A must-see before flying! What exactly does the new coin ENA do? Does it have great future potential? Let’s take a look with Shu Qin.
First of all, this project is very eye-catching. It is a stable currency project USDE. The current annualized return of holding USDE is 35%. He uses CDP to arbitrage, which is a kind of basis trade.
His investor background is amazing. Not only are giants such as Binance, Ouyi and Kraken participating in the investment, but his founder Guy Young himself is from Wall Street and has worked at Morgan Stanley, Goldman Sachs and Citadel for more than 20 years.
So how does this project achieve an annualized return of 35%?
To put it simply, it is to make an investment portfolio, use short contracts to use Ethereum to collect the long funding rate, and then use spot Ethereum to make liquidity pledges to earn coins, so its development space in the bull market is very large.
So how much can we get?
The circulation of this coin is 15 billion, so its market value is 1.5 billion for one cent, and 3 billion for two cents.
At present, the issuance volume of Dai of Maker, a similar stablecoin project, is 5 billion, while the issuance volume of USDE of ENA is 1.5 billion. The total market value of Maker is 4 billion US dollars, and the conservative market value of ENA is 1.5 billion US dollars, which is 0.1u.
But its actual price must be much higher than 0.1, because you can see its growth trend, it is rising rapidly, and what we invest in is definitely not its present, but its future, so the real market price period is to price it in the future.
According to this trend, it should not be a big problem for him to price it to a market value of 4 billion similar to Maker, so you can buy it for 0.2 or even 0.3u, depending on whether the market will give you a chance when the currency is issued. However, its current OTC price is 0.6u, which is a market value of 9 billion. This price is a bit high. If we really buy it here, I think we may not have much profit margin in the short term, and the risks outweigh the opportunities.
If the opening price is too high, don't worry. We may wait for a correction before buying. For example, Etherfi opens high and then falls back. Then we enter the market, and then it explodes, right?
There is still a lot to be hyped about the long-term development of this project. For example, after Binance exited BUSD, it has been recruiting other stablecoins to enrich currency options, such as TUSD, USDC and FDUSD. So is there any chance that USDE will be adopted by Binance? Although the probability is small, if it happens, then he will be awesome. I think it's possible to go to 1u.
In addition, whether this project will issue a U.S. Treasury RWA to hype up its valuation like Maker or TruFi in the future, it will also increase by more than 30%. These are all good imagination spaces, so from the perspective of the project party, it has many ways to pull up the market.
However, after the bear market, the funding rate of the Ethereum contract becomes negative and the arbitrage ability is greatly reduced. Then its income will drop a lot. But which currency will not fall in the bear market? right.
Generally speaking, the growth potential of this coin is good. Whether it can be profitable depends on whether it can buy a lower opening price. Seizing the opening is a matter of metaphysics, don’t be anxious, everything is fate!
However, no matter how the mining project is, holding BNB will definitely make money forever, and mining will never lose money.
Maybe buying more BNB and mining more is the right way?
