What is Libracol and how does it work?
Libracol is the token of the Libraprotocol project.The Libracol token is a new cryptocurrency.
It will be launched from May 15, 2022, offering for small or large investors the possibility of receiving 50% more token.
He is designated to reward long-term holders and charges sellers a 10 percent fee, with part of that fee going back to existing holders.
There will also be another ICO from June 16 to July 16, 2022 where investors can get 25% more tokens.
How does Libracol work?
Libracol is a young cryptocurrency, which are digital currencies that only exist online and hope to be used as a medium of exchange. Like more popular cryptocurrencies such as Bitcoin and Ethereum.
Libracol is powered by distributed ledger technology such as blockchain.
This young Libracol cryptocurrency was created on the Binance Smart Chain blockchain and has no capitalization yet.
Libracol was designed to encourage long-term investment and discourage selling.
It does this by charging sellers a 10% fee, with half of the fee going to existing Libracol holders and the other half to be used in a liquidity pool (in a bid to better maintain price stability).
The developers of Libracol also manually reduce the amount of Libracol in circulation on a regular basis in an effort to reduce supply and increase the price.
Risks to consider
Like all cryptocurrencies, Libracol is a speculative asset.You should be prepared for the possibility of losing some or all of your investment if you choose to buy Libracol or other cryptocurrencies.Here are some other risks to consider.
Volatility:
As of May 5, 2022, the Libracol token has not been introduced.It is necessary to expect a high price volatility during its introduction.Since cryptocurrencies have no underlying value, your return is based on the price at which you can sell it to someone else.
Regulation:
Cryptocurrencies are fairly new and governments are just beginning to understand what they are and what their impact might be.China has been forceful in its response, banning cryptocurrencies earlier this year due to the financial risks they pose and the speculative trade they have created.
Regulation could also come in the form of higher tax rates on cryptocurrency earnings.Check out Bankrate’s cryptocurrency tax guide to learn about the basic tax rules for Bitcoin, Ethereum and more.
Speculative Bubble:
While bubbles are more easily seen in hindsight, there are signs that cryptocurrencies are in a current speculative frenzy.The name Libracol itself seems to have been chosen to capitalize on the current craze for serious investors.
Conclusion
Libracol is a cryptocurrency designed to encourage long-term investment and discourage selling, but it will remain a volatile asset in its early life as a young cryptocurrency.
