BabyCake Exposes Users to Extreme Rewards at the Expense of Massive Volatility

Transactions on BabyCake are taxed at 15-16% with 7% paid back to BABYCAKE holders in the form of CAKE.

By
Robert D. Knight
on
July 27, 2021
Category:
BSC News

Hello BabyCakes

BabyCake claims to be the first CAKE reflection token on Binance Smart Chain, with massive redistribution rewards for holding. However, those rewards come at a price with token volatility a factor that users may wish to consider before purchasing.

BabyCake’s reflection token ($BABYCAKE) has only been live for over a week according to Dex Guru. The project has already amassed a large community of ardent followers in the process. The Telegram community sits at over 40,000 strong and also has a voice chat function that is heavily frequented by a highly engaged user base.

With BabyCake, every transaction incurs a transaction fee. The tokenomics are outlined on the website but currently the site can't be reached.

Buy fees are 15%, while sell fees are 16%. 7% of that fee then goes to buy CAKE tokens from PancakeSwap, which are automatically redistributed to BabyCake holders on an hourly basis. The remaining 3% is allocated to the liquidity pool, while 5% is split between token buybacks and the team/marketing fund. 

BabyCake is proving to be a volatile asset (Source: DexGuru)

Despite the active engagement of its users, the price of $BABYCAKE has demonstrated considerable volatility over the last 7 days. At the time of press, the token was trading at $0.00032057.

This was down 67.9% from an all-time high of $0.00100686 on July 23rd, and up 58.6% on an all-time low of $0.00020373 on July 22nd.


BabyCake Explained

BabyCake is just out of the oven and users should be sure to vet the project before diving in deep. Project BabyCake aims to distribute CAKE rewards to its users on an hourly basis.

Although the team has clarified on their webpage that, “Pay-outs to holders may not occur every hour if trading volume is low.” 

The payout occurs automatically so that users are not required to claim their CAKE tokens. In order to qualify for a payout of CAKE, users must hold at least 200,000 BABYCAKE tokens. At the time of press, that number of BABYCAKE is equivalent to roughly $64.

The BabyCake concept of taxing transactions and paying back part of the fees to token holders was originally pioneered by SafeMoon and has since been adopted by a number of other projects including MoonLift

In these instances however, the taxed token and pay-out token were the same. BabyCake differentiates itself by paying users in CAKE, the native token of PancakeSwap.

PancakeSwap is the leading decentralized exchange on Binance Smart Chain, with the highest trading volumes in the market.

Where to find BabyCake:

Website | Telegram | Twitter | Medium |


Tags:
Robert D. Knight

Robert D. Knight is an experienced journalist and copywriter who has been working in crypto for 4+ years. His bags are heavy and he also hodls some cryptocurrency.

Text Link

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.