In a bull market, there seem to be countless ways to make money; some chase meme coins for angles, some stay up all night trading contracts, while others toil hard claiming airdrops. Beyond these methods, is there any way to profit without hard work, gambling, or risking a heart attack? Some smart money has targeted Binance's Launchpool or Megadrop platform activities to achieve compound interest 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 by the end of the year.
Participate in 28 token launch airdrops throughout the year.
Overall, the earnings from $BNB can be divided into three main parts:
Firstly, the value increase brought about by $BNB's token appreciation;
Secondly, the reward earnings from participating in Launchpool activities;
Thirdly, the returns from Megadrop, HodlerAirdrop, or other staking earnings.
We take January 1, 2024, as the starting date for our calculations. On January 1, the closing price of $BNB was $313.5, requiring an initial investment of approximately $3,135 to buy 10 $BNB. By December 31, the price of $BNB was about $702.3, an increase of approximately 124% since the beginning of the year. Based on this calculation, the returns from holding $BNB are about $3,880.
In addition to the growth returns of $BNB, Binance's Launchpool is another activity type with the most user participation. The projects participating in the event reward users who stake $BNB or other stablecoins with a portion of the tokens. As of December 31, the total locked amount on Binance Launchpool is approximately $1.53 billion, with over 6.1 million unique participants historically. In 2024, Binance launched a total of 21 Launchpool activities.
Image source: PANews
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 participation. If we look at the highest price of the rewarded tokens, the average income per participation is about $70. The total potential earnings from this part can reach up to $1,481. The overall return rate from participating 21 times is approximately 47.2%. Among them, the activity with the highest earnings is Altlayer, with about 5.93% returns, amounting to $173.3. PIXEL follows with a return rate of about 4.45%, with earnings of about $156.
Besides 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 returns for participating in Binance's Launchpool, Megadrop, and HodlerAirdrop are 65%. Combined with the price increase of the token, it can reach 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.
Compound interest operations yield higher returns.
Of course, the above methods may not be the optimal plan for maximizing returns. Many believe that if we introduce the concept of compound interest and sell the rewards or tokens obtained through participation to buy more $BNB, we could increase the quantity of $BNB, resulting in more principal to participate in activities, ultimately leading 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 based on the closing price on the first day after these activity tokens are listed.
By calculating using this compound interest method, after participating in 21 Launchpool activities, the 10 $BNB held can ultimately be increased to 12.39 $BNB. $BNB token has grown by 2.39, and based on $702.3, this part of the earnings is about $1,678. Adding the profits from Megadrop and HodlerAirdrop activities of about 0.62 $BNB, the final amount of $BNB can reach 13 coins. If we operate in such a way of selling the activity tokens each time and buying $BNB, the final amount would be about $9,136.
Image source: PANews
This return result is higher than simply participating in activities and selling at the highest point, and the biggest advantage is that this operating method 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 converting to $BNB, the final actual asset total is about $8,490. In contrast, the compound interest method still has an advantage.
Increased in value by 2.7 times over the year, with over 70% of tokens performing well.
Of course, regardless of the method used, ultimately, we use the principal of 10 $BNB at $3,135, which, after a year of practical operations, can reach a total amount in a range of $8,490 to $9,136. The overall wealth change is approximately between 2.56 times to 2.75 times. Of course, the largest source of returns still comes from the appreciation of $BNB, followed by the Launchpool activities.
Compared to the maximum rise and fall of the 182 spot and contract trading pairs listed on Binance this year, these earnings surpassed the performance of 73.6% of the tokens in the sample. On the surface, such a return rate may not seem significant in the face of thousands or tens of thousands of times in the crypto world. However, for users with larger capital scales, seeking relatively stable returns, or those keen on 'yield farming' but unable to participate in 'harvesting,' such operational methods seem to yield considerable results.
Firstly, from the perspective of input-output ratio, whether it’s claiming airdrops or trading meme coins, the time and costs spent on-chain are always considerable, while participating in such activities is relatively much easier. Secondly, the high volatility of meme coins and the uncertainty of claiming airdrops significantly reduce investment winning rates, whereas markets with less volatility tend to have relatively stable returns. Therefore, these types of activities seem to have a sandpile 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.
This article is reprinted with permission from: (PANews)
Original author: Frank, PANews
The article 'Lazy Guide to Earning in the Crypto World! A Practical Test of How Much You Can Earn by Buying 10 BNB at the Beginning of the Year on Binance' was first published in 'Crypto City'
