Sponge interest resurges as its V2 pre-launch campaign hits the $3.5 million milestone.
Sponge V2 will see new utility through a Play-to-Earn racing game alongside new staking mechanics.
The announcement of Sponge V2 caused a frenzy among meme coin traders, propelling $SPONGE over 500% since November.
Sponge V1 will bridge to Sponge V2, with existing holders required to stake their tokens in the project’s V2 staking contract. In return, they will receive an equivalent amount of V2 tokens plus an additional staking yield. The current yield is 235%, but this will decrease as more tokens are staked.
V1 will be discontinued on 5 February 2024, so holders must stake their tokens before then.
New investors can buy and stake Sponge V2 from the Sponge.vip website. Tokens will be locked and earn an additional staking yield until the campaign ends.
The History of Sponge
Sponge launched in May 2023, around the same time as Pepe. Early Sponge investors witnessed a similar bullish trajectory to Pepe, with Sponge hitting a $100 million market cap, netting holders up to a 100x ROI.
The meteoric rise was enabled by listings on over ten prominent exchanges and supported by 30K social media followers and 13K holders.
Sponge then pulled back alongside other meme coins but exploded following the V2 announcement.
The V2 announcement led Sponge to break its accumulation range and retest structural levels from its initial explosion. This has propelled Songe over 500% since its November lows.
However, currently priced at $0.0005457, Sponge has experienced a 51% retracement from its late January peak.
Nevertheless, Sponge has pumped 17% today, illustrating a shift in momentum and potentially presenting a solid entry point for new buyers.
Why Sponge V2 Could Be a Better Investment Than the Original Sponge
The migration from Sponge V1 to V2 could spell a lucrative investment opportunity for meme coin traders.
While Sponge V2 retains the same viral meme coin allure as the original, the second rendition boasts token utility, translating to a potentially long-term demand stream.
Furthermore, the Sponge V2 website targets “bigger and better” exchanges, with some community members interpreting this as a potential Binance or Coinbase listing.
The Sponge Twitter has also tagged the two top exchanges on some of its posts, generating speculation and a sense of excitement.
Another reason Sponge V2 is bullish is its confluence with the Bitcoin halving and looming crypto bull market. As highlighted by analyst Michael Wrubel, Sponge did a 100x in the depths of the bear market, fighting an upward battle as most crypto prices crashed.
Looking ahead, the more favorable market conditions could enable Sponge V2 to thrive, facing far less resistance and adversity along the way.
Sponge V2 P2E Game and Tokenomics Explained
Further details of Sponge V2’s P2E game will be released later. However, the updated whitepaper explains there will be a free and paid version.
Users will buy credits with the $SPONGEV2 to access the paid version. This will enable them to earn more crypto rewards.
The integration of token utility enables its value to benefit from platform activity, a notable advantage over its earlier version and other meme coins, mainly driven by hype and speculation.
Over 51% of Sponge V2 tokens are reserved for staking and P2E rewards, making it a community-centric meme coin.
There is a total supply of 150,000,000,000 $SPONGEV2.
The team has allocated 26.93% of tokens to bridge $SPONGE, 43.09% toward staking rewards, 10% to CEX liquidity, 7.5% to marketing, 8% to P2E rewards, and 4.47% to game development.
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