Binance Launchpool Wealth Code Ultimate Analysis
Analyzing the wealth code behind Binance Launchpool and the introduction of the new coin mining project in this issue.Author: Biteye Core Contributor Lucky
Editor: Biteye Core Contributor Crush
Community: @BiteyeCN
On December 11, Binance Launchpool announced the launch of the 40th new token mining project, Fusionist. The market's attention was instantly focused, and in just two days, the funds invested in Launchpool exceeded $4B. What sparked such enthusiasm among users? What is the expected price after the project goes live? How has the wealth effect of previous Launchpool projects been?
This article will analyze the wealth secrets behind Binance Launchpool and introduce this new token mining project.
Introduction to Launchpool
Binance Launchpool is a service provided by Binance Exchange aimed at helping projects with initial token distribution while allowing users to earn new project tokens as rewards by staking cryptocurrencies. This segment is also known as new token mining.
This service was launched by Binance in September 2020, at a time when Yield Farming in DeFi was very popular. Binance Launchpool combined the convenience of Binance CEX with DeFi's Yield Farming, providing users with the opportunity to earn new token rewards by staking crypto assets.
Currently, the staking cryptocurrencies used to mine new tokens in Launchpool are BNB and mainstream stablecoins, which can be considered perennial golden shovels.
Why do we say this? Let’s take a look at the historical performance returns of Launchpool below.
Historical Performance of Launchpool
The following two tables show:
1) Recent mining returns of Launchpool tokens
2) Performance of tokens launched by Binance in the past six months
From the statistics in the above two tables, we can see:
From the APY of Launchpool mining, the returns based on the price performance on the day of launch can maintain around 15%-20% in both bearish and recovering market conditions, with the highest SUI reaching over 400%. In contrast, most stablecoin mining in DeFi products during the same period was around 5%-7% (using RWA methods), which is more than half lower than Launchpool's annualized returns. Therefore, participating in Launchpool can be considered one of the safer and higher-yield mining methods, regardless of whether the market environment is bullish or bearish.
In the past six months, the standout performer among the tokens launched by Binance was ORDI. After ORDI was listed on Binance, it steadily rose from a closing price of $13 on the first day to $27 over a week, achieving a net increase of 107%. It then experienced a pullback, dropping to a low of $18, but subsequently surged to $61.5, peaking at $69.8, more than a fivefold increase. It can be said to be one of the big dark horses of this round, and its emergence is closely related to its listing on Binance, which provided ample liquidity and convenient trading options.
Besides ORDI, recently launched tokens on Launchpool, such as the metaverse project Memeland's token $MEME and Cosmos ecosystem's Neutron, after a brief decline, saw the former rebound by 3 times and the latter reach nearly 5 times, performing exceptionally well.
From the tokens launched by Binance, we can see that there are many high-quality projects, which is one of the important reasons for the subsequent rise in token prices (of course, there are also many reasons related to the market's recovery in the past six months). Most of these high-quality projects were issued through Launchpool, such as the leading LSD derivative Pendle, the leading social project CyberConnect, and the emerging metaverse project Memeland, all of which have very good fundamentals and a strong user base.
It can be said that the projects launched on Binance Launchpool have, to some extent, selected tokens with good fundamentals that also have potential for future development. If one conducts some research on these tokens before investing, the returns are unlikely to be poor.
- From the overall increase ratios mentioned above, we can see that in the past six months, the new tokens launched on Binance Launchpool have generally seen an increase of at least 200%.
Additionally, it is important to note that if one mines stablecoins, the tokens received are essentially "free" tokens, and if held long-term, one can steadily gain from this portion of appreciation.
Introduction to Participation in Launchpool
- Currently, the staking cryptocurrencies for Launchpool are BNB and FUSD. BNB is well-known as a perennial golden shovel; before each Launchpool/Launchpad, the demand for this token typically drives its price up. If you are concerned about price volatility risks, you can hold BNB and hedge, which will incur some interest rate wear.
FUSD is a stablecoin backed by high-quality reserves (cash and cash equivalents). Players who do not want to stake BNB usually choose to exchange for this token to stake, resulting in minimal loss.
(FUSD's parent company, First Digital Trust, is a qualified custodian and trust company based in Hong Kong. This stablecoin is regulated in Asia. First Digital Trust officially announced the launch of the USD-pegged stablecoin, FDUSD, on June 1 of this year.
On the same day, Binance's former CEO Zhao Changpeng tweeted about First Digital and FDUSD. More than a month later, Binance officially listed this stablecoin. Considering Binance's support for FDUSD and the on-chain data regarding its minting, this may be a centralized stablecoin alternative that Binance chose to support after BUSD, and Binance may provide more support in the future.)
Deposit the specified tokens into the Launchpool section to earn new token rewards. The tokens earned from Binance Launchpool are calculated hourly, and users can claim unclaimed rewards at any time. The number of tokens earned is proportional to the ratio of the user's staked tokens to the total contributed tokens in the pool.
During the staking period, players can redeem their assets at any time. Those concerned about exchange rate fluctuations can redeem in advance. For those who do not manually redeem, all staked tokens will automatically return to the spot wallet after the mining period ends.
Overall, Binance Launchpool provides users with a convenient way to earn new token rewards through simple staking operations, allowing for full participation in cryptocurrency mining while preserving asset value.
Introduction to the Latest New Token Mining Project $ACE
On December 11, Binance Launchpool announced the launch of the 40th new token mining project: Fusionist ($ACE).
The total mining volume is 10.29 million tokens, with a distribution ratio of 4:1 for BNB and FUSD. The mining period starts on December 13 and lasts for 5 days, ending on December 18.
Fusionist is a game universe built using the Unity engine, featuring various collectible NFTs, with a team from well-known Web2 gaming companies such as Tencent and IDFAME.
The game ecosystem mainly consists of three games:
1. Colonization (Construction Simulation)
2. Conquest (Turn-Based Strategy)
3. Alliance (SLG)
The game is set in the year 2800, where humanity's over-exploitation has led to the deterioration of Earth's environment, making it uninhabitable.
Space travel technology has matured, leading to wars over resource competition. Players will take on the role of a mech commander, managing their own planets, building industrial production lines, collecting rare resources, upgrading technology, and scanning blueprints to create mechs.
Ultimately, through PVP and PVE, players will establish interstellar fleets for interstellar warfare to conquer the galaxy.
Fusionist has been in development for about a year and is currently in the Beta testing phase.
In addition to the Fusionist game, the team has also developed Endurance—the on-chain mainnet for Fusionist, which serves as the infrastructure layer for social interactions and game operations.
Endurance officially launched on January 31, 2023, and within 7 days, the user count exceeded 610,000, with daily active wallet addresses reaching 114,800. It has currently accumulated over 1.86 million holding wallets and achieved over 100 million transactions.
$ACE is the governance token on Fusionist and Endurance, aimed at allowing users to participate in the network and earn rewards. The release situation of the $ACE token is as follows: (initial circulation of approximately 21,969,520)
Currently, the main AAA games in the blockchain gaming sector are Bigtime and Illuvium, with market capitalizations of $190 million and $380 million, respectively.
- If we benchmark against Bigtime's current circulating market cap, the price of $ACE would be approximately $8.8;
- If we benchmark against Illuvium's current circulating market cap, the price of $ACE would be approximately $17.5;
At the same time, the current off-market transaction price is between $10-12, indicating that market expectations are above $12, and it is anticipated to exceed Bigtime's market cap. Therefore, a price range of $12-20 may be a reasonable expectation for $ACE after its launch.
