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How do so many coins offer absurd APRs for staking?
by aantix 5y ago
How do so many coins offer absurd APRs for staking?
- reducesuffering 5y agoIt's the same principle as junk bonds. The less people believe that their principle will be recovered, the higher the APR to incentivize buyers. If some $100 coin offers you 100% APR, you best believe it's not likely that your original coin is still going to be worth $100 at the end of the year. More likely you'll have 2 coins worth $50 each now.
- wmf 5y agoThere's a massive bubble with people throwing money into anything and everything.
- hrhrhrhrhr 5y agoThe APR is paid in the coin itself, not dollars, so they just inflate the supply to pay the "yield".