A Rocket Pool (RPL) altcoin holder sold his staking tokens for $270k for a year on the decentralized Ethereum staking pool platform.
The token owner, who did not reveal his identity, said that he purchased 5.5 thousand RPL tokens at $17 each in May 2022, when the cryptocurrency market fell.
He then staked these tokens in Rocket Pool, a protocol that allows users to stake ETH with lower financial and hardware requirements than staking alone.
The token holder said that he sold RPL tokens for $49 each on May 16, 2023, making a 3x profit ($150k) from his initial investment.
What is Rocket Pool (RPL) Altcoin?
Rocket Pool is a decentralized Ethereum staking protocol that allows anyone to participate in Ethereum staking regardless of their ETH balance.
Rocket Pool achieves this by dividing the staking process into three roles:
- Validators: Validators are responsible for running Ethereum nodes and validating blocks. To become a validator, you must deposit at least 16 ETH and deposit 16 RPL.
- Nominators: Nominators are responsible for choosing validators and handing over their ETH to them. To nominate a validator, you must deposit at least 1 ETH.
- Bonders: Bonders provide liquidity to the Rocket Pool protocol by locking RPL. Connectors earn a commission from the staking rewards generated by the protocol.
Rocket Pool uses a native token called RPL to secure the network and encourage participation. RPL is used to pay node registration, bond fees and slashing penalties. RPL holders also receive a share of protocol fees.
*Not investment advice.