Binance Deactivating Token Trading, DigiToads Utility Functions Give This Meme Coin A Major Liquidity Boost

It has been a bad week for Binance. Several top executives, including the Chief Strategy Officer, announced they would be leaving the company. This follows recent events where the SEC forced Binance to remove several trading pairs and halt US deposits.

On-chain data shows a significant increase in outflows from Binance, and since the start of June, investors have pulled nearly $4 billion from the platform. The increased regulatory pressure has provided a tailwind for new DeFi projects as liquidity leaves CEXs in favor of DeFi. A prime example is DigiToads (TOADS), a protocol free from third parties, and TOADS is currently enjoying a major liquidity boost.

Binance Outflows Creep Toward $4 Billion 

Binance engages in a war on all sides, and the SEC under Gary Gensler has been hell-bent on making life difficult for Binance CEO CZ. A cascade of events has put pressure on the CEX. Paxos was forced to stop issuing $BUSD earlier this year, causing the total supply to decline. 

The replacement stablecoin $TUSD has encountered issues of its own, and now institutional giants wade into crypto wanting to absorb market share. Binance continues to dominate regarding liquidity and trading volume, making it an obvious target for these firms. Not to forget the increased regulatory pressure Binance faces in Europe. 

Investors have sufficient cause to withdraw their funds, and liquidity rapidly surges into DeFi, much to the benefit of ERC20 coins and top DeFi projects.

DigiToads (TOADS) and the Rise of Permissionless Protocols 

DigiToads has been a significant beneficiary of this liquidity movement, and the price of $TOADS has swelled throughout the presale. This up-and-coming protocol has proved highly popular with investors who want to gain exposure to the new generation of DeFi projects and has already raised $5.95 million.

DigiToads has built an intricate flywheel economy within the broader Ethereum (ETH) ecosystem consisting of a native DEX, an NFT staking mechanic, a taxation system, a treasury management protocol, deflationary tokenomics, and a play-to-earn game.

The Swamp (the DigiToads ecosystem) works harmoniously with each part generating revenue and ultimately distributing it to $TOADS holders through airdrops, payouts, or deflation. 

The Trading Post (the native DEX) creates revenue for the ecosystem and conserves all the created value from swaps with The Swamp. The Platinum Toads initiative (treasury management) ensures a constantly expanding treasury by allowing the best on-chain traders from the community to trade with a portion of the treasury actively.

This inbuilt asset management aspect of the protocol was popular with analysts. They cited it repeatedly when forecasting an 800% surge for $TOADS within the next quarter.  

But the great distributor of value to $TOADS holders will be the aggressive deflationary tokenomics models. Everyone entering and leaving the ecosystem must pay the Toad Tax, and smart contracts burn 2% of each transaction.

Hence the burn rate of $TOADS has a connection to ecosystem activity, which is very similar to Ethereum’s (ETH) EIP-1559. As the ecosystem grows and activity increases, the burn rate will increase. This drastic reduction in the $TOADS supply will naturally cause the price to soar. 

The Swamp is a complex web of smart contracts that run fully on-chain. It is a permissionless protocol with no counterparty risk, and as regulatory pressure increases, expect a further influx of assets into DeFi. 

Closing Thoughts: Liquidity Moves to DeFi