Would you rather buy UMA or Synthetix given the following facts?

Introduction

To start, we want to say that we do like the concept brought by UMA Protocol to create Synthetic assets by yourself for any markets.

So if you are into DeFi, you heard about UMA’s Initial UniSwap Listing of Wednesday 29th April and also know that UMA token price has skyrocketed ten fold given the tiny float of 2M tokens.

And if you are interested in Synthetic Assets, you have also heard about Synthetix.

So let’s make it simple: which one should you buy if you want to profit from the synthetic assets market?

Let’s take a quick look at both projects and see if their respective valuation make any sense.

Community

SNX

  • 17.6K followers on Twitter

  • 7.2K discord users

  • You get some of the brightest mind in DeFi: The Professor, Degen Spartan and the other Spartans.

UMA

  • 3.7K followers on Twitter

  • 300 slack members

Holders

SNX

  • 14024 addresses

UMA

  • 256 addresses

Key metrics

SNX

  • Total synthetic market cap: $16.5M USD (sETH, sBTC, etc)

  • Total staking ratio: 91% of Total SNX supply is staked

  • Network collateralization ratio: 848%

  • Trading volume last 24 hours: $2M USD

  • Generates weekly dividends in sUSD.

UMA

  • It does not have such metrics, as the project is not yet live.

Market capitalization

SNX $140M vs UMA of $120M.

Conclusion

If this is not FOMO, we don’t know what is it. UMA market cap does not make any sense when you compare it with Synthetix, the other player in the synthetic assets market.

We don’t have a crystal ball to predict the future and we cannot say if UMA will continue its crazy bull run. In crypto everything is possible.

But what we can say is that any people interested in the Synthetic Assets market and investing in UMA at $1.2 right now, is either a fool or… a FOMOer. There is no way to justify such a ludicrous valuation for a project which is “just” getting started and has wrongly advertised that they were offering their tokens at the initial seed round with a tiny float.

UMA Protocol is a great project but we won’t buy any tokens at these absurd prices.

We are long Synthetix.

Thanks for reading

Secret Salsa


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