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November 07, 2022

Tribe Cryptocurrency: Is it a Good Investment?

What Is Tribe?

Tribe (TRIBE) is an Ethereum-based governance token that is currently tradable on 25 cryptocurrency exchanges and is designed to stay pegged at a 1:1 ratio (i.e., $1.00 per token) with the U.S. dollar at all times.

Tribe as a project is run as a “Decentralized Autonomous Organization” (DAO), aka it’s fully decentralized because it’s managed by a community through decentralized contracts rather than any single governing authority or issuing entity.

Tribe’s FEI token can be bought from the DAO directly and traded on open crypto exchanges or through peer-to-peer transactions. But investors can’t sell their tokens back to the DAO unless the value goes above the “peg.”

As a practical matter, that means the supply of Tribe tokens can be carefully managed to achieve its 1:1 “peg” to the dollar. Currently, Tribe’s token supply is fixed at a maximum of one billion, with a current circulating supply of 453,448,622.

But before we dig any deeper into where Tribe fits into the crypto-verse and whether it’s a good bet for cryptocurrency investors, it’s essential to understand the concept of a stablecoin in the first place and the FEI protocol for which Tribe is the governing token.

What Is Tribe Used For?

Founded in early 2021, the objective of Tribe’s FEI protocol as a stablecoin platform is to establish a consistent monetary spine for DeFi applications by creating a fair, liquid, and scalable market for its FEI stablecoin that’s pegged at a $1.00 ETH/USD price.

Other stablecoins that rely on fiat-collateralized, crypto-collateralized, or non-collateralized models are dependent on issuance by centralized entities, an over-collateralized issuance on-chain, or based on seigniorage—all of which have proven to be capitally inefficient, subject to regulatory scrutiny, and prone to volatility amplification and liquidity crises.

By contrast, the DeFi-native, ERC-20FEI protocol is fully decentralized (“FEI DAO”). That means it’s minimally dependent on centralized assets or protocols while simultaneously pioneering a direct incentive model whereby a protocol-controlled value (PCV) is the essential driver of liquidity.

As the core governance token (versus a utility token, which we’ll get to later) of the FEI protocol, Tribe can be used to vote on FEI protocol upgrades, add new bonding curves, modulate price functions, and adjust FEI stablecoin monetary policy, like tweaking the Protocol Controlled Value (PCV) for new funding or existing fees.

Ultimately, all of these levers working in combination lead to the establishment of the first stablecoin platform that is truly decentralized and independently liquid.

Tribe Cryptocurrency: How Does It Perform?

How Has Tribe Performed in the Past?

Despite not performing particularly well since its launch — dropping more than 70% in its first year of trading — Tribe’s current exchange price has recently leveled out, making it not dissimilar from many other ICOs (initial coin offerings) which, like traditional stock market IPOs, see a lot of initial investor enthusiasm and demand before finding a baseline from which to grow.

Since August 2022, Tribe has begun to make consistent gains again, and is now considered “bullish” by most crypto investors and analysts over the long haul — in large part due to its function as a protocol governance token.

Tribe’s Future Price Prediction

According to CoinCodex, the value of Tribe is predicted to rise by 3.23% over the next month and based on various technical market indicators it’s a good time for investors to buy since Tribe is perceived as undervalued.

Another reason Tribe is expected to increase in value in the long term is due to historical trends in other parts of the technology sector. 

Assuming Tribe’s adoption and growth trajectories follow those of other pioneering tech platforms and protocols, Tribe’s market value from its current exchange price could increase by more than sevenfold over the next three years if it tracks to companies like Google, Facebook, and Twitter.

Tribe FAQs

1. Is Tribe on Coinbase?

Yes. Tribe (TRIBE) is traded on Coinbase, as well as 25 other cryptocurrency exchanges, like Binance, Bitrue, BKEX, and BTCEX. Currently, the most popular exchange for Tribe is Bibox.

2. What Is the Current Price of Tribe?

The current price of Tribe is $0.25 per token at the time this article was published. It’s all-time high was $2.49 on April 3, 2021. The typical investor hold time for Tribe is 8 days. This is the average time that customers on exchanges like Bibox hold before selling or trading Tribe. In general, the longer the “hold time” the greater confidence investors have that the price will go up. Shorter hold times typically reflect greater volatility and more trading volume.

3. Is Tribe a Utility Token?

There are various types of cryptocurrency tokens that investors can buy, such as a utility token, which confers usage rights to a specific service or experience, while commodity tokens like NFTs typically establish fractional ownership in something physical like a penthouse, a song, or a piece of art.

Governance tokens by contrast represent voting and other exclusive decision-making rights in the running and management of a blockchain community or crypto asset, including block size, inflation rates, adding or removing features, alternations to governance parameters, risk tolerance, or exchange listing.

In the case of Tribe, that means token owners have a direct say in the community’s decisions related to the FEI protocol as well as the FEI stablecoin itself. 

4. When Did Tribe Coin Come Out?

Tribe’s decentralized FEI platform and stablecoin were launched by California-based entrepreneurs Joey Santoro, Brianna Montgomery, and Sebastian Delgado, and began trading officially on March 31, 2021.

Is Tribe a Good Investment?

Any experienced cryptocurrency analyst or investor will tell you that determining whether any crypto asset is a good investment requires much more information than just the past and current exchange trading price.

Predicting future cryptocurrency and token asset values requires careful consideration of market indicators, technical indicators, past price performance, on-chain and off-chain metrics, and perhaps most importantly, essential investor sentiment (i.e., optimism v. pessimism). 

As any old-school stockbroker will remind you — every market for anything is as much about emotion as it is about actual value. This goes for any coin, whether an established powerhouse like Bitcoin (BTC) or an upstart meme coin.

All that said, Tribe has had a good run recently and the token’s long-term fundamentals according to most crypto analysts are bullish. Over the past 30 days, Tribe has had 16/30 (53%) “green” days. And according to historical data from several exchanges, it’s currently profitable to buy Tribe.

Its current market cap of $111.12M signals that Tribe is considered a strong investment by the market, while its currently low exchange price indicates that there’s a lot of room to grow.

Overall, Tribe is #147 of all tradable assets on Coinbase and is currently ranked #84 in the Ethereum (ERC20) tokens sector. 59% of Coinbase users are also actively buying Tribe, which means the majority of investors are increasing their net positions in Tribe rather than shedding it.

The Bottom Line on Tribe

Tribe’s listing on both Coinbase and Binance (plus two dozen other exchanges), strong liquidity, high market cap, and the fact that its trading above the 200-day simple moving average (SMA) reflect confidence in the project from investors and the crypto markets in general.

Its -73% drop since its launch last year also creates fertile conditions for growth and steadily increasing value as a governing protocol token.

How Can a Beginner Get Started With Crypto?

Whether you’re new to crypto investing or are just looking to diversify your assets, jumping straight into a single cryptocurrency to start your crypto investing journey can be daunting.

Ember Fund is the first investment and crypto asset management platform offering investors the change to buy into a professionally managed crypto portfolio with just a few moments on their phone, no investment experience required. We combine the traditional hedge-fund concept with innovative and cutting-edge technology that’s as easy to access as unlocking your phone and opening the app. 

Looking to get started? Just download the Ember Fund app, enter your information, and transfer cryptocurrency into your Ember Fund Wallet. You can also transfer funds directly from your bank account or credit card through Apple Pay.

Ember Fund’s portfolios are allocated across a wide range of digital assets weighted by market cap and is powered by a proprietary fintech app. 

Through diversified crypto index investing, Ember Fund offers a superior entry point into crypto investing that offers the expertise of crypto veterans while leaving you in ultimate control of your investment, even in times of market volatility. 

Diversified crypto funds mitigate investor risk, reduce exposure to intense market fluctuations, and make it simpler for first-time crypto investors to enter this investment space — all while putting decisions in the hands of experts

Our indexes include thoughtful analysis and auto-rebalancing so that your exposure to certain assets rebalance through volatile market conditions. 

Not to mention, because we’re all about making crypto investing accessible to everyone, we reward you for your efforts to learn about crypto. Reap the rewards of our Learn-to-Earn Program where you can earn Bitcoin just by logging into the app every day and learning something new. 

Ready to get started? Click here to explore what Ember has to offer, or download the app here and get started with as little as $5

Sources:

Decentralized Autonomous Organization (DAO): Definition, Purpose, and Example | Investopedia

Tribe (TRIBE) Price, Chart, Value & Market Cap | CoinCodex

What Are Governance Tokens? | Binance Academy

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