Rainbow Token Review: Legit or Scam?

Hello! How are you doing? It hasn’t been the best of times for me. I got an AdSense rejection yesterday. I have been grumpy, moody, and tired. But, I know I have to shake off whatever I’m feeling and show up every day (well, almost every day) for you, my dear reader.

Today, we are going to be checking out rainbow token. The honest to God truth is that this coin hasn’t pumped on coin market cap, it however has been trending on coinmarketcap.com for days. 

If you are curious, perhaps you are about to buy the rainbow token or maybe you are already an investor that desires a third-party opinion. You are on the right website. 

I have done the necessary check and double-check, on your behalf. All you need to do is to pay attention to the information you are about to be exposed to.

Before we begin, let get something straight.

I’m not a banker or a financial expert. I will not be held responsible for your financial decision or indecision. This article is just a guide and nothing more.

Are you Ready?  Let’s Go!

A little about the $Rainbow token.

According to coinmarketcap.com, “$RAINBOW is a hyper-deflationary, ethical Defi token sitting on the Binance Smart Chain which combines 7 features into a single crypto asset. It is a project launched on the 18th August 2021 and is developed and maintained by a team situated in the UK. It has developed and launched Bifrost, a decentralized token launchpad service that specializes in user-friendliness, flexibility, and low fees.”

Personal Observation

This sounds interesting to me. First of all, the rainbow token is a meme coin.  As a reviewer, I become skeptical when I see a token based on the binance smart chain. This is because, from my experience, I have come to realize scam tokens are prevalent on the binance smart chain. With that in mind, let’s get into the Rainbow token analysis.

Rainbow Token’s website

Rainbow token’s website is not the best-looking site in the world. However, I have no bad words to say about the site. I like the simplicity and straight-to-point nature. I think they did most of the talking in the whitepaper. The description begins with Rainbow’s website telling us (visitors) that $RAINBOW was put together by O.G programmers, investors, and salespeople that all have experience in the Binance Smart Chain Defi space.

Through the website, we get to know that, Rainbow token has 7 key features represented by the 7 colors in the rainbow. These features are Hyper-deflationary, Token buyback, Autonomous-yield, charity Auto growing liquidity, marketing outreach, lucky dip.

We will be covering Rainbow token’s white paper, which has a more detailed explanation, in the coming paragraph. Charity is at the core of what the rainbow token represents. As rainbow has already donated $43,750 to charity. Donations are done each week.


Heard of Wolverinu?


Rainbow token’s contract has been audited by SolidProof.io. Although I do not know much about SolidProof, it is nice to see that a third-party blockchain auditing firm based in Germany has professionally gone through Rainbow token’s contract code.  Through the audit let’s know that Rainbow token’s contract is still owned by an individual. The contract hasn’t been renounced, I find this odd because Rainbow prides itself ‘as a people’s token. In summary, the Rainbow token passed the audit.

White Paper

Rainbow token’s white paper is a 35-page downloadable pdf that is well made and structured. Whoever produced the Rainbow token’s white paper did an awesome job. The white begins with the mission and vision statement which was clearly stated.

MISSION

To create low cost, easy to use, and widely available platforms, services, and dApp that people can use.

VISION

To be a thriving ecosystem, which helps bring attention to the crypto space and eventually becomes a household name.

The statement of problem follows immediately. Here’s an excerpt from the white paper

“…In most cases, it is still very complex to use, so even with a decent understanding of how things work it requires users to jump through a lot of unnecessary, and sometimes daunting, hoops….”

You will agree with me this is a real problem in the world today. This problem is what Rainbow token is ‘positioning’ to solve.

Tokenomics

According to Rainbow token’s white paper,

The Rainbow token smart contract applies a 14% tax on sells to the PancakeSwap liquidity pool. This aims to decrease volatility using a mechanism called ‘anti-whale tax’. The buy slippage is 8%+, and the sell slippage is 16%+. The whale slippage is 26%+. On every sells, the tax is not split evenly across all 7 protocols. Instead, 1% of the transaction is burned, 1% is reflected and 1% is pulled into the lottery sidepot. The rest of the taxed amount is then split evenly across the remaining protocols (buyback, charity, liquidity, and marketing.)


Have you heard of Tails?


I admire the way this was broken down. Some whitepapers leave you confused, with more questions than answers. I believe the quote is clear enough.

The seven features were simplified. I’m only going to explain quote the Lucky dip protocol and anti whale tax.

“Our violet protocol is our lucky dip function. This function awards extra tokens to a random buyer of $RAINBOW.
It works by taking 1% of every transaction and storing it in a side-pot inside of the smart contract” If you don’t understand,   think of it as a raffle draw.

The special anti whale tax means if a whale decides to dump their entire bag, a lot more of the tokens get driven into the project – greatly strengthening it.

The rainbow token did not come to play. The nature of their contract is unique and thoughtful, it reminds me of Kodi coin.

Rainbow Token Distribution

Rainbow token has a max supply of 1 quadrillion. For context,1,000,000,000,000,000. It was fairly launched. This means that no one was given an advantage, so much so that even the owners of the token bought their share of the token in the open market. The below is a representation of how Rainbow token was distributed upon launch.

Rainbow owns a telegram Bot, called Rainbot. This Bot is saddled with the responsibility of automatically rewarding shillers of Rainbow token with another crypto token called rain. This is interesting and innovative. Since all my time reviewing meme tokens, I have never seen a meme token like this.

The Rainbow token developers plan to launch Bifrost, a self-managing token sale service and decentralized application (DAPP). Think of it as Pancakeswap with additional features.

The white paper introduced $Prism.

The $PRISM token was designed to go alongside Rainbow Token and enhance it by providing a governance system to Rainbow Token ecosystem. Holders of rainbow token will be able to use their $RAINBOW and $PRISM to vote on proposals, which will help steer the direction of the Rainbow Ecosystem, where 1 $PRISM is equal to 1 vote.

Another component of the Rainbow Ecosystem is the bitfrost bridge which serves as a DAPP that helps crypto investors move their ethereum smart contract and binance smart contract, based tokens seamlessly.

Another feature of the Rainbow Ecosystem is the Kingdoms of Asgard. 

According to Rainbow token’s white paper. “Kingdoms of Asgard is a play-to-earn NFT-based settlement game; where users can build up their village, band together in clans, and lead raids on NPCs and other players”

Similarly, the Norsemen NFT collection, another feature of the rainbow ecosystem are unique NFT heroes that will be used inside Rainbow token’s native game, Kingdoms of Asgard.

Observation

You can see that Rainbow token is well packed.  The plans the dev team has for Rainbow token are just crazy.


Confused about these Crypto terminologies?


Market Cap and Liquidity Pool

Rainbow token is a $19, 087,191 market cap coin. This is a healthy market cap, as it suggests investors are investing in the Rainbow token project. It also suggests the project is still early in its early stages. It is a very attractive market cap for long-term investors. As the market cap is destined to significantly grow higher.

Currently, the Liquidity pool is slightly above $1.5 million. 90% of the liquidity pool is locked in a contract in PancakePool. While 9% is in a deployer address. It is not clear the time frame in which the contract is locked. This is where I have issues with Rainbow token. Modern legitimate meme coins put all their liquidity information out for everyone to see. Some even go as far as burning (making the liquidity pool permanently inaccessible to the devs) the liquidity pool. If you decide to invest in Rainbow Token, make sure the dev team shows you proof of the liquidity lock. Also, find out from them the time frame of the liquidity lock.

This token currently has 48,114 holders. What this means is that a lot of investors are buying and holding this token. This is super healthy.

Developers of the token

Page 17 on the white paper addressed the team. Rainbow token gave out 5 unverifiable names as the dev team behind Rainbow. That’s not being doxed in my opinion and I’m sure many of you will agree with me. Rainbow token not being properly doxed is a red flag. 

What investors are saying about Rain Token

On YouTube, many are optimistic about the potentials of Rainbow token. You can literally feel the excitement in their choice of words.

On Reddit, it is less emotions and more logic. Although, the Reddit comments are from some months back.

Conclusion

I’m a fan of Rainbow token and it’s amazing features. I however have concerns about the liquidity pool, the lack of a verifiable dex team. Also, Rainbow token masquerades as a community driven project, while it has an active owner. For the token to really fly and attract more investors, the dev team needs to address these concerns with a more transparent approach. If not, there will always be some doubts about the token that might raise FUD amongst holders.

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