Binance continues to launch new projects in its launchpool, giving all users of the platform the opportunity to participate in this event. In a few days the new $IO token arrives, whose technology and utility behind the token, as well as the recent trend in tokens in the DePIN category, could make a difference in the future. @Binance gives us a window to obtain these tokens for a limited time in preparation for the launch. What is the IO token and what strategy can we use with Binance? Let's explore.
IO.net is a decentralized network of GPUs designed to provide unlimited computing power to machine learning (ML) applications, offering an efficient service at a lower cost compared to current traditional services (AWS or Azure).
This project has raised $30 million dollars as of March 5, 2024, with important investors at the helm such as #Solana Labs, #Aptos Labs, among others.
This project will launch its $IO utility token, which will facilitate economic incentives on the network focused on three groups, the users who rent this service, the bidding users who provide their infrastructure equipment, and for the community (staking and governance).
An important point is that as a DePIN project (decentralized physical infrastructure networks) it will encourage the use of its tokens to be able to buy its services or pay the bidders, giving better prices in the $IO token compared to USDC. This is an excellent initiative for the use of the $IO token.
Within the category of DePIN projects we can find other projects such as Internet Computer, Render, Filecoin, among others (ICP, RNDR, FIL tokens), which have a mixed behavior regarding prices, according to coinmarketcap. Furthermore, if we sort it by market capitalization, the ICP token is in 23rd place, which could indicate that it is a category that is recently growing.
Regarding tokenomics, this token will have a total maximum supply of 800,000,000 $IO tokens, which will have an initial circulation of 95,000,000 tokens. Within this initial circulation, 20,000,000 $IO tokens will be allocated to the Binance launchpool.
This is where we can find an opportunity with the Binance launchpool (#IOLAUNCHPOOL ), which has already been launching several projects and this would be its 55th launch.
What is a launchpool and how to participate?
A launchpool is a platform for users to obtain new #tokens in exchange for depositing other tokens. In the case of the Binance launchpool it is for a limited time and you can only participate if you own the BNB and FUSD tokens.
To access it we can go to this link and see the available options. Once we have decided which option to use, we deposit our tokens and wait until the launchpool ends. At the end of the period, according to our amount of tokens deposited, we can obtain $IO tokens.
Once we make the decision to enter the Binance launchpool, we can see in real time how many tokens we are earning, since photographs are taken every hour to update our balance. If we decide to claim our reward at some point, all of this will reach our spot account.
For those who have their BNB tokens stashed away or some unmoved money (stablecoin), this would be a good strategy to get some returns in a short time. The more money you deposit, the greater the number of tokens received. One facility that Binance gives us is that you can withdraw your money whenever you want.
Another detail to mention is that the reward is higher in the BNB pool compared to FUSD (stable currency), given the token incentivized by Binance and its volatility.
Going into more detail with the BNB token, it has recently reached a new maximum price, which surprised many. Not even ETH has performed well so far, even with the news of the approval of the ETH spot ETF. Meanwhile, BNB has performed well this year, just from the beginning of the year until now, the token is up +117%.
It is currently priced at $681 and is ranked 4th by market capitalization, according to coinmarketcap. Position 4 is very close between the BNB AND SOL token.
Here we could also apply another strategy with BNB, since if we receive rewards from the new token, we could apply compound interest and maximize our profits, staying optimistic with the price of BNB and the next projects launched in the Binance launchpool (the number continues to increase of projects launched).
On the other hand, if we have other tokens in the Ethereum network or other layer 2 networks and we do not want to sell but we want to enter the launchpool for the reward of the new token because we see that it has a lot of demand (it can be observed by the number of depositors), We could opt for loans.
This play has a higher risk due to the volatility of the collateral and the interest charged, but we could generate good returns. We have to strike a balance and see if it benefits us or not. The known protocols where we can opt for loans are Aave and Radiant.
Another fact to mention is that Binance is constantly updating its products encouraging the use of BNB, so if there would not be a launchpool available, we could use it in other products within the platform such as staking.
Regarding the starting price of the $IO token, it would be expected to come out around $4.25 to $4.5, taking as references the pre-launch prices on some perpetual platforms.
I think that using the Binance launchpool is an excellent option to be able to obtain some returns in a short time, considering the volatility of the market. The technology behind the $IO token draws a lot of attention due to the way it works and the solutions to the problems it solves, considering the current centralized competitors (AWS and Azure) with high costs and less efficiency. If you are interested in these new releases, you can do your own research and make a decision (NFA).
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