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.

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.

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 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).”

The post What is WeBuy (WE) Token, And Why Is It Rallying Today? appeared first on CoinChapter.