The developer team defines Tendies as “a social experiment.” The token has characteristics with which it aims to be hyper-deflationary.
With enthusiasm for initial coin offerings (ICO) almost extinct, the new boom in the DeFi (decentralized finance) ecosystem attracts lovers of passing emotions and promises of easy money. Apparently, a new DeFi project arises every day.
The Tendies (TEND) token, whose name means “chicken tenders”, was one of the curious dishes recently added to the DeFi menu, which does not leave any palate unsatisfied.
People normally expect formality from a financial product. However, the marketing campaign for this token is mainly based on memes, humor, the creation of a community of fans, and mentions by renowned influencers from the crypto world.
One of these Tendies fans compared the token to the parody cryptocurrency Dogecoin (DOGE) and said that TEND is the DOGE of the DeFi era.
The same comparison occurred days ago with the Asuka token, which proved to be the first exit scam on DeFi.
At least, the Asuka token had a recognized developer. Instead, the creators of Tendies remain anonymous as they seek to persuade more people to buy this token, which they call “the next generation of autonomous and hyper-deflationary currency.”
Its developers describe Tendies as “a social experiment”. They clarify that “the same as with all investments in cryptocurrencies, risk is always present and it is necessary to take it into account before participating.”
Concerning influencers, the creator of Tron, Justin Sun, publicly stated that he has joined the Tendies Discord channel. After this, TEND apologists’ Twitter accounts began to forecast the price rise.
The initial meme and influencer campaign for this project bore fruit. Starting at USD 0.18 on July 30th, it reached a high of USD 0.93 on August 1st.
Those who bought at highs will have to wait for new memes or bombastic declarations to, possibly, recover their investment. At the time of writing this article, each Tendie is trading at USD 0.66.
Recipe for a Scam
It is now possible to hear the voices against TEND. Among them, the statement of the Francophone Association of Cryptocurrency Users, through the community account that they maintain on Twitter, is the most prominent.
This entity expressed its rejection of the incorporation of the TEND/USDT pair on Poloniex, an exchange that they accused of being able to “list anything to increase volume.”
Besides, they consider TEND as a low-value altcoin in the style of those that emerged in 2014, converted into an ERC20 token, and “with a little DeFi sauce”. According to them, all of this “is a good recipe for a scam.”
How “Hyper-Deflation” of Tendies Occurs
The protocol that governs this token includes a process by which 4% of the tokens locked in a pool are drained daily. Any user can make the call to drain the pool, which takes 1% of the drained tokens to do.
The drained tokens go to two different addresses. The first is the 0x00000 address, an Ethereum address that no one can access. There, 51% of the drained TEND is burned.
The second address, called “tendies bucket”, receives 48% of the drained tokens that are distributed among the main holders of the tokens every three days. Anyone can make the call to distribute them, but there is no special reward for whoever does it.
By Alexander Salazar