$USUAL A question a brother sent me "Now there is a doubt because pre-market trading has not opened the rewards, so the higher the price of governance tokens, the higher the APY displayed on the official website, the higher the APY, the more deposits, until the end of pre-market trading, the unlocking of opening rewards, mining withdrawal selling and market optimism buying and repurchasing reach a dynamic balance, where is this balance point? Currently, it seems that this pre-market trading trick is feasible, but the key depends on the real supply and demand relationship after the official opening."
In fact, a few days ago, a friend also asked this question, today I will answer this question uniformly, we can analyze it from a macro perspective: After Binance officially starts trading, the total circulation, including the subsequent airdrop, is actually 495 million. Now, the circulation traded on Binance and other exchanges is 334 million, leaving 161 million that has not entered the market circulation. However, with the issuance of airdrops and the commencement of official trading on Binance, these tokens can be injected into the exchange for trading.
Currently, it is pre-market trading, and regions in Europe and America are prohibited from participating, so purchases cannot be made. At present, basically only the Asian region is trading this token, and there is a purchase limit of 40,000 for retail and institutional investors. In other words, the trading in the Asian region accounts for 334 million/495 million = 67% of the circulation, which is two-thirds. After the official trading starts, the additional 161 million tokens will flow into the market, but friends from Europe and America will also have their purchase limits lifted and can buy. From previous trading history, friends from Europe and America have a purchasing power that exceeds that of the Asian region, and the additional 161 million USUAL flowing into the market will not have much impact and will be completely digested. With more than half of the purchasing power buying one-third of the tokens, it will only further push up the token price. Moreover, the official trading will cancel the purchase limit, so institutions, whales, and large capital will be able to purchase without limit, which will further push up the token price.
In other words, after Binance officially starts trading, demand will exceed supply. The trading balance point will tilt towards the buyers, which is a positive sign, and the USUAL price will be further elevated.