Why did the price of Fractal Bitcoin, which was criticized by foreigners (mempool founder @mononautical) as BTC shitfork, soar? Take some time to review $FB @fractal_bitcoin, which has suddenly become popular in the Chinese cryptocurrency circle in the past two days.
What is Fractal Bitcoin?
Fractal Bitcoin is a Bitcoin expansion solution that aims to leverage the BTC core code to recursively create an infinite expansion layer on top of BTC to increase transaction processing capabilities and speed while maintaining full compatibility with the existing Bitcoin ecosystem.
Simply put, it is a forked (or adjusted cloned) version of Bitcoin Core v24.0.1. You can compare it with the current BTC to understand it as a small BTC chain with some parameters adjusted.
The differences include block times, ongoing difficulty adjustments, total token supply (210 million instead of 21 million), initial block reward amount, halving period, OP_CAT activation, and more.
Of course, if you just want to speculate on a coin, none of this matters, after all, it’s just a plate. Remind everyone: don’t have any long-term faith + fantasy in these forked coins. Those who once believed that 1BTC = 1BCH are now covered with grass three meters high.
Background Analysis
Fractal Bitcoin was developed by @unisat_wallet. UniSat has received multiple rounds of financing from investors such as Binance and OKX Ventures.
The first Bitcoin ecological wallet did not catch the trend in the era of inscriptions. I once complained to my friends that I had played a good hand badly. I didn’t expect that the team, unwilling to be lonely, finally came up with a trick and started to toss. In fact, it is understandable, after all, investors are still waiting for the harvest.
However, a chain can attract many more interest groups than a single project. The reason why it has become so popular now is largely because of the support of various parties.
For example:
For mining machine manufacturers and mining pools, such projects are naturally more the better, after all, they are giving away money and business. $FB can be mined dually when mining BTC, and now the big mining pools are getting it for free.
For the project team, they can re-skin the code. For example, many have announced that they will launch Pumpfun on FB, which is a great success, after all, the speed is much faster than BTC. For example, old faces such as Satspumpfun, http://satx.fun and BVM.
For example, some of the dex and exchanges that have gained popularity through this project may be revived, such as dotswap and coinex. Now it seems that Gate will soon open $FB trading.
Not to mention the hotly contested inscriptions (yes, inscriptions are back, CAT has driven up gas prices). I just want to ask, can't you come up with some creative names? If everyone uses a cat, can you blame the liquidity scores for not taking over?
I won’t mention things like computing power leasing, OTC trading, inscription proxying, and so on.
If the cryptocurrency industry also needs to create jobs, then a public chain is very similar to the domestic real estate industry, which can drive the development of countless downstream sub-industries.
Economic Model and Current Circulation
The total amount of $FB is 210 million, of which 80% is allocated to the community, 20% to the team and contributors, and 50% to POW mining.
10% community incentive.
5% pre-sale, 7 months lock-up period.
5% advisory share, can use up to 20% per year.
15% core contributors, 7 months lock-up period.
The mainnet has been online for three days, so how much $FB is currently in circulation?
15% of the ecosystem treasury, 60,000 $FB were transferred out, which were given to 6 Season 0 Grant projects, only one of which was moved. Most of the circulating chips came from airdrops, and the new chips came from mining POW.
So without counting the grant, the current circulating market value is approximately (25/block current block number 11004 + 1,000,000)29 = 36,977,900, or 37 million US dollars.
The circulation on Coinex is calculated directly at 2.07%. The data is slightly different. Mcap is 63 million and FDV is 3.075 billion.
Can Fractal Bitcoin continue to be popular?
Judging from the current mining data, FOMO is indeed going on right now, and the GAS on the chain is not low (mainly because of CAT). FB's current computing power is close to 300EH/s, which is close to half of the Bitcoin mainnet.
In addition, a large number of projects are now trying to issue coins on FB, many of which require the consumption of $FB, such as various inscription disks. If $FB is in short supply in the short term, it will lead to higher prices, higher miner income, and continued growth in computing power. Token holders are reluctant to sell in anticipation of new highs.
Does it look familiar? A typical spiral upward. This is the routine of large-cap, low-circulation, and good-at-organizing projects. As long as there is money to be made, who cares if it’s a shitfork?
Whether it can continue to heat up and how long it can heat up depends on several factors:
1. @unisat_wallet project team’s ability to continue to run the game, how to add fuel to the small fire that has already started, so that foreigners can also participate instead of just Chinese people having fun.
2. Whether the projects posted on FB are inscriptions, memes, or NFTs (such as Big Goose), can they bring obvious money-making effects and attract more retail investors to spend money?
3. Miners have already started to fomo, but can fomo be sustained to prevent them from turning the large amount of chips they have mined into stable selling pressure?
Possible subsequent money-making opportunities
1. Secondary trading opportunities after FB is listed on the exchange. If FB continues to be popular, it will most likely be listed on second-tier exchanges in the future. As for whether it can be listed on BN, it is a bit difficult, after all, the circulation is here. But I guess the supply and demand relationship of FB is still profitable for a certain period of time.
2. Inscriptions on the chain. For example, the already released FLUX and the Cat Protocol that uses OP_CAT. The advantage of poor liquidity is that it is easy to pull the price, but the disadvantage is that it is easy to get stuck and unable to sell.
3. On-chain Meme/NFT. You can pay attention to markets like pumpfun.
4. On-chain infrastructure coins, such as pizzaswap, will become interesting after the block height reaches 21,000.
summary:
Regardless of whether FB is a shitfork or not, at least from the perspective of organizing the group, it is initially successful at this stage, allowing the stagnant copycat market to find a hot spot and airdrop to make money in the short term. As the price of $FB's airdrops rises, the public's reputation has indeed changed from negative to unanimously positive (one account is worth nearly $400, so it must be positive).
In addition, it has also boosted the enthusiasm of a large number of downstream practitioners and retail investors, and brought the miners into the game, with many more variables in the points plate than the unoriginal ones on EVM and SOL.
However, it is important to remind you that the value of this airdrop experience voucher does not mean that everyone can continue to make money. The result of the inscription of all chains in the whole network was that many people were trapped. After embracing the bubble, it is more important to stop profit and exit before the bubble collapses. FB is a high-market-cap, low-circulation project. Don't take it lightly.
#fractalbitcoin #FB
