Author: Frank, PANews
In a bull market, it seems there are countless ways to make money. Some look for angles by MEME trading, some stay up all night trading contracts, and others work hard to grab airdrops. Besides these methods, is there a way to profit without 'grinding', gambling, or heart-pounding? Some smart money has targeted Binance's Launchpool or Megadrop platform activities to achieve the goal of compound interest. In this article, PANews will review various activities on Binance over the past year and simulate how much profit can be obtained by holding 10 BNB until the end of the year.
Throughout the year, 28 token listing airdrops can be participated in.
Overall, the returns from BNB can be divided into three main parts: first, the value increase brought by the price rise of BNB tokens themselves. Second, the reward earnings from participating in Launchpool activities. Third, earnings from Megadrop, Hodler Airdrop, or other staking rewards.
We take January 1, 2024, as the starting date for the period calculation. On January 1, the closing price of BNB was $313.5. At that time, buying 10 BNB required approximately $3,135 in principal. By December 31, the price of BNB was about $702.3, an increase of approximately 124% from the beginning of the year. Based on this, the earnings from holding BNB would be about $3,880.
In addition to the growth returns of BNB, Binance's Launchpool is another type of activity with the most user participation. The projects participating in the activities will distribute a portion of the token rewards to users who stake BNB or other stablecoins. As of December 31, the total locked amount on Binance Launchpool is approximately $1.53 billion, with over 6.1 million unique participants. In 2024, Binance launched a total of 21 Launchpool activities.
According to PANews statistics, users who participated in these Launchpool activities from the beginning of the year can earn an average of about 1.6% in token amount per activity. If looking at the highest price of the rewarded tokens, the average income per participation can reach $70. The total earnings from this part can reach up to $1,481. The overall yield rate for participating in 21 times is about 47.2%. Among them, the activity of Altlayer has the highest yield at about 5.93%, with earnings reaching $173.3. PIXEL follows with a yield rate of about 4.45%, earning about $156.
In addition to Launchpool, Binance has launched 2 Megadrop and 5 Hodler Airdrop events this year. If one participates in all 7 activities simultaneously, the total income amounts to approximately $557, with a yield of about 17.7%.
In summary, the highest comprehensive return from participating in Binance's Launchpool, Megadrop, and Hodler Airdrop is 65%. Combining the increase in coin price of 124%, the total yield rate can reach 187%. Overall, participating in these activities can ultimately increase the principal investment of $3,135 to $9,087.
Compound interest practical returns are higher.
Of course, the above methods may not be the optimal solution for maximizing profits. Many believe that by introducing compound interest thinking, selling the rewards or tokens obtained through participation and buying BNB, the number of BNB can increase, leading to more principal to participate in activities, which should result in greater overall returns.
Firstly, this method of operation may have certain flaws, and we cannot calculate the returns using the highest price. In principle, using this method requires selling the tokens immediately after receiving them to avoid missing the next activity. Therefore, the calculation is made based on the closing price on the first day after these tokens are listed.
Based on this method of compound interest 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 earnings of about $1,678. Adding approximately 0.62 BNB profit from Megadrop and Hodler Airdrop activities, the final amount of BNB can reach 13. If following this method of selling the activity tokens and buying BNB each time, the final amount would be about $9,136.
This return result is higher than simply participating in activities and selling at the highest point. The biggest advantage is that this method of operation is closer to practical operation, after all, no one can sell at the highest point every time. Compared to normal participation in activities, where the reward tokens are sold directly without being swapped for BNB, the final total asset amount would be approximately $8,490. In contrast, the compound interest method is still more advantageous.
Appreciating 2.7 times in a year, over 70% of tokens performed well.
Of course, regardless of the operation method, the total amount that we can ultimately achieve after using the principal of 10 BNB, which is $3,315, after a year of practical operation falls within a range, specifically between $8,490 and $9,136. The overall wealth change is approximately between 2.56 times and 2.75 times. Of course, the largest source of returns remains the appreciation of BNB, followed by the Launchpool activities.
Compared to the maximum price fluctuations of the 182 spot and contract trading pairs listed on Binance this year, this return exceeds the performance of 73.6% of the tokens in the sample. On the surface, such a yield may not seem significant compared to the thousands of times returns in the crypto world. However, for users with larger capital scales seeking relatively stable returns, or those keen on grabbing airdrops but unable to participate, this method of operation seems to yield considerable results. First, from the input-output ratio, whether grabbing airdrops or trading MEME, the time and costs spent on-chain are always substantial, while participating in such activities is relatively easier. Secondly, the high volatility of MEME coins and the uncertainty of grabbing airdrops significantly reduce investment winning rates, while markets with smaller fluctuations tend to have more stable returns. Therefore, these types of airdrop 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 does not constitute investment advice.
