What Is Frax Share Crypto (FXS)? Price & Where To Buy It

FXS is the governance token of Frax’s two-token system. The FRAX stablecoin is partially collateralized and utilizes a fractional algorithm to achieve its peg.

Current Frax Share (FXS) Price

Frax Share (FXS) Exchange Rate Calculator

Historical Frax Share Price Chart

The FXS token doesn’t utilize a fractional algorithmic stablecoin system. Instead, the supply of FXS is hard-capped at 100 million, and FXS tokens holders obtain voting rights among other exclusive features.

FXS is currently the 273rd largest cryptocurrency by market capitalization.

How Frax Share (FXS) Works

It’s essential to understand the FRAX protocol to fully understand the role that the Frax Share (FXS) token plays.

The FXS token is a governance token that doesn’t utilize the fractional algorithmic hybrid design that the FRAX stablecoin uses. Instead of being algorithmic money, the supply cap on FXS tokens remains constant – there is no inflationary measure in place currently.

Algorithmic stablecoins are among the most important and sought-after cryptocurrencies on the market. FRAX is the Frax protocol’s native stablecoin that is predominantly traded on DEXes (decentralized exchanges).

It’s also important to understand that the price of FXS is directly affected by the performance, adoption, and stability of the FRAX stablecoin. The protocol is made up of multiple coins but the FXS token is a representation of the success of the protocol and is seen as an investment and governance asset.

Retail investors typically prefer purchasing fixed supply digital assets and a digital asset like FXS is categorized as an investment (not investment advice) that would meet these criteria.

Essentially, a governance token provides token holders with an opportunity to play an integral role in the future of a blockchain protocol. Holders of FXS tokens are eligible for exclusive features such as voting rights – holders can also stake these tokens on various platforms for additional yields.

What Is Frax Share (FXS) Used For?

FXS tokens are typically used much like other cryptocurrencies, in the sense that they are traded for a profit. Many retail investors purchase cryptocurrencies based on their belief in the project and its potential success in the future.

FXS tokens and other Frax tokens can also be used in FRAX pools – specifically for additional incentives. Most individuals purchase FXS tokens because the supply of the tokens is low, which is indicative of scarcity (scarce tokens like Bitcoin tend to perform well) and because the project seems like it will be a profitable investment.

The FRAX stablecoin is the first and only stablecoin of its kind to be backed both by assets and by a form algorithmic money. Individuals seeking a more in-depth understanding of the FXS token and the Frax protocol’s functionality should thoroughly read through the whitepaper.

Where To Buy Frax Share (FXS)

FXS has the 273rd largest overall market cap and is continuously emerging as one of the most popular cryptocurrencies on the market.

FXS tokens can be purchased on several decentralized and centralized crypto exchanges. But, before purchasing FXS tokens, you’ll need to deposit fiat onto a specific exchange, and sequentially FXS tokens will be credited to your FXS digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store the FXS.

Five of the most popular crypto exchanges in use are:

1. Binance
2. Coinbase
3. KuCoin
4. Gate.io
5. Crypto.com

The list of decentralized exchanges where Frax Share (FXS) tokens can be acquired include:

1. Uniswap
2. Sushiswap
3. Curve
4. SpiritSwap

When purchasing FXS tokens on a decentralized exchange, users will need compatible wallets like MetaMask to hold FXS tokens. These wallets allow users to interact on decentralized exchanges and various DeFi (decentralized finance) protocols.

FAQs About Frax Share (FXS)

How long has Frax Share (FXS) existed?

FXS was initially launched in December 2020 and has since accrued a total value-locked (TVL) of $1.3 billion. The protocol has also tied up some huge partnerships with major investors including crypto.com.

What’s controversial about the Frax Share (FXS)?

Most crypto projects have a certain level of controversy surrounding them. The crypto space is filled with die-hard supporters and skeptics. Although FXS is the governance token, the Frax protocol has experienced its fair share of controversy.

Let’s take a look at the top two controversies surrounding Frax Share (FXS).

• Stephen Moore’s controversial writings – Stephen Moore, the co-founder of FRAX, has a past that is nothing short of controversial. Most notably, after he was selected as a top pick for the Trump administration, Moore withdrew from selection. The main reason for his withdrawal was due to past writings where he explicitly bashed women.

  There have been multiple occasions where Moore has mocked women and many members of the crypto community have highlighted this as the reason they don’t support Frax. Many individuals consider Moore to be gender insensitive and disrespectful to women.

• Novel Frax stablecoin – The Frax stablecoin is a novel stablecoin that is both asset-backed and algorithmically backed. It maintains its peg thanks to this unique mechanism, however, many individuals believe that the unique mechanism could be a downfall too.

  After an enormous amount of drama in the stablecoin sector recently, many people are even more skeptical about investing in new stablecoins. The UST stablecoin (ranked 3rd largest in 2022) recently plummeted, and dropped to $0.02 after it depegged. The FRAX token plays an integral part in the Frax ecosystem – low adoption of the tokens in the Frax ecosystem could lead to the demise of the Frax protocol.

How many Frax Share (FXS) tokens are there?

At the time of writing, Frax Share (FXS) has a circulating supply of 16,209,404.70 FXS.

The total supply of Frax Share (FXS) is 99,899,045.

Can Frax Share (FXS) be mined?

Frax Share (FXS) can’t be mined. The FXS token is the Frax protocol’s governance token and it is not possible to mine FXS. There is a limited supply of these tokens and they’ve already been allocated.

Some centralized and decentralized exchanges have various options for FXS token holders to earn additional revenues from their tokens. Some of these include staking FXS tokens or becoming FXS liquidity providers.

What is the market cap of Frax Share (FXS)?

The market cap of Frax Share (FXS) is the total amount of coins in circulation multiplied by the current market price of Frax Share (FXS).

Frax Share (FXS) Market Cap = 16,209,404.70 FXS. x $6.04 = $97 million (273rd largest market cap).

Note that the market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of Frax Share (FXS)

Frax Share (FXS) doesn’t have any direct competitors, and essentially is competing with all other cryptocurrencies. However, the Frax protocol has some competitors. The Frax protocol consists of multiple tokens but among the most notable is its FRAX stablecoin.

The FRAX stablecoin positions itself as a decentralized stablecoin that is ready for global use. However, the stablecoin sector is already saturated and there are a few monopolies that dominate the sector. It’s important to consider the FRAX stablecoin because it plays a key role in the value proposition of the Frax Protocol.

Frax’s competitors include:

• Tether USDT
• USD coin (USDC)
• Binance USD (BUSD)
• DAI
• Magic Internet Money (MIM)

What Are The Future Plans For Frax Share (FXS) and the Frax Protocol?

Frax is among the most innovative protocols in the crypto market. The protocol has a variety of tokens and the FRAX stablecoin has also recently undergone a change to its collateralization mechanism.

One of the most notable changes that the protocol has made, is the decision to add layer-1 protocols into the basket of investments. The collateral backing the FRAX stablecoin coin has been USDC stablecoins but recently the Frax team has decided to diversify its investments to include other digital assets.

Pros And Cons Of Frax Share (FXS)

Pros:

• Voting rights – The Frax protocol is quickly gaining momentum as one of the most innovative and appealing protocols in the blockchain space. The Frax Share (FXS) token is the governance token of the protocol and grants FXS token holders exclusive voting rights. These voting rights can be used when voting on protocol upgrades and proposals. Only FXS token holders have the right to vote on a proposal.
• The Protocol is diversifying – Frax consists of multiple tokens and the FRAX stablecoin plays an integral role in the success of the protocol. The FRAX stablecoin has historically utilized a fractional algorithmic monetary policy but has recently transitioned into diversifying the assets used to back the FRAX stablecoin.
• Low token supply – Frax Share (FXS) has a fixed token supply of 100 million. This number is relatively low compared to other blockchain projects and is only 5x more than Bitcoin. The supply of tokens is an important consideration because a lower token supply is indicative of scarcity – this typically results in positive price appreciation in the long-term.

Cons:

• Stephen Moore controversy – The co-founder of the protocol has been caught up in some negative publicity over the years. He has been labeled as gender insensitive and as a result, many individuals won’t invest in the project because of his previous actions. His writings about women have been seen as controversial and he has often mocked women – this has tainted the Frax project in the eyes of many people.
• Governance token success largely relies on FRAX – The FXS token is the governance token of the Frax Finance protocol but its success is largely reliant on the success and adoption of the FRAX stablecoin. Although the FRAX stablecoin isn’t a purely algorithmic monetary policy, it still faces some challenges and its success will largely determine whether FXS succeeds as a cryptocurrency.

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