Author: Frank, PANews
In a bull market, there seems to be countless ways to make money; some chase angles with MEME, some stay up all night trading contracts, and some work hard to farm airdrops. Beyond these methods, is there a way to profit without 'grinding', gambling, or having a heart-pounding experience? Some smart money aims at activities on Binance's Launchpool or Megadrop platforms to achieve compound interest goals. In this article, PANews will review the various activities on Binance over the past year and simulate the potential earnings if holding 10 BNB until the end of the year.
A total of 28 token launch airdrop opportunities available throughout the year.
Overall, the earnings from BNB can be divided into three main parts: first, the value increase brought by the rise of BNB tokens themselves; second, the reward earnings from participating in Launchpool activities; and third, the earnings from Megadrop, HodlerAirdrop, or other staking rewards.
We take January 1, 2024, as the starting date for the calculation period. On January 1, the closing price of BNB was $313.5. Buying 10 BNB required an investment of approximately $3,135. As of December 31, the price of BNB was about $702.3, an increase of approximately 124% compared to the beginning of the year. Based on this, the earnings from holding BNB are approximately $3,880.
Besides the growth earnings of BNB, Binance's Launchpool is another type of activity with the most user participation. Projects participating in the activity will reward a portion of tokens 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 historically. In 2024, Binance launched a total of 21 Launchpool activities.
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 per activity. If considering the highest price of the rewarded tokens, the average income per participation could reach $70. The total earnings from this part can reach a maximum of $1,481. The total return rate from participating in 21 activities is approximately 47.2%. Among them, Altlayer's activity has the highest yield, about 5.93%, with an income amount of $173.3. PIXEL follows with a yield of about 4.45%, with an income amount of approximately $156.
In addition to Launchpool, Binance also launched 2 Megadrop and 5 HodlerAirdrop activities this year. If one participated in all 7 activities simultaneously, the total income would be approximately $557, with a yield of about 17.7%.
In summary, the maximum combined yield from participating in Binance's Launchpool, Megadrop, and HodlerAirdrop is 65%. Combined with a 124% increase in token price, the total yield can reach 187%. Overall, participating in these activities can ultimately increase the investment principal of $3,135 to $9,087.
Compound interest operational returns are higher.
Of course, the above methods may not be the optimal solution for maximizing returns. Many believe that by introducing compound interest thinking, selling the rewards or tokens obtained from participation each time and buying BNB, it could lead to an increase in the number of BNB, thus providing more principal to participate in activities, and the overall returns should become greater.
First of all, this operational method may have certain flaws; we cannot calculate returns based on the highest price. In principle, 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 go live.
Using this method of compound interest calculation, after participating in 21 Launchpool activities, the 10 BNB held can ultimately be converted into 12.39 BNB. The increase of 2.39 BNB, calculated at $702.3, yields about $1,678. Adding the profit of approximately 0.62 BNB from the Megadrop and HodlerAirdrop activities, the final BNB amount could reach 13. If following the method of selling the activity tokens and buying BNB each time, the final amount would be approximately $9,136.
This return is higher than simply participating in the activities and selling at the highest point, and the biggest advantage is that this method is closer to practical operations, as no one can sell at the highest point every time. Compared to participating normally and directly selling the reward tokens without converting them to BNB, the final actual asset total is about $8,490. In contrast, the compound interest method still has greater advantages.
Value increased to 2.7 times in a year, with over 70% of tokens performing well.
Of course, regardless of the operation method, the total amount we can achieve with the principal of 10 BNB amounting to $3,315, after a year of practical operation, falls within a range, namely 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 income remains 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 return exceeds the performance of 73.6% of tokens in the sample. On the surface, such a yield may not seem significant in the face of the thousands of times returns common in the crypto world. However, for users with larger capital scales, seeking relatively stable returns, or those keen on farming but unable to participate in airdrops, this type of operational method appears to yield considerable results. Firstly, from the input-output ratio perspective, whether it's farming airdrops or trading MEME, the time and costs spent on-chain are always considerable, while participating in such activities is relatively easier. Secondly, the high volatility of MEME tokens and the uncertainty of farming airdrops can significantly reduce investment success rates, while markets with lower volatility tend to offer more stable returns. Therefore, these types of farming 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 is not investment advice.
