The cryptocurrency groupies are expecting the biggest update of Ethereum (ETH) to Ethereum 2 (ETH2). Although the release date of ETH2 has not been confirmed, investors keep staking their funding into the pool to earn passive income. The latest challenger to such popularity is the EverGrow Coin (EGC), with a promising 8% of each buy or sell transaction divided across all holders, but its price fluctuation might look scary to some people. A relatively safe option to generate passive income for those who look for stability can fall to the HUH Token (HUH).
ETH2 is an upgrade to the Ethereum network for improving security and scalability. This upgrade involves ETH shifting the current mining model to a “staking model”, the active participation of transaction validation on a proof-of-stake (PoS) blockchain. Anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn staking rewards.
The current APR of ETH2 staking is 5.3%, given the huge appreciation of ETH in prices. If the project is successfully deployed, the net annual return could be even higher. But a risk to be aware of is the possibility of losing your staked assets due to slashing – the penalty enforced at the protocol level associated with a network or validator failure. Moreover, there is no way to withdraw the staked money until the completion of updates, reducing the financial liquidity of investors.
But when it comes to the star of the crypto space now must be the EGC released six weeks ago. It has broken all previous records: half of the total token supply was burned on launch, and it crossed the mark of 65,000 holders and $1.5 billion market capitalisation after gaining 28,000% within just a few weeks.
The main reason for the buzz is probably EGC’s game-changing approach by rewarding the holders in a stable, regulated, Binance-pegged currency. Each time a buy or sell transaction is made, 8% of it is divided across all holders. By 9th November, EGC had paid over $20 million to its holder, which analysts said it is twice as rewarding as the nearest competition.
However, one thing that could freak the investor away from EGC is its lack of price stability. In last week, it went ups and downs by about 20% per day. Yes, fluctuation has been the characteristic of most cryptocurrencies, but it just sounds contradicting to people looking for a steady passive return, particularly to the new players in the market.
An upcoming coin named HUH Token could be an alternative for passive earning. Its website has confirmed that there will be a plan for static rewards based on stability. Like EGC, holders earn certain shares each time a buy or sell transaction is done, which the developers describe as “redistribution”.
HUH is at the presale stage and will go public on 6th December. With its focus on “community care” that will try to ensure the interest and growth of its community, and the sharing approach seemingly less aggressive than that of EGC, the risk of swings in trades should be not a risk. It is just that the details regarding the rate of “redistribution” await their announcement. HUH might be a token worthy of putting on the watch list for those trying to make passive income.