Introduction to RainFX

RainFX is an anonymous cryptocurrency staking exchange based in Lithuania with business ties to Netherlands corporations.

The primary offering of RainFX is staking rewards and the ability to earn RND (Rain Token) rewards for trades and stakes. Bonus APR for such actions is upwards of 100% and instant!

So, let’s get this straight:

You trade on RainFX and stake on RainFX… And they give you competitive staking rewards with giant RND bonus rewards.

Is anyone else having Celsius PTSD?

Let us further investigate RainFX.

How RainFX Works

RainFX seeks to be a full-fledged crypto exchange offering “superior execution and transparency.” It does so with connections and products across defi, cefi, retail, and institutions via the company ‘CoinCorp”.

None of these features, relationships, or techniques are specified.

How to earn staking rewards on RainFX

To earn staking rewards on RainFX, users deposit funds into a new wallet that RainFX claims to be secured by SAFE protocol. Interestingly, you need to deposit to a different wallet than all smart contract deposits offering self-custody available in Defi today.

From there, you will stake your assets for a set period to earn a percentage of APR in native tokens plus a bonus RND APR.

As an example:

RainFX offers 6% in native yield for XRP staking plus a 76% bonus RND APR.

But where does any of this yield come from? RainFX claims to be a staking service; however, where is XRP staked?

How to earn RND rewards trading on RainFX

In addition to earning staking rewards, you can earn RainFX RND bonuses on every trade. This spot trading bonus can be as high as 105% in RND tokens.

All you need to do is deposit your funds into the new RainFX wallet, then trade, and you will receive RND tokens upon trades made. Not to mention, with 5,000 RND tokens, trading fees are waived.

How does this work? Doesn’t look good bruv.

RainFX RND Tokenomics and Tables

The Rain vesting schedule claims that 5% of tokens will be initially unlocked with a gradual linear vesting schedule over a year for the rest.

The total supply of RND will be 500,000,000, with an initial circulating supply of 20,000,000 RAIN (split 25% between the team, foundation, company reserves, and private sale.

RAIN/RND will partake in a burn and buyback model. Despite distributing 100% APRs, every transaction on the RainFX platform will buy back and burn RND, making it deflationary.

Based on the limited information, we assume that the RND/RAIN bonus APY is the team’s vision for gradual linear vesting.

RainFX Roadmap Shortened

Q3 2023:

  1. Limit Orders: RainFX will introduce limit orders, enabling users to specify purchase or sale prices. Orders auto-execute when market prices match user-set limits.
  2. Stop Loss & Take Profit Orders: Users can set specific price thresholds for automatic asset sales to mitigate losses or secure profits.
  3. Coin Expansion: RainFX plans to list at least 75 new coins, enhancing trader options.
  4. RND Token Listing: Rain DAO’s RND token will be listed on a Swap protocol, supposedly improving its liquidity.

Q4 2023:

  1. Margin Trading: RainFX will roll out margin trading, allowing users to borrow to leverage trades, amplifying profit, and loss potential.
  2. UAE Crypto License & On-Ramp Solutions: The platform will apply for a crypto license in UAE to cement its credibility. Note: obtaining the license may span into Q2 2024. The ultimate objective is collaborating with banks and PSPs, easing retail user onboarding.

Q4 2023 / Q1 2024:

  1. Hybrid Exchange Structure: RainFX will transition to a blend of centralized and decentralized models, aiming for enhanced security and transparency. Their financial data will also be recorded on-chain.
  2. Futures Trading: By Q4 2023, users can engage in Futures trading, allowing price speculation without owning underlying assets.
  3. Mobile App by Q1 2024: With increasing mobile usage, RainFX targets a mobile app release between Q1-Q2 2024, integrating their platform’s features.

Concluding Thoughts on RainFX

Perhaps RainFX is legitimate. The team may find a way to earn staking rewards on non-staking assets that outperform most other opportunities. The team may be so set on funding this protocol and getting the traction that the RND/RAIN rewards are a gigantic bonus to early adopters. I don’t know.

But we’re confident at CoinClaro that we will not connect with or utilize RainFX until it develops into a more precise, transparent, and logically functioning product.

At CoinClaro, we have yet to identify and call out a scam project. So, we will not be over-boldened to do so here. However, with all the ways self-custody exists in defi today, why is this anonymous project wanting users to deposit to a new RainFX-controlled address?

We will certainly be keeping an eye on how this evolves.