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Tectonic (TONIC) Crypto: What It Is and Should You Invest?


JONIC is the native token of the Tectonic protocol that operates lending and borrowing services in the decentralized finance (DeFi) space. As it is a relatively new token, investors should beware of price volatility if they decide to buy TONIC.

Wondering if TONIC is another meme token or if it could be a legit project? Here is the full crypto tectonic breakdown.

What is Crypto Tectonics?

TONIC is a crypto token launched in December 2021. The total supply is 500 trillion and the price of a TONIC is a fraction of a penny. Based on the current token economy – or tokenomics – the distribution looks like this:

  • 23% goes to the Tectonic team
  • 0.1% is used for airdrops or coin marketing
  • 13% goes to the ecosystem reserve
  • 13% goes to network security and maintenance
  • 50.9% is dedicated to community incentives and rewards

TONIC is the native governance token of the Tectonic protocol. The Tectonic protocol is a DeFi platform powered by CRONOS – a blockchain supported by Crypto.com.

The platform allows two main functions: lending and borrowing. Vendors can earn passive income from their assets on the platform. Users can borrow crypto assets for functions such as staking, yield farming, and short-term trading by pledging their own assets as collateral.

Tectonic currently supports eight crypto assets for lending and borrowing: TrueUSD (TUSD), Dai Stablecoin (DAI), Tether (USDT), USD Coin (USDC), Wrapped Bitcoin (WBTC), Wrapped Ethereum (WETH), Tectonic (TONIC) and Cronos (CRO).

But where does the TONIC token come from? Well, currently there is actually no real use case for the token. However, the Tectonic Protocol aims to introduce staking to reward token holders, secure the network, support the growth of the ecosystem growth, and give the utility of TONIC in the future.

Is Tectonic Cryptography Legit?

The Tectonic protocol is a fork of the Compound protocol, which has been noted as one of the most secure protocols. Tectonic’s transactions have also been audited by Slowmist, a blockchain ecosystem security company.

The Tectonic platform and the TONIC token itself are however very early in their development. The usefulness of the token is currently questionable and as such, buying TONIC carries extreme risk.

Tectonic Crypto Price Prediction

Average price estimates for TONIC were made by two crypto price forecasters, Telegaon and CryptoPredictions.com. Both companies use up-to-date market data to set up their price predictions. Please note that CryptoPredictions price predictions are based on their year-end estimates.

Year Telegaon price estimate Estimation of encryption predictions
2022 $0.00000132 0.000000282438277
2023 $0.00000219 0.000000347290868
2024 $0.00000278 0.000000245007533
2025 $0.00000489 0.000000456122187
2026 $0.00000598 0.000000536006746

Is Tectonic Crypto a good investment?

TONIC is one of the cheapest tokens to buy – over a billion tokens can be purchased for less than $200 at current market prices. This does not mean that TONIC will significantly appreciate in value, however, and investors should approach with caution.

On the other hand, if the current downturn in the crypto market subsides and the Tectonic protocol establishes initiatives to increase the demand for the TONIC token, the price could increase significantly.

As with any investment, never invest more in TONIC than you are willing to lose.

Where can I buy Tectonic Crypto?

TONIC can only be purchased from three exchanges. These are:

  • Crypto.com
  • HotBit
  • VVS Finance

Crypto.com

The exchange to buy TONIC that most people are probably familiar with is Crypto.com. Users can buy TONIC with USDT or USDC.

HotBit

Another exchange people can buy TONIC on is HotBit. HotBit will only accept USDT from those who wish to purchase TONIC tokens.

VVS Finance

Alternatively, there is an option to buy TONIC from a decentralized exchange, VVS Finance. TONIC can be purchased on VVS Finance with USDC, Wrapped CRO (WCRO) or VVS Finance (VVS) tokens.

Final grip

Anyone considering buying the TONIC token should remain skeptical for now. Investors may want to see how the described plan plays out and whether adoption picks up before buying.

Tectonic Cryptography FAQ

  • Does crypto tectonics have a future?
    • The Tectonic protocol has described how TONIC will be used for staking in the future. For now, its usefulness is limited.
  • What is Crypto Tectonics?
    • The Tectonic protocol is a DeFi protocol for lending and borrowing. Its native governance token is TONIC.
  • Is a Tectonic part valuable?
    • The value of the TONIC token has largely been untested so far, the value of a TONIC token remains well below $0.01. The use cases are limited as it stands, but staking initiatives could increase demand for the token in the future.
  • Is Tectonic crypto a good investment?
    • The Tectonic protocol and TONIC token are still in early development. Upside or downside potential is unknown, but volatile price action should be expected.

Information is accurate as of June 13, 2022 and subject to change.

This article originally appeared on GOBankingRates.com: Tectonic (TONIC) Crypto: What It Is and Should You Invest?

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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