Author: Frank, PANews
In the bull market, there seem to be thousands of ways to make money. Some people use MEME to find angles, some people open contracts all night, and some people work hard to get airdrops. In addition to these methods, is there any way to make a profit without "hard work", gambling, or heartbeats? Some smart money is targeting platform activities such as Binance's Launchpool or Megadrop to achieve the goal of compound interest. In this article, PANews will review the various activities on Binance in the past year and simulate how much income can be obtained by holding 10 BNBs by the end of the year.
You can participate in 28 token airdrops throughout the year
In general, the income of BNB can be divided into three parts: the first is the value increase brought by the increase in the value of BNB tokens itself, the second is the reward income from participating in Launchpool activities, and the third is Megadrop, HodlerAirdrop or other staking income.
We use January 1, 2024 as the starting date for the cycle calculation. On January 1, the closing price of BNB was $313.5. At that time, the total principal required to buy 10 BNB was about $3,135. As of December 31, the price of BNB was about 702.3, an increase of about 124% from the beginning of the year. Based on this calculation, the profit of holding BNB is about $3,880.
In addition to BNB's growth, Binance's Launchpool is another type of activity with the most user participation. Projects participating in the activity will reward some tokens to users who stake BNB or other stablecoins. As of December 31, the total locked amount on Binance Launchpool was approximately US$1.53 billion, and there were more than 6.1 million historical non-repeating participants. In 2024, Binance launched a total of 21 Launchpool activities.
According to PANews statistics, if users have participated in the Launchpool activities of these projects since the beginning of the year, they can earn about 1.6% of the token amount on average for each participation. If we look at the highest price of the rewarded tokens, the average income for each participation is $70. The total income can reach up to $1,481. The overall rate of return for 21 participations is about 47.2%. Among them, Altlayer's activity income is the highest, about 5.93%, and the income amount reaches $173.3. PIXEL's income is second, with a rate of return of about 4.45% and an income of about $156
In addition to Launchpool, Binance has also launched 2 Megadrop and 5 HodlerAirdrop activities this year. If you participate in these 7 activities at the same time, the total income is about US$557, and the rate of return is about 17.7%.
In summary, the highest combined return from participating in Binance's Launchpool, Megadrop, and HodlerAirdrop is 65%. Combined with the price increase of 124%, the total return can reach 187%. Overall, participating in these activities can eventually increase the principal of participating investment of US$3,135 to US$9,087.
Compound interest yields higher returns
Of course, the above method may not be the solution to maximize profits. I believe that many people think that if compound interest thinking is introduced, the rewards or tokens obtained through participation each time are sold and bought for BNB, the amount of BNB can be increased, and there will be more principal to participate in the activities, and the overall profit should be greater.
First of all, this method of operation may have certain flaws. We can no longer use the highest price to calculate the profit. In principle, using this method, you need to sell the tokens immediately after receiving them, so as not to miss the next event. Therefore, the calculation adopted is based on the closing price of these event tokens on the first day after they are launched.
According to this compound interest method, after participating in 21 Launchpool activities, the 10 BNBs in hand can eventually become 12.39. The BNB tokens increase by 2.39. Based on $702.3, the profit of this part is about $1,678. Adding the profit of about 0.62 BNB from Megadrop and HodlerAirdrop activities, the final number of BNB can reach 13. If you sell the event tokens every time and buy them for BNB, the final amount is about $9,136.
This profit result is higher than simply participating in the event and selling at the highest point. The biggest advantage is that this method of operation is closer to actual operation. After all, no one can sell at the highest point every time. Compared with normal participation in the event, just selling the reward tokens directly without exchanging them for BNB, the final actual total assets are about 8,490 US dollars. In comparison, the compound interest method is still more advantageous.
The value increased by 2.7 times in one year, exceeding the performance of 70% of tokens
Of course, no matter which operation method is used, the total amount of 10 BNBs with a principal of $3,315 can be converted into a range of $8,490 to $9,136 after one year of operation. The overall wealth change is about 2.56 to 2.75 times. Of course, the biggest source of income is still the appreciation of BNB, followed by Launchpool activities.
Compared with the maximum rise and fall of the 182 spot and contract trading pairs of tokens launched on Binance this year, this kind of return exceeds the performance of 73.6% of the tokens in the sample. On the surface, such a rate of return may not be a big deal in the face of the tens of thousands of times in the crypto world. But for users with large funds, who pursue relatively stable returns, or who are keen on wool-pulling but cannot participate in wool-pulling. The final performance of this kind of operation method seems to be considerable. First, from the perspective of input-output ratio, whether it is airdropping or MEME speculation, the time and cost spent on the chain are always considerable, and participating in such activities is relatively much easier. Second, the high volatility of MEME coins and the uncertainty of airdropping will greatly reduce the investment success rate, and the market with less volatility tends to have relatively stable returns. Therefore, this kind of wool-pulling activities seem to have the effect of gathering sand into a tower.
However, any investment strategy should be subject to a lot of data analysis and fundamental judgment before it is actually implemented. The above content is for reference only and is not an investment advice.
