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Numerous DeFi tokens swell to hundreds of percent

In the first weeks of September, every Ethereum developer has launched tokens branded with a type of food.

There came Pizza Finance, Tendies, Springroll Finance, and the projects are based on almost any food in existence.

This has caused a decline in the tokens’ value as many have realized that it is blatant copycats of more reputable schemes like Yam Finance and SushiSwap.

In a twist of events, specific food coins have begun to surge hundreds of percent from their lows.

Food-themed Ethereum tokens rise to hundreds of percent.

According to reports, three out of the six top cryptocurrencies are food tokens. Salmon (SLM), a Tron-based food farming project, had gained 3,700% in the last 24 hours while Rotten and Juiice have earned hundreds of percent per piece.

Additionally, a band of other food coin projects like Donut, Tacos, and Shroom has gained dozens of percent in the last 24 hours.

Many food coins like Rotten and Shroom benefit from traditional yield farming’s ongoing transition to non-fungible token (NFT) farming. This attempts to capitalize on the continuing digital art craze, wherein the users can spend thousands to purchase NFTs jpg and gifs.

Yield farming is not sustainable in the long term.

Notwithstanding the ongoing pivots to service the NFT market that is likely boosting the Ethereum tokens in the short term, most analysts will then assert that, in the long run, food coin farming is not justifiable.

A former analyst at Multicoin Capital, Tony Sheng is now leading a new project called Cozy Finance; in August, he commented about the food coins:

“i’m pretty scared by this grocery coin thing. not for defi insiders who know how to diff contracts and manage their own risk, but for their friends and friends of friends who show up to play the ‘game’. A big loss of funds is inevitable be it a hack or a scam.”

Others in the field have echoed the uncertainty about the yield farming’s long-term sustainability and the price of the food coins.

Ethereum founder Vitalik Buterin once pondered on:

“It’s a short-term thing. Once these enticements disappear, you could easily see the yield rates drop back down to close to 0%. […] That’s not something that could make DeFi break, but it should definitely be a sign that [this isn’t something] we should be pushing it out in front of the entire world [right now].”

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