It’s hard to find tokens with serious fundamentals that haven’t yet moved in the wake of Bitcoin’s relaunch. So I took a look at some of them, and stopped at the DODO token. I share with you this analysis made 21 November 2023.
Warning This article does not constitute investment advice or an invitation to invest. It is for information purposes only. You are solely responsible for your trading and investment decisions.
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DODO X platform : overview of the DODO token
Utility of DODO, its dedicated platform and blockchain networks
DODO X includes Swap, Cross-Chain Swap and Limit Orders, allowing users to trade any pair of chips on different networks at the best price.
In addition, DODO X offers developer tools such as the Trading API and Trading Widget, enabling any protocol to quickly integrate all DODO X features into their products.
DODO X has been deployed on Ethereum, Arbitrum, Polygon, BNBChain, Optimism, Avalanche, Aurora, OKTC, Conflux eSpace, Base and Scroll testnet, and will be deployed on Scroll mainnet, Linea mainnet, and other ZK Rollups networks in the future.
This token serves mainly as governance and rewards for platform users. In fact, 60% of the supply is reserved exclusively for this, allowing the most loyal users to walk away with great rewards.
Tokenomics of the DODO token
Make way for tokenomics, as of November 21, 2023, according to CoinMarketCap :
- Number of Tokens in circulation : 614,617,713
- Maximum number of tokens : 1,000,000,000
- % outstanding : 61 %
A limited quantity of token is always interesting, but even more so when combined with buyback!
Trading fees are redistributed to the community as follows:
- 80% to Liquidity Providers (LPs) until December 31, 2023 (temporarily paused until further notice to limit inflation)
- 15% DODO token buyback (redistributed to vDODO token holders)
- 5% to a common pot dedicated to Community initiatives
Why buyback? The buyback on trading fees is essentially used to distribute DODO to vDODO holders. But what is vDODO?
Another token? Well, yes, but this one is special in that it not only gives you voting rights within the governance body, but also allows you to automatically receive more tokens depending on platform activity and the fees charged! Other benefits include reduced trading fees. In short, a great incentive for vDODO holders to keep their token.
So how do you get vDODO? When you are holder of 100 DODO you can mint 1 vDODO and as explained above when you are a vDODO holder then you receive DODO and vDODO incomes regurlarly thanks to the buyback.
In the end, many benefits come from being vDODO holder. The sooner the better as you will more rewards accumulated. A concern revolves around the inflation of vDODO, which is not the token being studied today. To learn more, including the community’s concerns, I’ll leave you with the recent governance vote.
Graphic charter, where do we stand?
As stated in the header, unlike the other tokens, this one hasn’t yet performed. However, its graphics are very attractive.
A beautiful range is underway, with a potential weekly W formation! Support appears to be effective at the $0.09 level, but we’ll need to close above $0.17881 on a weekly basis to confirm a bullish resumption of this trend. However, with low dilution and buyback and swap. It would seem that DODO has all the cards in hand to perform well at the next Bullrun.
What are DODO’s objectives?
The aim is always to think from two points of view. The first is technical. The second is the potential of marketcap.
Technical method on the DODO token
In terms of long-term technique, what I like to use are Fibonacci projections:
In this case, all multiples ending in X.618 are relevant to study! We could also consider an exit of, say, 10% at each level reached. Example: When the price expects 2.618 and 3.618 (reciprocally $0.71 and $1.64), I can sell 10% of my position. Please note that this is an example! You can sell as much or as little as you feel comfortable with. Note that, in principle, you should avoid being exposed to more than 5% of your overall portfolio in an altcoin.
Market Cap method on DODO
Then, for the Marketcap reflection, we have to look at the token’s current position, i.e. $75 million and 360th position.
What MarketCap do you think this token can expect? 750 million (top68)? 7.5 billion (top 4). Or just 1 billion, which would put it in the top 50 and could be its place if usage of the app and consequently holders increase. In short, it’s a matter of estimation. In any case, going from $75 million to $1 billion would be a little more than x13, or a current token price of $1.56. Almost the same as the 3.618 target mentioned above! (Please note that this calculation does not take into account the dilution/burn of tokens in circulation)
A nice coefficient that could interest many, but be careful, even if you decide to enter this token. You’ll need to adapt your strategy and plan according to your profile. Remember to exit as you go along, and the fact that I’m talking about a token here in no way guarantees performance in the months ahead!
Let’s keep in mind that some projects will perform, others won’t. These are just companies and individuals trying to get by, often by maximizing their profits.
In any case, I wish you a good week and hope I’ve at least inspired you to find out more about how to go about getting the info. If you’d like me to take a look at a particular corner/token, feel free to comment on the networks when the article is published and I’ll be happy to take a look!
Entrepreneur & Dad, passionate about cryptocurrencies, I describe for you the technical analysis. Cofounder of Cryptocademia, a free platform to learn all you want/can about blockchain ! Meet you there at https://www.cryptocademia.com
My job: look at charts and interpret them for you.
Beware, I do not know all the truths.