Belon DAO price prediction: Is it a legit coin?

Belon DAO is the first community-governed exchange on the Binance Smart Chain

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With a sparse website and a lack of information about the team behind the project, Belon DAO has a lot to prove – Photo: Shutterstock
                                

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From Binance to Coinbase to KuCoin, plenty of crypto exchanges have emerged over the past couple of years. Belon DAO, launched at the beginning of February 2022, is attempting to stand out from the crowd as the first community- or DAO-governed exchange.

But what exactly does this mean? And can we make a Belon DAO price prediction?  Before we look at any price forecasts, let’s do a quick overview of the coin.

What is Belon DAO (BE)?

According to its sparse white paper, Belon is attempting to push “the frontier of the cryptospace” by being community-managed. Important decisions, the literature states, will be made by Belon token holders. As well as contributing to how the protocol will be governed, token holders can also stake their coins.

DAOs, or decentralised autonomous organizations, are governed by rules voted upon by a community rather than a central authority. These rules are written into the blockchain and are thus immutable.

Belon DAO, like Sushi Swap, Curve and Uniswap, claims to have adopted an automated market maker (AMM)-based structure.

In automated market makers, liquidity pools allow digital assets to be traded without permission and without a centralised structure, with no one party governing the system. Liquidity pools in AMMs allow for round-the-clock trading, unlike legacy trading practices.

High liquidity is a requirement for trading. Liquidity refers to how easily one asset can be traded into something else, be it fiat or another kind of cryptocurrency. High liquidity means the market price of an asset will not be compromised when attempting to trade it.

When crypto first emerged, it had low liquidity as there were not high levels of buyers and sellers. Liquidity pools, where liquidity providers artificially created liquidity by being paid a fee in exchange for depositing their assets to contribute to liquidity, successfully solved this issue.

AMMs use a mathematical formula to ensure there is a constant balance of assets in the liquidity pools which, in theory, helps to regulate the price of assets in those pools.

Staking Belon DAO

Belon claims to be secured via a proof-of-stake consensus model. Users stake coins in order to participate in the process.

According to the Belon white paper, individuals can also stake their tokens to earn rewards. By locking up tokens, the coin price is boosted as there are fewer of them in circulation. Stakers gain authority in the decision-making process on the protocol in proportion to how many tokens they have staked.

Belon also claims, on its website, that users can withdraw and deposit funds onto the DEX through PayPal.

Unfortunately, the founders of the project are entirely anonymous. This, combined with the meagre information provided on the website, makes it difficult to gain complete trust in the project.

Tokenomics

According to the literature, 3% of transaction fees will be held in staking pools and distributed proportionally to stakers. Half of the  profits from the exchange will, according to the website, be distributed to token holders.

Out of a maximum supply of one billion BE coins, 16% will be set aside for staking, 15% for partnerships, 20% are on presale and 14% will be reserved for the liquidity pool. The remainder will go towards other functions, including airdrops, marketing and giveaways.

How does this information impact a Belon Dao price prediction for 2022? Or even a Belon DAO price prediction for 2030? Before we answer that, let’s examine the coin’s performance so far.

Recent coin performance

Since its launch on CoinMarketCap on 7 February 2022, the BE coin rose in price from $0.0005188 to $0.0008542 on 11 February. The price soon after fell to $0.0005917 on 12 February, before increasing to $0.002416 on 14 February. Soon after that the price slid to $0.001399 on 14 February 2022.

The BE coin price stood at 0.001827 on 15 February 2022, having gained more than 11% in the previous 24 hours, according to Coin Gecko. The company has reported a current market cap of $2.021m. There is a maximum supply of one billion BE coins and a currently unknown circulating supply.

While the coin appears to have performed well since its release, how does this impact a Belon DAO price prediction?

BE price prediction: expert opinion

It’s important when looking at predictions to remember that, while they can be helpful as an indicator of which direction the price may move in, they should be viewed as possibilities rather than absolutes. This is especially the case when looking at longer-term forecasts, as these can sometimes be completely off the mark.

This is due to both the inherent volatility of the crypto market, and the many unknowns which could impact future prices. With that in mind, let’s look at a couple of Belon DAO price predictions.

The coin is so new, that very few sites are making predictions about its future. However, DigitalCoinPrice thinks that the coin could be worth $0.00237 in 2022 before increasing to $0.00263 in 2023. The website’s Belon DAO price prediction for 2025 stands at $0.00360.

At PricePrediction.net, the betting is for a price of between $0.003 and $0.004 in 2023, rising to a maximum of $0.006 in 2024 and $0.007 the following year. The site then sees the coin climbing through $0.010 in 2026 to reach a maximum of $0.025 in 2028, and as much as $0.053 in 2030.

FAQs

How many Belon DAO coins are there?

There is a maximum supply of one billion BE coins and a currently unknown circulating supply.

Is Belon DAO a good investment?

There are not many forecasts for the coin available, as it is very new. With a very sparse website and no information on the founders, it may be worth waiting to see how the ecoystem develops before investing. 

It is also always worth remembering that the crypto market is highly volatile, and that the price of all tokens and coins can go down as well as up.

Will Belon DAO go up?

The coin could go up, however it could also very easily go down. It is always worth remembering that forecasts, especially long-term ones, should be viewed as indicators rather than absolutes. 

Should I invest in Belon DAO?

Investing is a highly personal endeavour. Do your own research and try to keep up-to-date on any developments within the Belon DAO ecoystem that could boost or dampen its prospects.

Remember, investing can be risky, and it is important never to invest more money than you can afford to lose.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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