Bitcoin Forum

Atomic Wallet is offering 80% staking rewards on NIBI.
What is your view?
https://postimg.cc/mcN1vwt3


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I wrote Atomic Wallet Support a letter:
"I'm interested in staking NIBI Chain at 80%.
(1) When I go to the NIBi Chain website, it says the rewards are 67%, but you are offering 80%. How is this possible?
(2) Do the rewards automatically get reinvested, or must I do it?
(3) How often are the rewards paid?"

This is their response:

Grace Atomic
Thu, Jul 18, 7:56 AM (6 days ago)
to me

Hi there,

Thank you for your message.

Please note that APY of a staked asset in Atomic Wallet is an average approximation. We are taking data from all available staking pools and calculate the average APY based on the APY of each pool. For example, if a coin has two available staking pools, one offering a 20% APY and the other - a 10% APY, the average APY for this coin will be 15%.

APY depends on many factors of a particular blockchain: inflation rate of the network, number of found blocks, number of validators, and amount of staked coins. Rewards are distributed differently depending on the asset you staked. For example, with some assets, staking works on a mined block per block cycle, while others use epoch, cycles, and so on. All of these aspects lead to fluctuation of your staking APY. Because of that, the average APY that is displayed in the wallet may differ from the APY you are getting with your staking.

We also recommend waiting a little longer to get a more accurate value of the rewards you receive.
You'll need to claim your NIBI staking rewards manually. Since claiming is a regular transaction on the blockchain, the blockchain will charge you a network fee for it every time. The fee will be taken from your available balance, not the staking deposit. Please take a look: How do I stake NIBI?

Please let us know if we can assist you further.

The price right now may be increasing, but you need to consider the possibility of their long-term scenario. Because staking is only profitable if they can sustain the increase in market value. This is why you need to look for factors that you believe can help them at least maintain the market or can further increase their value in the trading market.

The high percentage of staking rewards may be tempting, but contemplate on whether they can maintain such profitability. Looking at their trading volume, it is still quite small and so for me, it is easy to manipulate the market. So check again about the rise, their trading volume. Do you really think their increase is organic? It may be a trap to new investors, and couple of days, their price can easily go down.

I won't dare staking micro cap coin with low volume like NIBI big fat chance it might be included in monitor list and ready for delisting but that's just me.

the APY at this point doesn't outweigh the risk

https://i.ibb.co.com/PcWZzSp/klj423.png

from SS above doesn't look so good, since staking is all about time constraint, are you sure you want to bet on your money not to dump first before you get the "promised" APY.
the APY migh well be insufficient to cover loss, but the opposite scenario can also happen of course.

You have to keep in mind that the staking APY is not measured in USD but in the NIBI token. Having such high returns means that it has very high inflation and the token will lose a lot of value very quickly. Looking at the price chart it looks like it has crashed hard in just a few months of existence. It will probably continue to go down further, to the point where you might not be profitable despite a very high APY.

https://www.talkimg.com/images/2024/07/19/46xNd.jpeg

This is something that people should really be wary on, on which APY would really be pointless no matter how big it is if the token/coin value would really be on the floor on which there's no sense if it would really be
just focusing with those huge percentages if you could really be actually be able to put up on other options. This is the main reason on why i do hate up on having those staking into those coins which arent known
not unless if we do speak about those top coins then i might be having those reconsiderations but in speaking about new coins on which those projects hadnt been able to established themselves or test out on the period of time then i wont really be taking a risks on holding it for long term. It would really be just that better if you would really be that simply doing spot trades and hold position even for a year as long you didnt up
up some TP then i would really be preferring this. Well, each one of us does have those kind of considerations and risks management. It would really be that impossible that you wont really be wary on how it works
and with those probabilities.

I expect better prices in the future (nothing to do with coin itself, I consider most of them useless but I expect bull trend where every tom, dick and harry rises), so if I were to be in your position, I would stake it.

But, if I was not expecting a bull trend then I'd have sold those coins already, because I have observed with 'stakable coins' that they take dip in value, and whatever huge apr they were giving was not worth anything in the end because tokens don't have much price in market and realization comes that you were better off selling coins instead of staking them.

Then that would be an off-topic if it has nothing to do with them :D. Not just you but we can also come up with a conclusion that many of the coins in the crypto market are useless and are only existing for the sake of the hype.

It's funny that there are also lots of people who like to ride them but if they are lucky they can also benefit on it. Shitcoins are built only for the short term but I think staking is a long-term one, so it's risky doing it using them. Like I said earlier even without staking but normal investing only can still give you an amazing reward if you are lucky enough. We all invest for the profit and the bull trend is the ones that can give us more, so waiting for it is a must.