As mentioned earlier:
Binance Launchpool's 68th project, the modular interoperability star Initia, is set to officially launch on April 24 at 19:00 (Hong Kong time). Many people are unfamiliar with this project; past reports have only touched on it briefly, mentioning that Binance has invested heavily, and the project team has a history from the original LUNA, which was involved in modular L1+L2, but there hasn't been a detailed introduction until now.
1. What is the INIT (Initia) project mainly about? What are its strengths?
In summary, Initia has created a modular blockchain operating system that allows developers to build chains as easily as stacking blocks, and enables users to transfer across chains as simply as sending a WeChat message. The goal is to eliminate blockchain "fragmentation" and "user-unfriendly operations."
Modular blockchains are not new anymore; from the earliest Cosmos, TIA, to FUEL launched at the end of last year, they all claimed to be pioneers of modular L1 and L2. So where does Initia excel?
1. Innovation in technical architecture
Modular multi-chain ecosystem: Initia adopts a unique architecture of "L1 coordination layer + L2 application chain," enabling seamless fund circulation between L2s through a shared liquidity center (Enshrined Liquidity), reducing reliance on cross-chain bridges, and enhancing security.
Cross-chain interoperability: Integrating LayerZero, IBC protocol, Celestia DA layer, and other technologies, supporting multiple virtual machines such as EVM, MoveVM, and WasmVM, compatible with Ethereum and Cosmos ecosystems.
User experience optimization: One-click cross-chain transfers, multi-chain asset transfers, unified identities (.init usernames), etc., reduce user operation thresholds.
In short, Initia is doing more of a micro-innovation; separating L1 and L2 into four major levels is essentially what all rollups are doing, but it uses modularization to make these cross-chain operations more compatible. If other chains' modularization only benefits developers, what Initia is doing is a further step. Specifically,
Shared liquidity pool: All funds from L2 are placed in L1's "super account," allowing cross-chain transfers without bridges, with negligible fees and enhanced security.
One-click multi-chain access: Integrating protocols such as Cosmos ecosystem (IBC), Ethereum (EVM), and LayerZero, allowing users to switch between different chains as easily as switching pages in an app, making complex cross-chain tasks as simple as completing a transaction on Taobao or JD.
2. The team has a strong background and is very supportive of developers.
The founding team includes former core members of Terraform Labs, with extensive blockchain development experience. The founder is an experienced individual from Terra (LUNA), who has gone through significant challenges and is clearly more cautious this time.
The technical team comprises core developers from Cosmos and Terra, with solid coding skills, not just a group making empty promises.
Although there might be a history, this time it is not considered a stablecoin (hhh)
At the same time, the team shows a clear empathy for developers, focusing on a simple and user-friendly approach, reminiscent of web2's WeChat mini-program development, emphasizing:
Build a chain in 3 minutes: Provides ready-to-use toolkits (wallets, oracles, browsers) that support three development languages: EVM, Move, and Wasm, allowing you to use whichever you prefer.
Funding the ecosystem: 25% of the INIT token is used to reward high-quality projects, allowing developers to earn without needing to rely on VCs; they can profit by simply building good products.
3. User experience aspect
I believe this part has the most imaginative potential, summarized as follows:
Even beginners can participate: Unified usernames (e.g., 'zhangsan.init' are universally applicable), support for any tokens to pay gas fees, and transactions reaching the recipient instantly.
No need to understand the technology: Users only need to engage in blockchain games, trading, and NFTs, while the underlying cross-chain and settlement processes are fully automated.
2. How is the market and financing performance? Is there money?
1. Who are the big investors?
October 2023 (Pre-Seed Round): YZi Labs investment
February 2024 (Seed Round): $7.5 million, led by Delphi Ventures and Hack VC, with participation from Nascent, Figment Capital, etc.
September 2024 (A Round + Community Public Sale): $14 million (A Round) + $2.5 million (Public Sale), led by Theory Ventures, YZi Labs, Delphi Digital, etc.
Cumulative financing exceeds $25 million, with investors including top institutions like Binance Labs, Delphi Ventures, Hack VC, etc., reaching a valuation of $350 million (A round), with industry leaders optimistic.
Angel investors include well-known industry figures such as KOL influencer Cobie and Celestia COO Nick White, bringing their own traffic and resources.
Please remember this valuation; it will be important later.
2. Rapid market ecosystem expansion
Currently supporting 12 L2 projects covering scenarios such as DeFi, NFT, and blockchain games, with over 194,000 participants attracted to the testnet.
The mainnet is planned to launch in Q2 2025, with future collaborations with modular protocols like EigenLayer to further expand capabilities, offering significant potential.
3. Token economics and profit opportunities
Token details and distribution:
Total token supply: 1,000,000,000 INIT
Initial circulating supply: 148,750,000 INIT (approximately 14.88% of total token supply)
Total for Launchpool: 30,000,000 INIT (3.0% of the maximum token supply)
According to the token economics announced on April 21, the total supply of Initia's native token INIT is fixed at 1 billion, of which 5% is allocated for airdrops.
Additionally, the foundation accounts for 7.75%, protocol developers account for 15%, and protocol sales account for 15.25%, with 6% of the total supply allocated for CEX liquidity guidance during the launch activities on Binance.
Main uses of the token:
The INIT token is used to pay transaction fees, stake for rewards, participate in governance voting, and distribute ecological incentives.
Through the "Liquid Staking" model, stakers can earn transaction fee shares and staking rewards through LP tokens.
This part is basically a common topic; 15% circulating supply is not too much, mainly concerned about the large gap between market capitalization and FDV. Some coins that went live recently are not worth discussing; their circulation is minimal, just waiting to sink.
4. Token price valuation
(Image Source: biteye)
Based on current futures performance and valuations of similar products, 0.7 is a valuation that aligns with the opening price. If it can advance according to A-round valuation, the final price expectation could reach around 1.2-2.
Currently, the performance of contracts that have gone live generally revolves around the 0.7-0.8 range. Observing the current charts, if liquidity miners consider selling at the opening, I would recommend paying attention to the support level around 0.68.
5. Risk warning
Uncertainty in mainnet performance: Technical implementation and ecological expansion require time for validation. If the mainnet's stability or performance does not meet expectations, it may affect token value.
Intense market competition: Facing challenges from mature ecosystems like Cosmos and Polkadot, continuous innovation is necessary.
Token unlocking pressure: The token lock-up period for the team and investors is 4 years, but subsequent increases in circulating supply may exert pressure on prices.
Summary:
Currently in a period of overall market recovery, compared to past new coin listings, the INIT project, with its technological innovations, capital backing, and ecological potential, is a noteworthy target in the infrastructure sector.
The best way to participate is through Binance LaunchPool for early mining (calculating that buying BNB is the best value). For long-term investors, it is essential to pay attention to ecological progress after the mainnet launch. Short-term investors should closely monitor whether the current support level holds after the opening, and participate again once effective technical structure is established.
