It’s the right time to stock up on platform coins at the beginning of the bull market, and look for the value depression of CEX platform coins

Original source: WEEX Weike Trading Platform

The Ethereum spot ETF 19b-4 application was approved as scheduled, SOL ETF is eager to try, and the cumulative net inflow of BTC ETF funds has exceeded US$57 billion, and the bull market horn has sounded again.

It’s the right time to hoard coins at the beginning of the bull market, but what projects should I choose?

At present, each track is already very crowded, and many projects are still in the early concept stage. Whether they have solved the pain points and whether the business model can work is still a question, but the valuation has reached tens or hundreds 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 US$50 billion, while the new issuance volume of the US CMBS (commercial mortgage-backed securities, a commercial real estate asset securitization tool) market in 2023 is only US$100 billion. For example, there are more than 250 projects in the AI and big data sector, with a total market value of more than $40 billion, which is more than half of OpenAI's valuation.

Compared to these high-end 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. The most important thing is that each round of bull market has its own star track, but this type of project is everlasting, and the increase is not inferior to other tracks. Hundred-fold coins are frequently issued, and there are also thousand-fold coins. That is CEX platform coins.

CEX platform coins, 100-fold coin concentration camp

This round of bull market is called "mutual non-acquisition market". 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 currency 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 in the limelight for nearly a year, but also outperforms the second largest cryptocurrency ETH (23% from ATM).

According to the TokenInsight report, in Q1 2024, the platform currencies GT, BNB, and BGB increased by 107.8%, 94.6%, and 80.7%, respectively, outperforming BTC (68.9%), and the increases of CRO, MX, and LEO are all above 50%.

The advantages of platform coins over blue chips are fully demonstrated!

According to publicly available data, the private placement prices of BNB, CRO, and OKB are $0.1, $0.015, and $1, respectively. Based on this calculation, their highest increases after listing are 6,863 times, 65 times, and 74 times the private placement prices, respectively.

This is only the increase in the market that can be seen by the naked eye. 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 the Binance Launchpad project during 2022 and 2023 ranged from 11 times to 411 times the initial investment. The highest increases of the top three returns, AXS, MATIC, and SAND, were 1,649 times, 1,110 times, and 1,008 times, respectively.

Although the historical returns are very attractive, it should also be noted that the current major platform currency projects are already very mature, and the price is also "a light boat has passed 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 get WXT rewards for free through new user registration, trading mining, and participating in platform activities.

Compared to other platform coins that have been online for many years, is the late-coming WXT worth ambush?

WXT, Activating the WEEX Growth Flywheel

WXT is a practical token with a rich set of usage scenarios and empowerment 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 Ecological Fund: 15%;

· Coin Holding Incentive: 15%;

· Private Placement: 5%;

· The remaining 50% will be used for WEEX Ecological Incentives, including: team incentives (20%), activity acquisition (15%), brand building/KOL cooperation (15%).

From the perspective of token supply, WXT is relatively high among platform coins, but this also leaves ample room for future repurchase and destruction. WEEX said that it will choose the right time to start the repurchase and destruction procedure after 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 activities (15%), user token holding incentives (15%), brand building/KOL cooperation (15%), and private placements 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 will be locked for 5 years, while the investor protection fund (15%) and WXT ecological fund (15%) are obviously long-term holdings, that is, there is less pressure to release WXT in the short term after it goes online.

From the perspective of the overall WXT allocation mechanism and release cycle, the original intention of all its designs is to seek the long-term development of the WEEX community and ecosystem. 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 trading scale → more income and profit → more platform currency repurchase and destruction → greater community incentives → better platform development.

Valuation forecast: expected to increase 102 times after launch

Unlike many projects, we can "see and touch" the trading platform behind the platform currency, with sufficient and detailed public data disclosure, and non-professionals can also analyze and compare by themselves, thus realizing DYOR (Do Your Own Research).

Based on 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 102.6 times compared with the issue price of $0.01.

How to get WXT?

The WEEX official website shows that WXT is currently being pre-sold to agents and channel dealers through the "Partnership Plan". Ordinary users can participate in the "Spark Plan" and complete tasks such as registration, KYC, transfer & contract trading. 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, after WXT is officially launched, users can also obtain WXT rewards by participating in trading mining. Of course, the easiest way is to buy on the secondary market directly after the launch.

The WEEX official website shows that users holding WXT can enjoy exclusive airdrops for popular projects (Launchpad), 20% off on contract transaction fees, higher rebate ratios for Renren agents, VIP exclusive privileges, the highest proportion of trader profit sharing/rebates, interest on holding coins, sunshine (exclusive airdrops for star tokens), voting for listing, and buyback and destruction, among many other rights and interests.

WEEX: A dark horse platform rising in a bear market

Public information shows that WEEX Weike Exchange was established in 2021. The platform started with contract copy trading. In the early days, it mainly relied on agents to acquire customers. At the same time, it gained the trust of users with its trading depth advantages, as well as the advantages of investor protection funds and multi-national compliance licenses, and achieved a breakthrough in 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 exchanges in the world.

In 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 proposed the "slippage compensation" commitment for the first time in the industry. Users who participate in ETH and BTC contract transactions and the spread is greater than US$0.2 and US$2 respectively, can receive spread subsidies. 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 of CMC derivatives exchanges.

In August 2023, WEEX announced the completion of 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 coins to make up for the shortcoming of the small number of coins 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 also launched 0 transaction fees for popular contract currency pairs, starting a "price war" in the fierce battle 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 historical data, CEX platform currency is 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 currency is already very high, and looking for potential projects that have not yet exploded has a higher risk-return ratio advantage for investors. The upcoming WEEX platform coin WXT is an ideal layout opportunity. According to the comparable platform data in the CMC Top 15 platform, the price of WXT after listing is expected to reach $1.026, an increase of 102.6 times compared with the issue price.

The above analysis is for reference only, DYOR.

This article comes from a contribution and does not represent the views of BlockBeats

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