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Ribbon Finance price prediction: What is Ribbon Finance (RBN)?

By Peter Henn and Mensholong Lepcha

Edited by Alexandra Pankratyeva


Updated

Stock market graph
What might be in store for Ribbon Finance?

It aims to help people get a return on their money, but what is Ribbon Finance (RBN)?

Let's take a look and see what we can find out, and also examine some of the Ribbon Finance price predictions that were being made as of 21 October 2022. 

Ribbon finance (RBN) price prediction

Ribbon Finance explained

While cryptocurrency is a pretty new thing, there are some  things that apply to it that are long-established concepts in the world of investing. One of the biggest ideas when it comes to investing money in general is that, ultimately, you should do your best to make your money work for you. 

One of the many places in the world of the blockchain that offers users a potential place to get a return on their investments is Ribbon Finance. This protocol, based on the Ethereum (ETH) blockchain, uses two core products, Theta Vault and Theta Vault Yearn, to achieve its goals. 

Users can deposit their crypto assets in Theta Vaults and earn interest 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 Ethereum 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.

Ribbon Finance allows users to deposit their ETH, WBTC, AVAX and AAVE and earn interest as a result. 

Every blockchain-based platform needs to have its own native cryptocurrency, and Ribbon Finance has the conveniently named Ribbon Finance token, also known by its ticker handle RBN. This crypto was initially used for governance proposals, but Ribbon Finance later introduced new uses 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 the greater future RBN rewards will be.

“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. 

Incidentally, because Ribbon Finance is based on the Ethereum blockchain, it is a token, rather than a coin. You might see references to such things as a “Ribbon Finance coin price prediction”, but such terms are, technically speaking wrong. 

Four million RBN tokens were distributed to four Ethereum-based platforms, 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 about $2.2m worth of ETH.

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”.

BTC/USD

65,622.40 Price
-0.400% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,339.72 Price
-4.230% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.13 Price
-1.410% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.62 Price
+2.650% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

Koh added that Divergence Ventures had returned 719 ETH earned from selling its airdropped RBN tokens.

Ribbon Finance price history

Let's now take a look at the RBN price history. While past performance should never be taken as an indicator of future results, knowing how the token has performed can give us some much-needed context if we want to either make a Ribbon Finance price prediction or else make one of our own. 

RBN hit an all-time high not long after it launched, trading at $4.89 on 7 October 2021. However, after the aforementioned exploits were brought to light, things went downhill, with it closing the year at $2.50.

So far, 2022 has been a weak year for cryptocurrency and RBN has been no exception to the rule. An early high of $4.37 on 3 January was followed by a gradual decline which bottomed out at $0.8449 on 8 March 2022. A recovery later in the month peaked at $1.68 on 29 March, but then things got much worse, with it closing April at $0.0704.

If there were any hopes of a recovery, a series of market crashes saw the price plummet to an all-time low of $0.1619 on 18 June. Since then, there has been some recovery, with the token hitting $0.4716 on 3 August, but more downward motion, with the token trading at about $0.3115 on 21 October 2022.

At that time, there were 572,012,207.46 RBN in circulation out of a total supply of one billion. This gave the token a market cap of around $178m, making it the 141st-largest crypto by that metric. 

Ribbon Finance price predictions

With that all over and done with, let's take a look at some of the Ribbon Finance price predictions that were being made as of 21 October 2022.

It is important to remember here that price forecasts, especially for something as potentially volatile as cryptocurrency, often end up being wrong. Also, many long-term crypto price predictions are made using an algorithm, which means that they can change at a moment's notice. 

First, CoinCodex made a short-term Ribbon Finance price prediction for 2022 that saw the token initially rise to $0.324501 on 26 October before dropping to $0.184339 on 20 November. The site's technically analysis was, in keeping with the latter forecast, bearish, with 16 indicators sending negative signals compared to nine making bullish ones. 

Next, DigitalCoinPrice had an RBN price prediction that said the token could stand at $0.31 in 2022, $0.51 in 2023 and $0.66 in 2024. By 2025, the site said Ribbon Finance could be worth $0.82, before it potentially reached $0.87 in 2026, $0.98 in 2027 and broke through the dollar barrier to potentially stand at $1.15 in 2028.

By the end of the decade, Ribbon Finance could be worth $1.40. The site then made a Ribbon Finance price prediction for 2030 that saw it potentially trade at $1.72 before possibly getting to $2.14 in 2031. 

Meanwhile, CoinArbitrageBot had a rather hopeful Ribbon Finance token price prediction, suggesting that RBN could be worth just under $1.47 in 2023. The site then said it could trade at a little below $2.61 in 2024 before making a Ribbon Finance price prediction for 2025 of $4.22. In 2026, the site said RBN could trade at a little under $6.83. How much credit you give this particular forecast will depend on whether, having made sure to do your own research, you think that the token can, in the light of the recent crypto bear market, rise by around 375% over the course of the next year or so. 

Finally, the Ribbon Finance crypto price prediction from WalletInvestor suggested some gloom in the immediate future, with the token expected to drop significantly over the next 12 months. The site said that, by October 2023, the RBN token price could fall to a mere $0.02078. 

When considering an RBN token price prediction, it’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns, and never trade with money that you cannot afford to lose.

FAQs

Is Ribbon Finance a good investment?

It is hard to say. There are more than a few crypto platforms which offer what Ribbon Finance offers, so it might be hard to see what it is that Ribbon does that other protocols don’t do. We shall have to see whether or not Ribbon Finance can do something which makes it stand out in an increasingly crowded DeFi market. A lot will, at the end of the day, depend on what happens to the crypto market as a whole. 

Remember, you should always carry out your own thorough research before making an investment. Even high market cap cryptocurrencies have proved vulnerable to the current bear market, so investors should be prepared to make losses and never purchase more than they can afford to lose.

Will Ribbon Finance go up or down?

It is difficult to tell. While some sites such as CoinArbitrageBot were positive when it comes to RBN, the likes of WalletInvestor were far more downbeat in terms of an RBN price prediction. Either way, you should remember that price predictions often turn out to be wrong, and that prices can go down as well as up. 

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether RBN is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors.

Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.

Should I invest in Ribbon Finance?

Before you make a decision about whether or not to invest in Ribbon Finance, you will need to research not just RBN, but other DeFi-related coins and tokens.

Ultimately, though, this is a question that you will have to answer for yourself, after conducting your own research. Never invest more money than you can afford to lose, because prices can go down as well as up.

Markets in this article

AAVE/USD
AAVE / USD
92.744 USD
-4.485 -4.740%
AVAX/USD
Avalanche / USD
29.0586 USD
-1.3198 -4.390%
ETH/USD
Ethereum / USD
3339.72 USD
-147.31 -4.230%
WBTC/USD
WBTC/USD
66199.55 USD
-587.7 -0.880%

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