Glassnode analysts recently stated on social media that Bitcoin's realized volatility has dropped to its lowest point since March 2020. Cryptocurrencies that have lost their high volatility characteristics are fading from investors' view. Meanwhile, Binance, one of the world's largest cryptocurrency trading platforms, announced the launch of the Launchpool projects Sei ($SEI) and CyberConnect ($CYBER) at the same time, once again attracting attention.

The main reason why Binance Launchpool is highly anticipated this time is that Sei and CyberConnect are both star projects in the industry, with a large number of users participating and paying attention.

Sei is a Layer1 with scalability and speed as its features. It has received investments from well-known institutions such as Multicoin, Coinbase, and Jump Capital. Before announcing its participation in the Binance Launchpool project, more than 4 million users participated in the Sei test network, with a total of over 100 million transactions on the test network.  

CyberConnect is a Web3 social network that enables users to have their own digital identity, content, connections, and interactions. According to Dune Analytics data, CyberConnect's peak daily active users (DAU) once exceeded 200,000, and currently has a DAU of 62,000. After announcing its launch on Binance Launchpool, CyberConnect's weekly active accounts grew by 30%. 

However, there are still many criticisms in the market that Launchpool cannot bring enough returns to users. The logic of participating in Binance Launchpool is different from Binance Launchpad. Binance Launchpool is more inclined towards financial products for BNB and some stablecoin holders, with a longer cycle and relatively fixed returns, suitable for users who already hold BNB and have a low risk preference. At the same time, Binance also provides users with stablecoin pool mining, which allows them to obtain new coin returns without risk. Therefore, BlockBeats will analyze the real rate of return of Binance Launchpool and how to participate to obtain the best return. 

Financial product Binance Launchpool, with a cumulative return of approximately 15.37% in the past three years. 

In fact, the difference between Binance Launchpad and Binance Launchpool can be clearly seen from the number of projects launched on both platforms. As of now, Binance Launchpad has launched 32 projects, while Binance Launchpool has launched 37 projects. In 2023, Binance Launchpool launched 6 projects, which is twice the number of projects launched on Binance Launchpad.  

Since 2021, the average mining duration of Binance Launchpool projects has been 28.69 days, with 9 projects already listed on Binance before the start of mining. This also means that investors can better arbitrage based on the annualized yield. In order to better measure the performance of the project, BlockBeats calculated the actual yield (annualized yield/365*mining duration) of participating in the entire mining cycle based on the annualized yield officially announced by Binance (as of 8:00 on August 16 for CYBER and SEI).

Without considering the factors of overlapping mining cycles and fluctuations in BNB price, the BNB-denominated returns of Binance Launchpool will reach 8.06%, 0.91%, and 4.9% in the past three years (the actual data for 2023 SUI will be higher than 4.9% due to the official undisclosed annualized yield and the mining time lasting only 2 days). This also means that if BNB holders participate in Binance Launchpool every period starting from 2021 and exchange the tokens for BNB, the amount of BNB will increase by about 13.87%. Moreover, based on the current 23 projects, there is no direct correlation between the amount of BNB participating in Binance Launchpool and the yield.  

Meanwhile, one of Binance's financial products, the BNB Yield Pool, also has an annualized yield of approximately 0.5%. It automatically invests users' money into Launchpool, allowing them to enjoy a fixed income of 0.5% while also earning additional Launchpool income. Over three years, this adds up to a cumulative return of 13.87% + 1.5% = 15.37%.

Compared to the Binance Launchpad project, participating in Binance Launchpool does not require any capital, making it more suitable for users who already hold BNB and stablecoins for various reasons. Additionally, since Binance Launchpool often lasts longer, participation through methods such as collateralized borrowing requires consideration of the actual project situation, rather than blindly participating as with Binance Launchpad.

At the same time, for those with extremely low risk appetite, they can consider participating in stablecoin mining. The cumulative return for 3 years can also reach 13.16%. Usually, stablecoins can be deposited into current stablecoin financial management, with a yield of 2.59%. Occasionally, there will be an additional 1% to 2% interest for activities, which averages to about 4.1% interest, totaling 4.1% + 13.16% = 17.26%.

Buy on the first day of closing and sell on the second day, or choose Binance Launchpool as the best solution 

For many investors, they may not want to hold BNB but still want to profit from Binance Launchpool. In this case, they need to have a certain understanding of the project in order to borrow BNB through mortgage loans and other means. However, it is difficult to understand the project in a short period of time. Perhaps, we can infer the possible profit situation of the project through Binance's rule settings. 

The Binance Launchpool project has a time difference between the start of mining and the launch on Binance. By analyzing this time difference, it can be observed that projects that launch on Binance after a certain period of time after mining begins (referred to as "blind mining") have a higher probability of performing better. When investors are not long-term holders of BNB and some stablecoins, choosing to participate in projects with a longer time difference between the start of mining and launch on Binance may also be a more profitable option.

 

Of course, there are also investors in the secondary market who do not participate in Binance Launchpool. After excluding two delisted projects, Bitcoin Standard Hashrate Token and Anchor Protocol, as well as the short-term projects Sei and CyberConnect, BlockBeats has counted a total of 19 projects from 2021 to date. 

After excluding the short-term fluctuations caused by liquidity and market sentiment on the first day of listing, all projects can generate profits if the closing price of the first day is taken as the buying time point, with an average return rate of 76.95%. However, 9 out of 19 projects reached their historical highs on the second day, indicating that selling on the second day may be the best strategy for Binance Launchpool.

The reasons for the rise of Binance Launchpool projects are different, but the decline is greatly affected by BTC. Two of the 19 projects hit historic lows on May 12, 2022, when BTC briefly fell below the $27,000 mark, the first time since December 29, 2020. Eight projects hit historic lows on June 10, 2023, which was also a day of BTC decline and near a three-month low. Therefore, buying Binance Launchpool projects at a low price may also require judgment on the trend of BTC.

Binance Launchpool Empowers BNB 

After analyzing the projects launched on Binance Launchpool in 2021, it is easy to conclude that Binance Launchpool is a stable financial lottery for BNB holders. Binance is leveraging its industry position and influence to empower BNB holders.

In the ranking of cryptocurrency market capitalization, BNB currently has a total market value of about 36 billion US dollars, ranking fourth. February 2021 was the month with the largest single-month increase in BNB's historical market performance, with the price rising from $44.3 to $210.2, an increase of 374.2%, and reaching a high of $348.7. Now, there are many explanations for how it has grown into such a behemoth, but Binance Launchpool is undoubtedly an important factor.

Unlike many other projects, the empowerment of Binance Launchpool for BNB is direct and fierce. In the first two months of 2021, Binance launched five Binance Launchpool projects in just 10 days, with the highest annualized yield reaching 26.96%.

Of course, given the current size of BNB, it is difficult to achieve a huge monthly increase. However, with the recent launch of two star projects, Sei and CyberConnect, by Binance, this seems to be worth looking forward to again.

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