On the Ethereum network, Ribbon Finance is a decentralised finance protocol (DeFi). It offers interest-earning crypto structured products to its users using financial instruments such as options, futures, and fixed income.
Ribbon Finance’s token, RBN, saw selling pressure almost immediately after hitting an all-time high (ATH) of $4.89 in early October 2021 due to controversy regarding an investor allegedly exploiting RBN’s airdrop.
Investor sentiment for the token has improved. RBN has gained over 18% in the past week, as of 14 February. Let’s look at the project and the latest ribbon finance coin price prediction for 2022 and beyond.
Ribbon Finance outlook: Yield-earning crypto derivative products
Ribbon Finance has two core products: Theta Vault and Theta Vault Yearn. Users can deposit their crypto assets in Theta Vaults and earn yield on them. According to Ribbon Finance, Theta Vaults run automated options selling strategies that earn yield on a weekly basis.
Ribbon Finance said its vaults reduce expensive gas fees on the Ethereum network by “socialising” transaction costs across all vault depositors.“Instead of doing 3-4 transactions per week per user, the vault will do 3-4 transactions per week for thousands of users at once. This makes the user experience of using these Theta Vaults extremely straightforward and relatively cheap – deposit, wait for yields, and withdraw,” said Ribbon Finance.
Theta Vaults uses DeFi options infrastructure provider Opyn’s oTokens – they’re representations of options contracts with a strike price and expiry.“In order to run an options-writing strategy, the Vault needs to be able to mint and short oTokens. The Vault uses the users’ deposited funds to lock collateral into Opyn + mint oTokens, then sells them for a premium,” added Ribbon Finance.
Currently, Ribbon Finance allows users to deposit their ETH, WBTC, AVAX and AAVE in various yield-bearing products.
According to its website, its T-ETH-C product generates returns on ETH deposits by running a weekly automated covered call strategy, while its T-YVUSDC-P-ETH product earns yields on USDC deposits using a weekly automated ETH put-selling strategy. Ribbon Finance expects T-ETH-C to return 15.28% annual percentage yield (APY) and T-YVUSDC-P-ETH to return 27.2% APY.
Ribbon Finance said selling call options on a weekly basis allows it to compound premiums more frequently and to predict the performance of the deposited asset price on a short-term basis.
What is a ribbon finance (RBN) coin?
RBN is the native token of Ribbon Finance. Until mid-November 2021, RBN was only used for governance proposals. However, Ribbon Finance recently introduced new utilities for the token.
Holders can now stake their RBN to receive an sRBN token in exchange. According to Ribbon Finance, it will soon propose a new RBN emission (production and release) program and sSBN holders will control which vault the newly-minted RBN will go to.
Ribbon Finance added that the longer users stake their RBN tokens the more voting power they get and boost future RBN rewards.“This vote locking model helps to align incentives by giving all the powers and rewards to the longest-term RBN stakeholders. Fleeting speculators will lose out on governance powers, rewards, and protocol revenue,” said Ribbon Finance.
RBN’s total supply is capped at 1 billion units. In May 2021, Ribbon Finance announced that it would distribute 30 million RBN tokens to its community.
Four million RBN tokens were distributed to four Ethereum-based options infrastructure providers, namely Hegic, Opyn, Charm and Primitive. Twenty-one million RBN were distributed to users of Ribbon Finance’s products. Ribbon Finance’s Discord community received five million RBN tokens.
However, nearly five months later, Ribbon Finance was embroiled in controversy after it was revealed that one of its investors, crypto venture capital company Divergence Ventures, allegedly exploited the RBN airdrop to claim large quantities of RBN tokens, which were later sold for ETH worth about $2.2m.
Julian Koh, co-founder of Ribbon Finance, later claimed in a medium post that “a Divergence team member deposited multiple times into Ribbon’s vaults in order to game the airdrop”.
Koh added Divergence Ventures returned 719 ETH earned from selling its airdropped RBN tokens.
RBN price analysis: Recovering from the all-time low
According to the Ribbon Finance price chart, RBN is trading at $2.06, as of 14 February. In the past year, the price has fallen by about 9.3%.
RBN has been the 368th biggest cryptocurrency, with a market capitalisation of about $105m, according to CoinMarketCap.
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RBN hit an all-time high of $4.89 on 7 October 2021. However, after reports of its investor exploiting RBN airdrops emerged the crypto started seeing weakness.
By 15 December 2021, Ribbon Finance hit an all-time low of $1.30, data from CoinMarketCap showed. RBN closed the year at $2.50.
Ribbon Finance slightly rebounded on 15 January 2022 when the token reached an intraday high of $3.79. The retracement sent the price to an intraday low of $1.33 on 24 January.
At the time of writing (14 February), RBN was trading at $2.06. Coin Codex ranked RBN 61 among DeFi tokens, behind leaders LUNA, WBTC and DAI.
According to RBN technical analysis from CoinCodex, eight indicators were giving bullish signals and 11 were bearish.
The 3- to 21-day simple moving averages (SMA) and exponential moving averages (EMAs) were mixed. Meanwhile, the 50- and 100-day MAs indicated ‘sell’. The moving average convergence divergence (MACD) and the relative strength index (RSI) remained neutral.
RBN’s nearest support lied at the $2.01 level and its nearest resistance at $2.16, the data showed.
As of 14 February, the circulating supply of RBN stood at over 51.2 million from a total supply of 1 billion, data from CoinMarketCap showed.
RBN crypto news: Expanding to other blockchain networks
In February 2022, Ribbon Finance revealed its latest product, Ribbon Treasury, which will allow decentralised autonomous organisations (DAO) to earn interest on cryptocurrencies sitting in their treasuries.
“DAOs who are sitting on hundreds of millions of dollars of their own native token often have no way to generate yield on them,” said Ribbon Finance.
Over the past six months, Ribbon Finance has expanded its yield-earning DeFi products to various tokens like Aave’s AAVE, Avalanche’s AVAX and staked ETH.
Ribbon Finance will partner with derivatives platform Zeta Markets to develop structured products on Solana, according to a press release dated 26 January 2022.
“We know that structured products will become an important part of the evolving crypto marketplace which is why we will continue to expand our offering to other blockchain ecosystems,” said Koh.
Ribbon Finance (RBN) price prediction: Targets for 2022, 2025 and 2030
According to a short-term RBN price prediction from Coin Codex (as of 14 February), the token could rise over 35.24% to $2.71 by 19 February 2022. CoinCodex added that technical indicators showed the current sentiment for RBN as “bearish”, while the fear and greed index indicated “fear”..
“Based on our Ribbon Finance forecast, it’s now a good time to buy Ribbon Finance,” said CoinCodex.
Ribbon Finance crypto price prediction from Wallet Investor (as of 14 February) said the token can be a “bad, high-risk 1-year investment option”. Wallet Investor expected the price to reach $0.34 by the end of 2022, decline further to $0.05 by the end of 2025 and hit $0.01 in February 2027.
According to Price Prediction’s RBN/USD forecast, it could hit an average price of $2.89 in 2022. RBN/USD was expected to reach an average price of $8.44 in 2025 and $57.93 in 2030.
Digital Coin expected the Ribbon Finance future price to trade at $2.79 in 2022, move up to $4.25 in 2025 and $9.37 in 2030. Its ten-year RBN price prediction suggested the token could hit 10.86 in 2031.
When looking for Ribbon Finance future price estimates, bear in mind that analysts’ and algorithm-based predictions can be wrong. RBN predictions are based on fundamental and technical studies of the cryptocurrency’s past performance, which offers no guarantee of future results.
It’s essential to do your own research and always remember that your decision to trade depends on your attitude to risk, your expertise in the market, and your investment portfolio spread. You should never invest money that you cannot afford to lose.
Ribbon Finance’s token, RBN, saw selling pressure almost immediately after hitting an all-time high (ATH) in early October 2021 due to a controversy regarding an investor allegedly exploiting RBN’s airdrop. Investor sentiment for the token has improved since and RBN has gained over 18% in the past one week, as of 14 February.
Digital Coin expected the RBN token price to trade at $2.79 in 2022 and suggested it could hit $4.25 in 2025 and $9.37 in 2030. Meanwhile, Wallet Investor predicted the RBN token could fall to $0.05 by the end of 2025.
Digital Coin expected the RBN token price to trade above $10 by 2026. Note that algorithm-based price targets can prove to be wrong.
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