Author: Nancy, PANewsRecently, Coin Security has been under attack from both sides. On one hand, there has been a gradual pressure from US regulatory agencies, and on the other hand, there has been a dispute in the crypto community over Coin Security's standards and returns

Author: Nancy, PANews

Recently, Coin Security has been under attack from both sides. On one hand, there has been a gradual pressure from US regulatory agencies, and on the other hand, there has been a dispute in the crypto community over Coin Security's standards and returns. In addition to expressing dissatisfaction with the return rate, it has also raised doubts about the new standards. The entanglement with US regulations is bound to be another lengthy legal battle, and it is widely believed that it will continue until the two sides reconcile.

At the center of the storm of public opinion, as the once "bull market Perpetual motion", does the Yuan'an ecosystem have the ability to fight? Can the value capture of Coin An still bring surprises? Is the "traffic effect" of this head encryption factory still present? PANews attempts to explore the truth from data.

Market share and ecosystem on the chain are accelerating their recovery

Compared to the sluggish market of mainstream currencies, in the past period of time, BRC20, Meme, and others have seized the market spotlight with the myth of billionaire growth, and the traffic of active CEX (centralized exchange) trading volume of these concept currencies has been divided by DEX and Bitcoin trading markets. According to TheBlock data, at the end of May this year, the ratio of spot trading volume between DEX and CEX exceeded 21% for the first time. CEX's trading volume was once at its lowest level in history this year, and has now dropped significantly to 13.9%.

But behind these popular concept coins, which seem to be a prosperous scene, is a large number of Survivorship bias. In addition to a few successful bets of "smart money", more investors are faced with risks such as insider trading, fleeing and being buried, and the project running away. Cases that successfully earn high profits are more likely to be disseminated by the community. In fact, the current popularity of these counterfeit coins is continuously declining, and market funds are also starting to flee. The market popularity has returned to CEX.

According to TheBlock data, as of June 7th, the market share of the trading volume of Coin On Month had peaked at 62.01% in February 2023 and continued to decline to 48.58% in March and April, which coincided with the Meme and BRC20 boom. But after April, the market share of currency security trading volume began to significantly rebound to the current 52.9%.

Not only that, the BNBChain ecosystem has also begun to recover. According to the Q1 market performance of 15 L1 public chains counted by Messari, BNBChain's financial revenue and cumulative annual and quarterly change percentage of market value in the first quarter ranked second in the list, second only to Ethereum. At the same time, BNB and ETH were the only deflationary tokens in the first quarter.

According to BNBChain browser data, in recent months, BNBChain's on chain trading has continued to be active. As of June 8th, the total number of transactions in BNBChain has rebounded to 4.064 million, an increase of 80.2% compared to the beginning of the year. Meanwhile, from the number of addresses, there has been an increase of over 110 million since 2023, an increase of approximately 47.8%.

In addition, the daily gas consumption of BNBChain has also continued to increase, increasing by 53.1% compared to the beginning of the year, which indirectly confirms that its ecology is showing an active state. Recently, Coin On has also launched a new GasGrant program, which will provide a monthly gas fee incentive of $200000 to qualified projects, or attract more projects to join.

It is worth mentioning that in April this year, the BNBChain development team launched the decentralized storage infrastructure BNBGreenfield and has launched the testing network "Congo". The main network will be launched in Q3 this year. As the data and storage layer of the BNBChain ecosystem, the launch of BNBGreenfield will further stimulate the growth and prosperity of the BNBChain ecosystem. In addition, BNBChain is expected to undergo a "Luban" hard fork upgrade (BEP-126, BEP-174, and BEP-221) on June 12th, which will create a faster and more secure network for users. The optimization of user experience means that BNBChain's ecosystem will be fed back.

Of course, the most direct relationship with ordinary users is whether the assets launched by Coin Security can truly bring value. "BRC20, Meme and other currencies have gone up in disorder, but no one is interested in them." Under the crypto bear market, counterfeit currencies with dozens of times of return are sought after by funds, which also makes many "classical players" who believe in Value investing anxious. The main reason behind the 'retail revolution' is that assets are heavily discounted in a bear market environment, and investors urgently need more stable and generous returns.

Low priced coins are more likely to capture high gains

For players such as Meme, the main motivation for participation is the high multiples of petty bourgeoisie Jinbo. In addition to high net worth or institutional users, small and medium-sized investors are also the main participants in the market, which makes low-priced currencies their favorite sector, and the data also confirms this.

From the 11 projects (including two IEOs) launched by Coin An in 2023, projects with lower issuance prices, such as ID and EDU, have relatively higher gains. This also indicates to some extent that projects with lower unit prices have stronger appeal and are more popular with investors.

Of course, overall, these new projects have shown good market returns. From the first day's closing gains, the average increase of these projects reached 383.9%, with EDU, SUI, and ARB performing the best; From the perspective of the highest historical return rate, the average increase is as high as 823.4%, especially with ID and EDU increasing 41 times and 32.8 times respectively, and 83.3% of project returns leading Bitcoin in the same period; From the perspective of the time required for the highest profit, users can obtain the highest profit by holding it for an average of 17 days, and 58.3% of the total projects reach new highs within a few days.

From this perspective, compared to high-risk assets such as Meme, Coin On not only serves as the "gatekeeper" of high-quality investment targets, but also generally brings considerable profits to users. Although there have been no similar hundredfold effect projects since the GMT in December 2022, the yield of Coin An's Shangcoin projects is also quite impressive under the bearish market downturn, and tends to provide users with more stable returns.

The underlying logic of using Coin On Coin is to strive for projects where the project team can live longer and bring rewards to users. This is actually the gap between investment research capabilities and aesthetic differences. Which platform can identify suitable coining projects and timing in the long run, and which platform's users can live longer is the core competitiveness of the platform The Launchpad project is the lowest price we can negotiate for users, so users can basically make a profit from IEO. But the prices in the secondary market are not under our control. As for who buys cheap chips and who throws them early, Coin An does not control them, but the project party must unlock them according to the public notice, and Coin An will also supervise He Yi, co founder of Coin An, recently stated in the community.

Bear market returns still exist tens of times higher

Looking back at the past performance of Coin On in the new market, with its excellent marketing and liquidity of top trading platforms, whether it is empowering project parties or providing investment returns to users, the "Coin On Effect" of Coin On is evident to all. So, in the current bear market environment, we can see whether the moneymaking effect of Coin An's online trading is still present based on the annual Launchpad project and the return on BNB holdings.

According to PANews statistics (priced in USDT), Coin On Launchpad has launched a total of 17 projects so far, most of which have achieved returns of tens of times. From the perspective of holding costs, there are relatively more projects with high price gains at low prices, including TKO, C98, BETA, GMT, and ID projects, which are more likely to make most investors "fall in love"; From the first day's closing gains, the average increase of 17 projects reached 1458.2%, with EDU, ID, HOOK, LAZIO, BETA, and TKO performing the best; The average historical highest profit is as high as 5186.7%, with GMT, BETA, and C98 having the highest return rates, especially with GMT having a maximum return rate of 416.8 times; From the perspective of the highest profit time, the average holding time for users to obtain the highest returns is 34 days, with projects that reach new highs within a few days accounting for 52.9% of the total. But from the perspective of yield, projects with longer holding time dimensions have relatively higher returns.

According to the annual division, from the perspective of first day returns, there is a significant difference in the number of new listings for Coin An in 2021 and 2022, but the average returns are basically the same, both exceeding 1371%. Although only two new IEO projects were listed in 2023, the average increase is leading, reaching 2092%. In addition, from the highest historical increase, the average revenue in 2022 is much higher than the other two years, exceeding 153.5 times, mainly due to the 100 times project GMT, followed by a 3690% increase in 2023, and the required time cost is relatively low. The number of new launches on Coin On Launchpad is also in line with the market's popularity. Under the bear market, although new projects are emerging one after another, there are still fewer high-quality projects, and the frequency of launches has significantly decreased. There is no need to increase the number of new launches.

In addition, according to the participation requirements of Coin An Launchpad, the user investment amount is determined based on BNB's average position, so what is BNB's market return? From the data, in 2021, BNB increased by over 11.6 times throughout the year, while Bitcoin revenue during the same period was only 64.4%; After the market started to bear in 2022, BNB fell by about 52.5% throughout the year, while Bitcoin fell by over 65.3%, making BNB more resilient to decline; Since 2023, BNB has only risen by about 12.2%, lagging behind Bitcoin's 62.3%. This is due to the fact that countries such as the United States have tightened their regulation of cryptocurrency exchanges, including cryptocurrency security. BNB, as a platform currency, has also been affected to some extent.

However, overall, in the face of the current bear market environment full of regulatory challenges, whether from the perspective of BNBChain chain activity or product selection, Coin On not only has resilience but also has selling points that attract funds. It is not difficult to see that Coin Security can still fight, and the entire encryption market is gradually transitioning to a recovery stage after a long period of calm.