An Experiment: How Much Money Can You Make By Investing in Crypto (PENDLE) PART I

Drake Flyer
2 min readDec 12, 2021

In this article we will be discussing investing in a specifically chosen cryptocurrency. We will consider several criteria: low market cap, a solid project that is active and has potential value, current price. After several weeks or months, we will go over our gains (or losses).

Market cap

Market capitalization or market cap is the market value of outstanding shares or in our case cryptocurrency tokens. Market capitalization is equal to the share/token price multiplied by the number of shares outstanding. The higher is it, the harder it is to move the price up or low. The lower it is, the easier we can move the price (hence higher volatility).

In our case we are going to choose an extremely low market cap cryptocurrency called PENDLE. On 12.12.2021 at 10:41 the market cap of PENDLE is $22 015 444.

Value Of The Project

PENDLE is a relatively new project (<1 year) with an interesting mechanic that should have a potential real-life value.

Pendle is a protocol that enables the tokenization and trading of future yield. You can split your revenue-yielding tokens in OTs (Original Tokens) and YTs (Yield Tokens) set at specific expiry date. You can then use the YT to sell your future yield and claim your original tokens back on expiry.

Easily said: you can lock your tokens and instead of waiting for weekly/monthly yield, you can immediately claim the yield!

The value behind this is amazing, after all, yield often decreases with time — especially if you lock your money on exchanges.

Current Price

For our experiment we want a token that is oversold. This will massively increase our chances of making money. On 12.12.2021 at 10:41 the value of 1 PENDLE is $0.2921. Down from its maximum of $2.27, can give us potential massive returns. This makes PENDLE perfect for our experiment.

If you like to play around and discover new tokens this might be the perfect time to inform yourself about PENDLE. If you find the project useful and interesting, then support it!

Disclaimer

I own PENDLE. I have bought PENDLE at $0,32 and $0,295. I will let you know how things turn out in the next few weeks!

Oh, this is not financial advice. Anything said is my non-exhaustive personal interpretation of available data at the time, and should not be construed as financial advice. Crypto and DeFi are risky, and you stand the risk of losing all or some of the money you put in.

Read: Part II and Part III

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Drake Flyer

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