What is WeBuy (WE) Token, And Why Is It Rallying Today?


Key Takeaways:

  • WeBuy token jumped 17% on Sep 19 and 29% the previous month.
  • The lack of on-chain data complicates the analysis.
  • The project allows users to rent NFTs instead of buying them.
What is WeBuy (WE) Token, And Why Is It Rallying Today?

YEREVAN (CoinChapter.com) — WeBuy (WE) is the utility token on the WeRent platform that lets users rent and lend non-fungible token (NFT) assets. The coin jumped 17% to $0.34 on Sep 19, bringing the previous month’s gains to 29%.

Notably, the uptick did nothing to remedy the bearish sentiment on higher time-frame WE charts. The token still traded 98% below its all-time high of $16.6 in December 2020.

WeBuy token traded 98% below its all-time high. Source: CoinMarketCap.com
WeBuy token traded 98% below its all-time high. Source: CoinMarketCap.com

WE trading volumes dropped

Meanwhile, the reasons behind the recent jump are not obvious. The WeRent platform’s official X.com (Twitter) page lacks fundamental news, except for the 26% increase in circulating supply on Sep 12, arguably not enough to push the token 17% days after the event.

According to the announcement, the circulating supply now stands at just under 300 million WE, bringing the token’s market cap to over $100 million. Notably, the WeBuy trading volumes dropped 34%, parallel to the price jump, which could mean the traders chose to HODL their WE in the hope of another leg up.

However, the lack of on-chain data does not support the theory. Thus, traders should be cautious of a possible bearish reversal and do their research before considering an investment.

Moreover, the token is available on two exchanges only. HTX exchange, the rebranded Huobi, holds 77% of the token’s liquidity, which means fewer players might be behind the price increase.

WeBuy token markets. Source CoinMarketCap.com
WeBuy token markets. Source: CoinMarketCap.com

WeBuy Token Enable NFT Incomes

According to the project’s website, WeBuy generates income for NFT owners and renters.

NFT rentals will be for individuals that need an NFT for a specific period. Ranging from art to utility NFTs, renting will not be limited to PFPs [pictures-for-profile].

read the whitepaper.

The whitepaper also states that the ecosystem will have a total supply of 2.5 billion WE. 25% of that supply, or 625 million coins, will be dedicated to “liquidity and staking incentives,” another 20% is dedicated to token sales, while 40% will stay at the Treasury.

Additionally, the project’s roadmap raises several questions. “Obtain a strategic partnership with the NFT marketplace” is the first goal for Q3/2023.

However, it doesn’t mention the marketplace itself. Other goals are equally vague, such as “co-host an NFT Event” and “onboard NFT project to the WeRent ecosystem.” Q4/2024 goals don’t make more sense, with bullet points such as “NFT, Token (Rewards/Airdrops).”

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