Author: Frank, PANews
In a bull market, there seem to be countless ways to make money. Some look for angles through MEME coins, some stay up all night trading contracts, and some work hard to grab airdrops. Besides these methods, is there a way to profit without exhausting oneself, gambling, or getting anxious? Some smart money is aiming at Binance's Launchpool or Megadrop activities to achieve compound profit goals. In this article, PANews will review various activities on Binance over the past year and simulate how much profit could be obtained by holding 10 BNB until the end of the year.
Throughout the year, you can participate in 28 token listing airdrops.
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 earnings from participating in Launchpool activities; and third, the staking rewards from Megadrop, HodlerAirdrop, or other staking activities.
We use 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 a principal of about $3,135. By December 31, the price of BNB was approximately $702.3, growing about 124% since the beginning of the year. Based on this, the earnings from holding BNB amount to about $3,880.
In addition to the growth profits of BNB, Binance's Launchpool is another type of activity that users participate in the most. 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 events.
According to statistics from PANews, if users participate in the Launchpool activities of these projects starting from the beginning of the year, they can average a return of about 1.6% of the token amount per participation. If we consider the highest price of the tokens received as rewards, the average earnings per participation can reach $70. The total earnings from this portion can be as high as $1,481. The overall return rate for participating in 21 times is approximately 47.2%. Among them, the activity with Altlayer yielded the highest return, about 5.93%, with earnings reaching $173.3. The yield from PIXEL followed, with a return rate of about 4.45% and earnings of about $156.
In addition to Launchpool, Binance launched 2 Megadrop events and 5 HodlerAirdrop events this year. If you participated in all 7 events, the total income is approximately $557, with a return rate of about 17.7%.
In summary, the highest combined returns from participating in Binance's Launchpool, Megadrop, and HodlerAirdrop are 65%. Combined with the price increase of BNB, which is 124%, the total return rate can reach 187%. Overall, participating in these activities can ultimately increase the invested principal of $3,135 to $9,087.
Compounding operational returns are higher.
Of course, the above method may not be the optimal way to maximize profits. Many believe that if we introduce the concept of compounding and sell the rewards or tokens gained from each participation to buy BNB, this would increase the amount of BNB, thereby providing more principal to participate in activities, leading to greater overall profits.
First of all, this operational method may have certain flaws, as we cannot calculate profits based on the highest price. In principle, using this method requires selling the tokens immediately after receiving them to avoid missing the next event. Therefore, the calculations are based on the closing price on the first day after these activity tokens are listed.
According to the calculation using this compounding method, after participating in 21 Launchpool events, the 10 BNB held could eventually increase to 12.39 BNB. The growth of BNB tokens is 2.39 BNB, which, based on $702.3, results in approximately $1,678 in profits. Adding the profits of around 0.62 BNB from Megadrop and HodlerAirdrop events, the final amount of BNB could reach 13. If we sell the tokens from each event and buy BNB, the final amount would be around $9,136.
This return is higher than simply participating in activities and selling at the peak price, and the greatest advantage is that this operational method is closer to practical application; after all, no one can sell at the peak every time. Compared to normal participation in activities, where rewards are directly sold without being converted to BNB, the final total actual assets amount to about $8,490. In contrast, the compounding method still has advantages.
In one year, appreciated to 2.7 times, over 70% of tokens performed well.
Of course, regardless of the operational method, the final total amount that can be achieved with an initial investment of 10 BNB, amounting to $3,315, after a year of practical operations falls within a range of $8,490 to $9,136. The overall wealth change is about 2.56 to 2.75 times. Of course, the largest source of profit still comes from 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 profit exceeds the performance of 73.6% of the tokens in the sample. On the surface, such yields may not seem significant in the face of the thousands of times returns often seen in the crypto world. However, for users with larger capital scales seeking relatively stable returns, or those keen on grabbing profits but unable to participate in active trading, this method of operation appears to yield considerable results. First, from the perspective of input-output ratio, whether grabbing airdrops or trading MEME, the time and costs spent on-chain are always considerable, while participating in such activities is relatively easy. Secondly, the high volatility of MEME coins and the uncertainty of grabbing airdrops can significantly reduce the chances of investment success, whereas markets with lower volatility tend to have relatively stable returns. Hence, these kinds of profit-grabbing activities seem to have a cumulative effect.
However, any investment strategy should undergo extensive data analysis and fundamental judgment before actual implementation. The above content is for reference only and is not investment advice.
(The above content is an excerpt and reprint authorized by partner PANews, original link)
Statement: The article only represents the author's personal views and opinions, not the views and positions of Block客. All content and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and trades; the author and Block客 will not bear any responsibility for direct or indirect losses incurred by investors' trading.
"Lazy Earning Secrets: How much can you earn in a year by holding 10 BNB and 'compounding profits' on Binance?" This article was first published on (Block客).
