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What is happening with Fantom? What is Sonic? Here is everything you need to know.
With the arrival of the new Sonic Labs brand, Fantom (FTM) holders are eligible for a token swap. So what is happening when Fantom becomes Sonic?
Sonic Labs has introduced its next-generation blockchain network, the Sonic chain, which promises improved features and opportunities for digital asset enthusiasts. If you're a CoinJar user holding Fantom, here's everything you need to know about the upcoming changes and how you can make the most of this transition.
Sonic Chain and blockchain technology The Sonic chain is aiming to move to a higher level of blockchain performance. They claim that this new layer-1 platform will perform better. Here are some of the features that are promised.
Over 10,000 transactions per second (TPS) and sub-second confirmation times.
A seamless gateway to Ethereum for enhanced interoperability.
Programs like airdrops, the Innovator Fund, and Gas Monetisation to support the ecosystem.
The launch of Sonic aims to bring a wave of innovation to the blockchain space. Developers and users can expect a network optimised for speed, scalability, and efficiency.
The S token will serve as the crypto of the Sonic ecosystem, with multiple uses: -Paying for transaction fees -Staking for rewards -Running validators -Participating in governance. Upon Sonic’s launch, Fantom holders will be able to exchange 1 FTM for 1 S token via Sonic’s designated web platform.
S tokens will also be available for purchase on decentralised exchanges (DEXs) and major centralised exchanges (CEXs).
CoinJar will not automatically convert FTM to S tokens. CoinJar will continue to support FTM for the time being.
However, you can still participate in the transition by following these steps:
-Visit the official Sonic platform after its launch.
-Use the provided web interface to exchange your FTM for S tokens at a 1:1 ratio.
-Stay updated with announcements from both CoinJar and Sonic Labs for additional guidance.
There’s no immediate action required, and you can continue holding your FTM on CoinJar until we let you know otherwise.
The Fantom Opera network will remain operational, so your FTM will retain its value and utility. However, to take advantage of Sonic’s features — including governance, efficient transactions, and staking rewards — you’ll need to exchange your FTM for S tokens. Click here for information.
If your FTM is staked and locked when Sonic launches, you’ll still have the option to unlock and bridge it to the Sonic network. The Sonic platform will provide detailed instructions closer to the launch date.
Sonic Labs plans to distribute 190,500,000 S tokens through an airdrop to incentivise both Opera and Sonic users. Keep an eye on announcements to ensure you’re eligible.
For the latest updates visit the Sonic platform and stay connected with CoinJar’s announcements.
Specific risks associated with stablecoins: There is a risk that any particular stablecoin may not hold their value as against any fiat currency; or may not hold their value as against any other asset. Stablecoins carry the following risks:
Depegging events: Depegging events may occur with stablecoins that fail to maintain adequate controls and risk mitigants. A depegging event is when the value of the stablecoin no longer matches the value of the underlying asset. This could result in a loss of some or all of your investment.
• Counterparty risk: Counterparty risk arises when an asset is backed by collateral, involving a third party maintaining the collateral, which introduces risk if the party becomes insolvent or fails to maintain it.
• Redemption risk: Redemption risk refers to the possibility that an asset's ability to be redeemed for underlying collateral may not be as anticipated during market fluctuations or operational issues.
• Collateral risk: Collateral risk refers to the possibility of the collateral's value declining or becoming volatile, potentially impacting the asset's stability, particularly when it is another crypto-asset.
• Exchange rate fluctuations: Stablecoins, often denominated in US Dollars, expose investors to fluctuations in the USD:GBP exchange rate.
• Algorithmic risk: Algorithm risk refers to the possibility of an asset's stability being compromised due to unexpected failure or behaviour of the underlying algorithm, potentially leading to loss of value.
Specific risks associated with meme coins: 'Meme coins' (e.g. DOGE, SHIB, PEPE) are crypto-assets whose value is driven primarily by community interest and online trends. Meme coins carry the following risks:
• Volatility risk: Meme coins can have extreme price volatility, often experiencing rapid and unpredictable price fluctuations within short periods. The value of meme coins can be influenced by social media trends, celebrity endorsements, and other factors unrelated to traditional investment fundamentals.
• Lack of utility: Meme coins often lack intrinsic value or utility, being primarily driven by community interest, online trends, and speculative trading.
• Market manipulation: Meme coins may be susceptible to increased risk of market manipulation including 'pump-and-dump' schemes, where the price is artificially inflated followed by a sudden crash.
• Lack of transparency: Meme coins may have limited available information about their development teams, goals, and financials. This lack of transparency can make it challenging to assess the credibility and potential of a meme coin accurately.
• Emotional investing: Meme coins often garner strong emotional reactions from investors, leading to impulsive decisions. Emotional trading activity can amplify losses. Specific risks associated with DeFi tokens
Decentralised Finance (or 'DeFi') tokens (e.g. UNI, AAVE) are crypto-assets linked to financial applications and protocols built on decentralised blockchain technology.
DeFi tokens carry the following risks:Smart contract risk: DeFi relies heavily on smart contracts. Even a minor coding error or oversight can lead to a contract being exploited, potentially resulting in significant losses for DeFi tokens.
Regulatory risk: DeFi operates in a decentralised manner, often without intermediaries or financial crime controls. Regulatory bodies across jurisdictions might introduce new regulations impacting the use, value, or legality of certain DeFi protocols or assets. Rug-pulls / Exit scams: Some DeFi projects might be launched by anonymous or pseudonymous teams, increasing the risk of "rug pulls" where developers abandon the project and withdraw funds, leaving investors with worthless tokens.
Data/oracle risk: DeFi protocols often rely on external data sources or 'oracles. Manipulation or inaccuracies in these data sources can lead to unintended financial outcomes within the protocols.
Protocol complexity: The complexity of some DeFi protocols can make it difficult for average users to fully understand the mechanisms and associated risks.
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