Article reproduced from: Frank
Author: Frank, PANews
In a bull market, there seem to be countless ways to make money: some chase angles with MEME, some stay up all night trading contracts, and some work hard to earn airdrops. Besides these methods, is there a way to profit without 'grinding', gambling, or experiencing heart palpitations? Some smart money has targeted Binance's Launchpool or Megadrop activities to achieve compounding goals. In this article, PANews will review various activities on Binance in the past year and simulate how much profit can be obtained by holding 10 BNB by the end of the year.
Throughout the year, there are 28 opportunities to participate in token launch airdrops.
Overall, the returns from BNB can be divided into three main parts: first, the value increase brought by the appreciation of the BNB token itself; second, the rewards earned from participating in Launchpool activities; third, the staking rewards from Megadrop, HodlerAirdrop, or other staking 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, requiring approximately $3,135 in total to purchase 10 BNB. By December 31, the price of BNB was about $702.3, representing an increase of approximately 124%. 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 activity type with the highest user participation. Projects participating in the activity will reward some tokens to users who stake BNB or other stablecoins. As of December 31, approximately $1.53 billion was 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 participated in these Launchpool activities from the beginning of the year, they could earn an average of about 1.6% in token returns per activity. If based on the highest price of the rewarded tokens, the average income per participation could reach $70. The total income for this part can reach a maximum of $1,481, with an overall return rate of approximately 47.2% from participating in 21 activities. Among them, the Altlayer activity has the highest return, about 5.93%, with a return amount of $173.3. The return from PIXEL follows, with a return rate of about 4.45%, amounting to approximately $156.
In addition to Launchpool, Binance also launched 2 Megadrop and 5 HodlerAirdrop activities this year. If one participated in all 7 activities, the total income would be approximately $557, with a return rate of 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 the token, it reaches 124%, resulting in a total return rate of up to 187%. Overall, participating in these activities can ultimately increase the initial investment of $3,135 to $9,087.
The practical returns from compounding are higher.
Of course, the above methods may not necessarily be the optimal scheme for maximizing returns. Many may believe that by introducing compounding thinking, selling the rewards or tokens obtained through participation and buying BNB, one can increase the number of BNB, thereby having more capital to participate in activities, resulting in overall greater returns.
First, this method of operation may have certain flaws; we cannot calculate returns based solely on the highest price. In principle, using this method requires selling the tokens immediately after receiving them to avoid missing the next activity. Thus, the calculations are based on the closing price of the tokens on the first day after the activity goes live.
Using this compounding method, after participating in 21 Launchpool activities, the 10 BNB held can ultimately be increased to 12.39 BNB. With an increase of 2.39 BNB, based on $702.3, the return from this portion is approximately $1,678. Adding the profits from Megadrop and HodlerAirdrop activities of approximately 0.62 BNB, the final amount of BNB can reach 13. If using the method of selling activity tokens each time and buying BNB, the final amount would be approximately $9,136.
This return result is higher than simply participating in activities and selling at the highest point. The greatest benefit is that this method of operation is closer to actual practice; after all, no one can sell at the highest point every time. Compared to participating normally in activities and directly selling the reward tokens without converting them into BNB, the final total asset amount is approximately $8,490. In contrast, the compounding method still has advantages.
In one year, the value increased to 2.7 times, outperforming over 70% of token performances.
Of course, regardless of the method used, ultimately, we started with a capital of 10 BNB, or $3,315, and after a year of practical operation, the total amount can reach a range from $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 returns still comes from the appreciation of BNB, followed by the Launchpool activities.
Comparing the maximum price fluctuations of 182 spot and contract trading pairs launched on the Binance exchange this year, this return exceeds the performance of 73.6% of the tokens in the sample. On the surface, such a return rate may not seem significant compared to the astronomical returns in the crypto world. However, for users with larger funds seeking relatively stable returns, or those keen on yield farming but unable to participate, such methods of operation seem to yield considerable results. 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 considerable, whereas participating in such activities is relatively easier. Secondly, the high volatility of MEME coins and the uncertainty of yield farming greatly reduce the chances of investment success, while markets with lower volatility often yield more stable returns. Therefore, these yield farming activities seem to have a sand pile effect.
However, any investment strategy should undergo extensive data analysis and fundamental judgment before practical operation. The above content is for reference only and does not constitute investment advice.
