It’s the right time to stock up on coins at the beginning of the bull market, but which project should you choose?
At present, each track is already very crowded, and many projects are still in the early conceptual stage. Whether the pain points have been solved or whether the business model can be successful is still a question, but the valuation is already tens of billions of dollars, just waiting for retail investors to take over. For example, there are more than 100 projects in the RWA track, with a total market value of nearly 50 billion US dollars, while the new issuance volume of the CMBS (commercial mortgage-backed securities, a commercial real estate asset securitization tool) market in the United States in 2023 is only 100 billion US dollars. For another example, there are more than 250 projects in the AI and big data sector, with a total market value of more than 40 billion US dollars, which is more than half of OpenAI's valuation.
Compared with these high-sounding concepts that are incomprehensible, there is a type of project with a mature business model and sufficient data disclosure, and we use it every day, so we can make independent judgments based on our own experience. Most importantly, every round of bull market has its own star track, and this type of project is everlasting, and its growth rate is not inferior to other tracks. 100x coins are frequently produced, and there are also 1,000x coins. That is CEX platform coins.
CEX platform coins, a concentration camp of 100x coins
This round of bull market is called "a market where no one takes over". Although BTC hit a record high of $73,777 as early as mid-March, more than half of the projects are still far from the ATH of the previous bull market. For example, among the top ten projects by market value (excluding stablecoins), XRP, DOGE, ADA, AVAX, and SHIB all have more than 70% room to rise from their ATHs; in contrast, the platform coin BNB's performance is second only to BTC, with only 12% room to rise from its ATH. It not only leaves behind SOL (35% from ATH), which has been the most popular in the past year, but even outperforms the second largest cryptocurrency ETH (23% from ATM).
According to a TokenInsight report, in Q1 2024, the platform coins GT, BNB and BGB increased by 107.8%, 94.6% and 80.7% respectively, outperforming BTC (68.9%). The increases in CRO, MX and LEO were also above 50%.
The advantages of the platform currency's blue chip value are fully demonstrated!
According to publicly available data, the private placement prices of BNB, CRO, and OKB were 0.1 USD, 0.015 USD, and 1 USD, respectively. Based on this calculation, their highest increases after listing were 6,863 times, 65 times, and 74 times of the private placement prices, respectively.
This is only the visible increase in the market. If indirect benefits such as Launchpad/Launpool, handling fee discounts, and financial management income are taken into account, the investment return of platform coins is even more amazing. According to a report by Coingecko, the return rate of Binance Launchpad projects in 2022 and 2023 ranged from 11 times to 411 times the initial investment. The top three returns, AXS, MATIC, and SAND, had the highest increases of 1,649 times, 1,110 times, and 1,008 times, respectively.
Although the historical returns are very attractive, it should be noted that the current major platform currency projects are already very mature, and the price is also "a light boat has passed through thousands of mountains". Its biggest disadvantage is that it is too expensive and may not be suitable for chasing high purchases. In contrast, if you can find a new project with good fundamentals and whose price has not yet exploded, it is an ideal target for hoarding coins.
WEEX Weike Trading Platform recently announced that it will launch its global ecological incentive token WXT (WEEX Token) in the summer of 2024. According to reports, WXT is designed as the cornerstone of the WEEX ecosystem, mainly used to incentivize partners, contributors, pioneers and active members of the WEEX trading platform community, so it is only open to partners such as agents and channels for subscription. However, retail investors can still obtain WXT rewards for free through new user registration, trading mining, and participation in platform activities.
Compared with other platform coins that have been online for many years, is the late-coming WXT worth ambush?
WXT, activates the WEEX growth flywheel
WXT is a utility token with a variety of usage scenarios and enabling mechanisms, including Launchpad, nearly 10 exclusive rights for holders, and a buyback and destruction deflation mechanism.
The total supply of WXT is 10 billion, with an initial circulation of 3.9 billion. The token economic model is planned as follows:
WEEX Investor Protection Fund: 15%;
WXT Ecosystem Fund: 15%;
· Coin holding incentive: 15%;
Private placement: 5%;
The remaining 50 % will be used for WEEX ecosystem incentives, including: team incentives (20%), event acquisition (15%), brand building/KOL cooperation (15%).
In terms of token supply, WXT is relatively high among platform coins, but this also leaves ample room for future buyback and destruction. WEEX said that it will start the buyback and destruction procedure when WXT goes online.
From the perspective of the token economic model, 50% of WXT will be allocated to the community and WEEX exchange ecosystem, including new user acquisition through activities (15%), user token holding incentives (15%), brand building/KOL cooperation (15%) and private placement for agents and channel dealers (5%), which means that in the future WXT token holding addresses will be relatively dispersed and sufficiently decentralized.
From the perspective of the release cycle, 45% of WXT is locked up for 5 years, while the investor protection fund (15%) and WXT ecological fund (15%) are obviously also long-term holdings, which means that there is less pressure to release WXT in the short term after it goes online.
From the perspective of the overall WXT distribution mechanism and release cycle, the original intention of all its designs is to seek the long-term development of the WEEX community and ecology. As the WEEX platform continues to grow, the price of WXT is bound to rise, realizing the mutual empowerment and feedback mechanism between the trading platform and the platform currency, forming a positive growth flywheel: more users, larger transaction scale → more income and profit → more platform currency repurchase and destruction → greater community incentives → better platform development.
Valuation forecast: It is expected to increase 102 times after going online
Unlike many projects, we can "see and touch" the trading platform behind the platform currency. There is sufficient and detailed public data disclosure, and non-professionals can also analyze and compare on their own, thus realizing DYOR (Do Your Own Research).
According to the public data query of CMC, the author calculated the average value of "market value/24-hour trading volume (spot + derivatives)" of 9 CEX platform coins, including Binance, Bybit, OKX, Kucoin, Gate.io, Bitfinex, MEXC, Bitget, and Crypto.com, to be 3.51. The 24-hour trading volume of WEEX is $1.14 B. Compared with the circulation market value of the above 9 platform coins, it is estimated that the circulation market value of WXT after listing is about $4 B, and the corresponding currency price is about $1.026 (initial circulation volume 3.9 B). That is, the price of WXT after listing has increased by 102.6 times compared with the issue price of $0.01.
How to obtain WXT?
The WEEX official website shows that WXT is currently being pre-sold to agents and distributors through the "Partnership Plan". Ordinary users can participate in the "Spark Plan" and complete tasks such as registration, KYC, transfers, and contract transactions. Individuals can receive up to 37,600 WXT rewards in total; they can also participate in other activities on the WEEX platform to obtain corresponding WXT rewards.
In the future, when WXT is officially launched, users can also get WXT rewards by participating in trading mining. Of course, the easiest way is to buy at a low price in the secondary market after it is launched.
WEEX's official website shows that users holding WXT can enjoy exclusive airdrops for popular projects (Launchpad), 20% discount on contract transaction fees, higher rebate ratio for Renren Agent, VIP exclusive privileges, the highest proportion of trader profit/rebate, interest on holding coins, sunshine for all (exclusive airdrop for celebrity tokens), voting for listing, and repurchase and destruction, among many other rights and interests.
WEEX: A dark horse platform rising in the bear market
Public information shows that WEEX was established in 2021. The platform started with contract copy trading, and in the early days it mainly relied on agents to acquire customers. At the same time, it gained the trust of users by virtue of its trading depth advantages, investor protection funds, and compliance licenses in multiple countries. It broke through the competitive landscape of "one super and many strong" in the CEX track at that time. In the "Crypto Winter" of 2022, the annual contract business increased by 3,000%, ranking among the top 30 global exchanges.
Entering 2023, as the crypto market began to pick up, WEEX continued its rapid growth momentum. In Q1 2023, the number of trading users increased by 100% month-on-month, with the highest number of newly registered users exceeding 1,000 per day and the number of first-time deposit users exceeding 500, constantly breaking the DAU record. Out of confidence in its own trading depth, WEEX took advantage of the victory and made the industry's first "slippage compensation" commitment. Users participating in ETH and BTC contract transactions can receive spread subsidies when the spread is greater than US$0.2 and US$2 respectively. Through this move, WEEX has attracted a large number of professional high-frequency traders with extremely high liquidity requirements, and the trading volume has further increased, entering the top 20 CMC derivatives exchanges.
In August 2023, WEEX announced a new round of financing with a valuation of US$100 million, led by FSN (214270.KQ), a Korean digital marketing giant and listed company. With the localization advantages of Korean Web3 partners, WEEX has accelerated its layout in the Korean market. At the same time, WEEX has accelerated the pace of listing to make up for the shortcoming of the small number of currencies on the platform. CMC data shows that as of now, the WEEX platform has launched a total of 218 contract currency pairs and 138 spot currency pairs, but there is still a big gap compared to the top exchanges.
In 2024, WEEX launched 0 transaction fees for spot transactions and 0 transaction fees for popular contract currency pairs, launching a "price war" in the fierce competition for users. At the same time, WEEX accelerated its pace of globalization and attracted former MEXC Global VP Andrew Weiner to join as WEEX Global VP to help expand its global market. With the launch of the platform currency WXT, WEEX is expected to start a new growth flywheel, bind more partners through WXT, and further enhance its competitiveness in the global market.
Conclusion
From the historical data, CEX platform coins are one of the tracks with the greatest value-added potential in the crypto market. In addition to the price increase on the disk, there are many indirect benefits such as Launchpad, fee discounts, and financial management income. However, the price of the top platform coins is already very high, and looking for potential projects that have not yet exploded has a higher risk-return ratio advantage for investors. The WEEX platform coin WXT, which is about to be launched, is an ideal layout opportunity. According to the comparable platform data in the CMC Top 15 platform, the price of WXT after the launch is expected to reach US$1.026, an increase of 102.6 times compared with the issue price.
The above analysis is for reference only, DYOR.
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