Lark Davis shares altcoins that he expects to make millions

August 12, 2022 Editor Altcoin 0

  • Davis’s favorite tokens are JOE, GMX, AAVE, CRV, and SNX.
  • Davis believes owning cash-generating crypto tokens is vital, especially in the bear market.

According to the famous crypto bull, Lark Davis, some cryptocurrency coins will make their holders money. He said these coins share money (actual revenue) with holders of the tokens, and they pay out their users in real hard currencies like dollars and Ethereum. Davis shared these coins in his YouTube podcast earlier this week.

However, the crypto bull wouldn’t advise anyone to purchase these suggested cryptos with their life savings because buying cryptos is risky. He added that the bear market is still on and can cause any coins, including the suggested ones, to lose their value and hit zero.

Related: Four crypto chains with huge potential in 2022 according to Lark Davis

Why revenue-generating coins?

According to Davis, most of these crypto coins or tokens don’t have a lot of reasons for existence. Holders can make money by riding the hype train on those coins by selling them. But the coins with genuine reasons to hold them are few. Many don’t see the need to have a governance token since they aren’t interested in governing the platform of such tokens. Even if they’re interested, their votes won’t matter since the platform’s whales have all the power and decide what happens.

JOE

Trader Joe is one of the biggest decentralized exchanges on the Avalanche network. Davis said he has been bullish on the Avalanche network and the trader JOE token for a while. Using their native JOE token, farmers can get into launch pads on the platform to boost farming APY (Annual Percentage Yields).

Holders can earn USDC for staking a stash of JOE tokens as he does. Davis said the rate for staking is between 15 to 30 percent in the last few months, and it’s paid out in dollars. He explained the money comes from a percentage of their platform fees.

Davis took a jab at Uniswap, saying that’s what Uniswap promised but never did because “they got afraid of American regulators coming to crackdown their business.” About 0.05 percent of all the fees paid on the platform go to the people staking the JOE token. The more business the exchange does, the more money stakers make. Davis believes this will continue long-term and can be a very lucrative token to hold. He admits to having and staking some himself for the long term in the hope of getting rich.

GMX

Davis said he doesn’t own any GMX token, but he’s keeping an eye on it. GMX is a decentralized perpetual exchange similar to ByBit but on-chain, specifically on Ethereum layer-2. It’s been popular on social media recently because the cash flow rewards from this coin remain strong.

GMX payout is in Ethereum for those staking it via Arbitrum or AVAX for those staking it on the Avalanche network. Payout through AVAX is relatively new because GMX recently launched on the Avalanche network.

Staking rates are currently over 20 percent. This reward is paid in escrow through GMX tokens and ETH or AVAX. But that depends on the network the holder is staking on. The price of this coin has doubled in the last few weeks.

AAVE

Davis also said he doesn’t own any AAVE token, but he has been keeping an eye on it. Currently, AAVE is the third biggest protocol in DeFi. AAVE is making Davis’ list today because AAVE recently announced that they would soon be paying 100 percent of the fees of their new stablecoin (go) to those who stake AAVE tokens.

However, Davis admits that there are several variables to consider here. He added that it remains to be seen how profitable this would be for stakers. Most of it depends on how well they can facilitate the adoption of this stablecoin. But AAVE has proven to be a significant player in DeFi with real staying power and the ability to attract capital to their platform. If their stablecoin takes off, it could be an excellent cash-generating coin for AAVE stakers. The current price of AAVE is about 80 percent off its all-time high.

Curve token (CRV)

Curve finance is the fifth biggest DeFi protocol and the platform for swapping stablecoins for the more volatile cryptos. It’s a top DeFi protocol and a super cheap bridge to swap between Stablecoins, wrapped bitcoin (wBTC) or other alternatives. Curve finance is arguably the best on-chain platform to swap USDT for USDC.

The curve token can also be locked up in the convex finance platform. This platform allows stakers to earn CVX tokens, CRV tokens, and three curve LP (liquidity provider) tokens. Their payout is in dollars. This is what Davis does and suggests that his audience do likewise. Also, stakers can lock their curve tokens on the curved finance platform and earn three curve rewards.

However, the rewards here are a little less. The stablecoin earning through the three curve pools is about four percent. But if CRV holders stake in convex instead of directly on curved finance, they can make up to 18 percent. That’s 4 plus 14 percent rewards for staking each of the CRV and CVX tokens. Recently, the curve team announced that they would be launching a stablecoin, too, like AAVE. However, the details are still sketchy. Davis predicts that the stablecoin will be huge after launch.

Synthetics, SNX

According to Davis, this synthetic asset platform struggled for years with a few users on-chain because the gas fees on Ethereum made the platform almost unusable. Even rewards claims were dwarfed in fees. However, it is getting new life on the Ethereum layer-2 Optimism where SNX. Stakers are earning rewards paid out in the native SNX token and the synthetic dollar (SUSD).

So, SUSD token holders can take them to Curve Finance to earn more rewards. Staking rewards on SUSD tokens is about five percent APY. It’s also one of the top held and top traded coins by Ethereum whales and will be integrating atomic swaps into the curve finance platform for their synths soon.

In his conclusion, Davis said there are some other ones like balancer, which pays out protocol fees in USDC. There’s also LooksRare, an NFT marketplace that pays out in Ethereum. The crypto bull advises his audience to consider cash flow generating coins, especially in this current bear market and even after the bear market is over.