Glassnode analysts recently stated on social platforms that Bitcoin’s realized volatility has fallen to historical lows since March 2020. Cryptocurrencies, which have lost their high volatility, are fading from investors sights. At the same time, Binance, one of the worlds largest cryptocurrency trading platforms, announced the launch of Launchpool projects Sei ($SEI) and CyberConnect ($CYBER) at the same time, attracting attention again.

An important reason why Binance Launchpool has attracted so much attention this time is that both Sei and CyberConnect are star projects in the industry, with many users participating and paying attention.

Sei is a Layer 1 characterized by scalability and speed, and has successively received investment from well-known institutions such as Multicoin, Coinbase, and Jump Capital. Before it was announced as a Binance Launchpool project, more than 4 million users participated in the Sei testnet, and the total number of transactions on the testnet exceeded 100 million.

CyberConnect is the Web3 social network that enables users to own their digital identities, content, connections and interactions. According to data from Dune Analytics, the peak of CyberConnect daily active users (DAU) once exceeded 200,000, and the current daily active users are 62,000. After announcing its listing on Binance Launchpool, CyberConnect saw a 30% increase in weekly active accounts.

However, there are still many criticisms in the market, who believe that Launchpool cannot bring enough benefits to users. The logic of participating in Binance Launchpool is different from Binance Launchpad. Binance Launchpool prefers financial products for BNB and some stablecoin holders. It has a longer cycle and relatively fixed returns. It is suitable for users who already hold BNB and those with low risk preferences. At the same time, Binance also provides users with the mining of stable currency pools to obtain new currency income without risk. To that end, BlockBeats will break down Binance Launchpool’s true return rate and how to participate to get the best returns.

Binance Launchpool, a wealth management product, has a cumulative income of about 15.37% in the past three years

In fact, the difference between the two can be clearly seen from the number of projects launched on Binance Launchpad and Binance Launchpool. As of now, Binance Launchpad has launched 32 projects, while Binance Launchpool has launched 37 projects. In 2023, 6 projects will be listed on Binance Launchpool, double the number of projects listed on Binance Launchpad.

Since 2021, the average mining duration of Binance Launchpool projects has been 28.69 days, and 9 of them have been listed on Binance before starting mining. This also means that investors can make better arbitrage based on annualized returns. . In order to better measure the performance of the project, based on the annualized rate of return officially announced by Binance (data from CYBER and SEI as of 8:00 on August 16), BlockBeats calculated the actual rate of return (annualized) for those who participated in the entire mining cycle. return rate/365*mining duration).

Without considering the factors of overlapping mining cycles and BNB price fluctuations, Binance Launchpools BNB standard return will reach 8.06%, 0.91% and 4.9% in the past three years (the SUI in 2023 is due to the official undisclosed annualized return rate and the mining time lasts only 2 days, so the actual figure will be higher than 4.9%). This also means that if, starting from 2021, BNB holders participate in Binance Launchpool every period and convert the obtained tokens into BNB, then the number of BNB will increase by about 13.87%. Moreover, as far as the current 23 projects show, there is no direct correlation between the number of BNB participating in Binance Launchpool and the rate of return.

At the same time, one of Binances financial products, the BNB income pool, also has an annualized income of about 0.5%. It will help users automatically invest money into Launchpool. While enjoying 0.5% of the fixed income, there will also be additional launchpool income. The total over three years is 13.87% + 1.5% = 15.37%.

Compared with the Binance Launchpad project, there is no need to spend money to participate in the Binance Launchpool, so it is more preferable to users who already hold BNB and some stablecoins for various reasons. At the same time, since Binance Launchpool tends to last longer, participating through methods such as mortgage lending often requires considering the actual situation of the project before participating, rather than treating it as a Binance Launchpad project and participating without thinking.

At the same time, those with extremely low risk appetite can consider participating in stable currency mining. The cumulative return in 3 years can also reach 13.16%. You can usually deposit stablecoins into current stablecoin financial management, and the income will be 2.59%. Occasionally, there will be an additional 1% to 2% interest for activities. On average, you can get about 4.1% interest. The total is 4.1% + 13.16% = 17.26 % .

Buy at the close of the first day and sell the next day may be the optimal solution for Binance Launchpool

For many investors, they may not be willing to hold BNB, but want to make profits through Binance Launchpool, so they need to have a certain understanding of the project in order to borrow BNB through mortgage lending and other methods. However, it is difficult to understand the project in a short period of time. Perhaps, we can reverse the possible profitability of the project through Binance’s setting of rules.

The Binance Launchpool project has a time lag between the start of mining and listing on Binance. Through the statistics of the time difference, it can be found that the projects that are listed on Binance after a period of time after the start of mining (which can be called blind mining) have a higher probability of performing better. When investors are not long-term holders of BNB and some stablecoins, choosing to participate in projects with a longer time lag between launch and mining may also be a more profitable option.

Of course, there are currently investors on the market who do not participate in Binance Launchpool, but participate in the secondary market. After excluding two projects that have been delisted, Bitcoin Standard Hashrate Token and Anchor Protocol, as well as Sei and CyberConnect that have been online for a short time, BlockBeats counted 19 projects from 2021 to the present.

After excluding the short-term spikes caused by liquidity and market sentiment on the first day of listing, all projects can generate profits using the closing price on the first day as the buying time point, with an average return rate of 76.95%, but among 19 projects Nine items had all-time highs the next day. This also means that selling the next day may be the best strategy for Binance Launchpool.

The reasons for the rise of the Binance Launchpool project are different, but the decline is greatly affected by BTC. Two of the 19 projects hit historical lows on May 12, 2022, when BTC briefly fell below the $27,000 mark on that day, the first time since December 29, 2020. Eight projects hit a historical low on June 10, 2023, which was also a day when BTC fell, at a low point in nearly three months. Therefore, the bottom-hunting Binance Launchpool project may also need to judge the trend of BTC.

Binance Launchpool empowers BNB

After analyzing Binance Launchpools projects since 2021, it is not difficult to draw a conclusion that Binance Launchpool is a stable financial lottery for BNB holders. Binance is leveraging its industry standing and influence to empower BNB holders.

In the market value ranking of encrypted assets, BNB currently has a total market value of about 36 billion US dollars, ranking fourth. February 2021 is the month with the largest single-month increase in the history of BNB so far. The unit price rose from US$44.3 to US$210.2, an increase of 374.2%, and the highest once touched US$348.7. Today, there are many explanations for how it has grown into such a behemoth. But presumably Binance Launchpool is also an inescapable link.

Unlike the empowerment of many projects, Binance Launchpools empowerment for BNB is direct and fierce. In the first two months of February 2021, Binance launched five Binance Launchpool projects within 10 days, and the project with the highest annualized rate of return reached 26.96%.

Of course, with the current volume of BNB, it is difficult to experience a huge increase in a single month. However, Binance has recently launched two star projects, Sei and CyberConnect, which seem to be worth looking forward to.