museum industry. The RAT litepaper estimates the value of the US museum industry at $12.19 billion. RAT’s developers hope to have many customers in the 94,675 museums they estimate operate worldwide.*
Another hope with RAT is to increase access to museums by allowing people to pay for museum infrastructure with Rare Antiquities Tokens through RAT to pay.
At present, no museums appear to be using RAT. Instead, they will test the Rat to Pay in 2022, probably in a museum in the United Kingdom. They plan a publicity campaign for RAT in the UK next year.
What Value does RAT Have?
I think the Rare Antiquities Token (RAT) is one of the most questionable cryptocurrencies I have ever seen. If the RAT works as advertised, it will have no consistent value.
In addition, they named the token for dirty, disease carrying vermin that most people want to exterminate -rats. Moreover, the word rat is a slang-term for a traitor or untrustworthy individual in some English-speaking countries. Naming a stablecoin for vermin and something untrustworthy is bizarre.
Accordingly, Mr. Market gives the RAT little value. CoinMarketCap gave the Rare Antiquities Token (RAT) a Coin Price of 0.0001498₵, a Market Cap of $809,840 a Fully Diluted Market Cap of $74.648 million, and a $24 Hour Market Volume of $55,256 on 30 September 2021.
They base those numbers on a Self-Reported Circulating Supply of 5.14 billion RAT. CoinMarketCap listed the Rare Antiquities Token was the 3980th most valuable cryptocurrency on 30 September 2021.
In comparison, CoinGecko gave the Rare Antiquities Token (RAT) a Coin Price of 0.000149451₵, a Market Cap of $2.368 million, a Fully Diluted Market Cap of $74.723 million, and a 24-Hour Trading Volume of $155,312 on 30 September 2021.. They base those numbers on a Circulating Supply of 15.839 million RAT, a Total Supply of 500 million RAT and a Maximum Supply of 500 million RAT. CoinGecko ranked RAT as the 1759th most valuable cryptocurrency on 28 September 2021.
I consider the Rare Antiquities Token (RAT) a bad idea for a stablecoin and a junk cryptocurrency with no true value. I advise everybody to stay far away from RAT. I think this token will have no value.