In the bull market, there seem to be thousands of ways to make money. Some people use MEME to find angles, some open contracts all night, and some 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 the bull market, there seem to be thousands of ways to make money. Some people use MEME to find angles, some open contracts all night, and some 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.
A total of 28 token airdrops available throughout the year.
Overall, the returns from BNB can be divided into three main parts: first, the value increase from the price appreciation of BNB itself; second, the reward yields from participating in Launchpool activities; and third, the staking yields from Megadrop, Hodler Airdrop, or other activities.
We take January 1, 2024, as the starting date for the calculation period. On January 1, the closing price of BNB was $313.5. At that time, buying 10 BNB required a capital of 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, the return from holding BNB is about $3,880.
In addition to the growth returns of BNB, Binance's Launchpool is another type of activity that users participate in the most. The participating projects will reward some tokens to users who stake BNB or other stablecoins. As of December 31, about $1.53 billion was locked in Binance Launchpool, with over 6.1 million unique participants historically. In 2024, Binance launched 21 Launchpool activities.
According to PANews statistics, if users started participating in these projects' Launchpool activities from the beginning of the year, they could earn about 1.6% of the token amount on average for each participation. Based on the highest price of the rewards obtained, the average income per participation could reach $70. The total income from this portion could reach up to $1,481. The overall yield rate after participating in 21 times is about 47.2%. Among them, the Altlayer activity has the highest yield of about 5.93%, with an income amount of $173.3. The yield from PIXEL follows, with a yield rate of about 4.45%, amounting to approximately $156.
In addition to Launchpool, Binance also launched 2 Megadrop and 5 Hodler Airdrop activities this year. If participating in all 7 activities, the total income amount would be approximately $557, with a yield rate of about 17.7%.
In summary, the highest combined yield from participating in Binance's Launchpool, Megadrop, and Hodler Airdrop is 65%. Combined with the price increase of BNB, it reaches 124%, resulting in a total yield rate of 187%. Overall, participating in these activities can increase the initial investment of $3,135 to $9,087.
The practical yield from compound interest is higher.
Of course, the above methods may not be the optimal scheme for maximizing returns. Many people believe that by introducing compound interest thinking, if each time the rewards or tokens obtained through participation are sold and used to buy BNB, the amount of BNB can increase, leading to more capital to participate in activities, the overall return should become greater.
First of all, this operational method may have certain flaws; we cannot calculate returns based on the highest price. In principle, using this method requires selling the received tokens immediately after they are obtained to avoid missing the next activity. Therefore, the calculations are based on the closing price on the first day after these activity tokens were listed.
According to this compound interest calculation method, after participating in 21 Launchpool activities, the 10 BNB held can eventually be increased to 12.39 BNB. The BNB tokens grow by 2.39, and based on a price of $702.3, the profit from this portion is approximately $1,678. Adding the profit of about 0.62 BNB from the Megadrop and Hodler Airdrop activities, the final amount of BNB could reach 13. If following this method 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 peak, and the greatest benefit is that this operational method is closer to practical application, as no one can sell at the peak every time. Compared to normal participation in activities, where the reward tokens are directly sold without converting to BNB, the total actual asset amount is about $8,490, while the compound interest method still shows an advantage.
Value increased to 2.7 times in a year, with over 70% of tokens performing well.
Of course, regardless of the operational method, the final amount we can achieve using the initial capital of 10 BNB ($3,315) after one year of practical operation falls within a range, which is between $8,490 and $9,136. The overall change in wealth is about 2.56 times to 2.75 times. Of course, the largest source of returns remains the appreciation of BNB, followed by the Launchpool activities.
Comparing the maximum price fluctuations of the 182 spot and contract trading pairs listed on Binance this year, this yield surpasses the performance of 73.6% of the tokens in the sample. On the surface, such a return may seem insignificant in the face of thousands of times returns in the crypto world. However, for users with larger capital size, who seek relatively stable returns, or are keen on yield farming but cannot participate in it, the results of this operational method seem quite considerable. First, from the perspective of input-output ratio, whether it's yield farming or trading MEME tokens, the time and costs spent on-chain are always significant, while participating in such activities is relatively much easier. Second, the high volatility of MEME coins and the uncertainty of yield farming significantly reduce investment success rates, while markets with lower volatility tend to have relatively stable returns. Therefore, these yield farming activities seem to have a sand pile effect.
However, any investment strategy should go through extensive data analysis and fundamental judgment before actual operation. The above content is for reference only and is not investment advice.