Original link: https://twitter.com/sukie234/status/1692134941679907006?s=20
The recent market cannot really be called a bear market, but an ice market. The volatility of ETH and BTC has hit new lows, and the old Defi Curve has also suffered a heavy blow. I have also been looking for a place where I can earn stable interest.
Recently, Binance has launched several launchpad and launchpool projects. In the context of the bear market, there seem to be a lot of negative voices. But what is the actual rate of return of Binance's new listings?
At the beginning of the month, Binance Launchpool started staking SEI/CyberConect coins for new listings.
I pledged my funds in half into the SEI/CyberConect pool. After a week, I observed that due to the sharp rise in the SEI coin price, SEI's annualized rate of return (APR) was much higher than CyberConect.
Cyber 23.71%
Be 24.08%
Taking the futures price on Bitmex as a reference, the annualized rate of return (APR) of one SEI is roughly estimated.
https://www.bitmex.com/app/trade/SEIUSDTQ23
In a horizontal comparison of coin-earning and DeFi projects of the same period, a relatively safe APR is usually between 5% and 15%; I estimate the price to be around 0.2-0.9, corresponding to an APR of approximately 24% to 110%.
After SEI was listed on Binance, the price once reached 0.23. Even though this was lower than my initial expectation, Binance Launchpad APR could still reach 24.8%.
Let’s take a look at the yields of previous projects on Binance Launchpad:
This is a picture from @NintendoDoomed)
Compared with ETH Staking, the current annualized return of long-term holding of BNB is about 9.5%, which is 1.5 times that of ETH. In the past bull market, BNB's return was about twice that of ETH, and it is expected to be more resilient in the future bull market. (17/n). In 2020, BNB's annual return rate exceeded that of Bitcoin and Ethereum, reaching 300%. For relevant analysis, you can see @NintendoDoomed, and I won't go into details here.
In terms of profitability, Binance Launchpad and launchpool are rare and stable investment channels with a relatively high winning rate in a bear market.
Then I am actually very confused, why can Binance's new listings achieve such a relatively good return performance in a bear market?
I think the main reason is the brand effect and traffic effect of Binance:
Binance's current market trading volume exceeds 50% of the total trading volume of centralized exchanges, which means that Binance is a company with a very high cash flow. It does not need to rely on insider information, customer losses, etc. to make profits. There is news of layoffs this year, so the cash flow on hand should still be very healthy. At present, Binance Exchange only needs to operate steadily, so compared with other exchanges, its coin listing strategy is often very cautious. The focus is on selecting reliable teams that can operate in the long term, rather than projects with aggressive coin prices. In order to achieve stability, it is unable to meet the sometimes overly aggressive demands of the market, so this is also the reason why the recent new coins have received some controversy.
As an attention economy, the traffic effect has an important impact on the performance of exchange platforms. By analyzing the media data of the Binance project, Binance's exposure and attention success are obvious. Therefore, even in a bear market, creating hot spots is one of the important strategies of the Binance Launchpad project.
Let’s review Binance’s network effects from a data perspective:
HOOK
●After listing, the price of the currency increased by 14 times
●Continuously ranked in the top two in DAU and MAU on the BNB chain
Wild Cash has been downloaded nearly 10 million times and has expanded to multiple countries including Vietnam, Turkey, Pakistan and Bangladesh
ID
●418K .BNB domains registered by 225K users, second only to ENS.
●The price of the coin on the exchange increased by 18 times
EDU
● Existing web2 business (TinyTap) has 10 years of experience:
120,000 paid subscribers
●15K active creators
●The price of the online currency increased by 22 times
Not to mention last year’s star project StepN GMT.
Although there hasn’t been a star project like GMT with super strong traffic in the market for a long time, it is generally believed that in a dull market, Binance’s new listings can indeed bring heat and traffic to the market every time.
The funniest example I have ever heard is that a project team wrote in the Deck that the last column of the roadmap was "listing on Binance".
So the reason for everything is still due to Binance’s own top traffic and wealth effect. Finally, Binance has taken a series of measures to attract new users. Driven by the narrative of mass adoption, it believes that any project that can bring in new users is a good project. New projects can provide user-friendly interfaces, low-threshold trading experiences, and traditional mature business models. This listing strategy is actually in line with Binance’s interests.
Back to SEI, here is a small risk warning:
FDUSD is a point where risk may arise;
Due to the current depth problem of FDUSD, it is inconvenient for large funds to enter and exit, and the impact cost is relatively high. Limit transactions are required to buy slowly in batches, and the price fluctuations of the pegged price with the US dollar also need to be observed (currently it is 0.9999, and at the beginning of the new issuance, there was a 1% premium due to liquidity).
You can see the information about FDUSD here. You can see that it is also a safe and compliant stablecoin. As for whether to buy it or not, I can only say DYOR. I will buy it first:
https://twitter.com/OdailyChina/status/1684099663434244098
