Author: Frank, PANews
In a bull market, there seem to be countless ways to make money. Some people chase angles with MEME tokens, others stay up all night trading contracts, and some work hard to claim airdrops. Besides these methods, is there a way to profit without 'grinding', without gambling, and without the adrenaline rush? Some savvy investors are targeting Binance's Launchpool or Megadrop platform activities to achieve compounding goals. In this article, PANews will review various activities on Binance over the past year and simulate how much profit one can gain by holding 10 BNB until the end of the year.
A total of 28 token launch airdrops are available throughout the year.
Overall, the returns from BNB can be divided into three main components: first, the value increase from the appreciation of the BNB token itself; second, the reward income from participating in Launchpool activities; and third, the staking returns from Megadrop, Hodler Airdrop, or other activities.
Taking January 1, 2024, as the start date for the calculation period, on January 1, the closing price of BNB was $313.5. At that time, purchasing 10 BNB required a total principal of approximately $3,135. By December 31, the BNB price was about $702.3, an increase of approximately 124% from the beginning of the year. Based on this calculation, the return from holding BNB is about $3,880.
Apart from the growth returns of BNB, Binance's Launchpool is another type of activity with the highest user participation. Projects participating in the activity will allocate a portion of token rewards to users who stake BNB or other stablecoins. As of December 31, approximately $1.53 billion is locked in Binance Launchpool, with over 6.1 million unique participants historically. In 2024, Binance launched a total of 21 Launchpool activities.
According to PANews statistics, if users participate in these Launchpool activities from the beginning of the year, they can earn an average of about 1.6% in token amount for each activity. If considering the highest price of the rewarded tokens, the average income from each participation can be $70. The total potential earnings in this regard could reach up to $1,481. The overall return rate from participating in 21 activities is approximately 47.2%. Among them, Altlayer's activity has the highest yield at about 5.93%, with earnings amounting to $173.3. The second highest is PIXEL, with a yield of about 4.45% and earnings of about $156.
In addition to Launchpool, Binance also launched 2 Megadrop and 5 Hodler Airdrop activities this year. If one participated in all 7 of these activities, the overall income would be approximately $557, with a yield of about 17.7%.
In summary, the highest combined return from participating in Binance's Launchpool, Megadrop, and Hodler Airdrop is 65%. Combined with the price increase of BNB at 124%, the total return rate can reach 187%. Overall, participating in these activities can ultimately increase the invested principal of $3,135 to $9,087.
Compounding practical returns are higher.
Of course, the above methods may not be the optimal solutions for maximizing returns. Many believe that if we introduce a compounding mindset, converting every reward or token earned through participation into BNB, we can increase the amount of BNB, thus having more principal to participate in activities, which should lead to greater overall returns.
First of all, this operational method may have certain flaws; we cannot calculate returns based on the highest price anymore. In principle, using this method requires selling the tokens immediately after receiving them to avoid missing the next activity. Therefore, the calculations are made based on the closing price on the first day after these activity tokens go live.
Using this compounding method for calculation, after participating in 21 Launchpool activities, the 10 BNB held can ultimately increase to 12.39 BNB. The increase of 2.39 BNB, calculated at $702.3, results in a return of approximately $1,678. Adding the profit of about 0.62 BNB from Megadrop and Hodler Airdrop activities, the final BNB quantity can reach 13 BNB. If we follow this approach of selling the activity tokens each time and buying BNB, the final amount would be approximately $9,136.
This yield result is higher than simply participating in activities and selling at the highest point. The biggest advantage is that this operational method is more practical; after all, no one can sell at the highest point every time. Compared to normal participation, where the reward tokens are directly sold without converting into BNB, the final actual total asset amount is approximately $8,490. In contrast, the compounding method still has more advantages.
An increase to 2.7 times over a year, with over 70% of tokens performing well.
Of course, regardless of the operation method, ultimately, the total amount we can achieve from using a principal of 10 BNB, which is $3,315, after one year of practical operation can reach a range of $8,490 to $9,136. The overall wealth change is approximately between 2.56 times and 2.75 times. Of course, the largest source of profit remains the appreciation of BNB, followed by the Launchpool activities.
Compared to the maximum price fluctuations of 182 spot and futures trading pairs launched on Binance this year, these returns surpass 73.6% of the tokens in the sample. On the surface, such yield may not seem significant in the face of thousands of times returns in the crypto world. However, for users with larger capital scales who seek relatively stable returns or are keen on taking advantage of opportunities but cannot participate in those activities, this type of operational method seems to yield considerable results. First, from the perspective of input-output ratio, whether it's claiming airdrops or trading MEME tokens, the time and costs spent on-chain are always substantial, while participating in such activities is relatively easier. Secondly, the high volatility of MEME tokens and the uncertainty of claiming airdrops greatly reduce the investment success rate, while markets with lower volatility tend to have relatively stable returns. Therefore, these types of profit-taking activities seem to have a cumulative effect.
However, any investment strategy should undergo extensive data analysis and fundamental judgment before actual operation. The above content is for reference only and is not investment advice.
