Can the "leverage" of Coin An once again leverage the rise of BNB?

Edited by Xin Nan | Lu XiaomingProduced | Daily Planet (ID: o daily)The path of Coin An is quietly undergoing a "change".The long-awaited Coin Security Derivatives Platform has finally been launched

Edited by Xin Nan | Lu Xiaoming

Produced | Daily Planet (ID: o daily)

The path of Coin An is quietly undergoing a "change".

The long-awaited Coin Security Derivatives Platform has finally been launched. On the evening of September 2nd, Coin On announced its acquisition of the digital currency derivative trading platform JEX. JEX will join the Coin Security ecosystem as BinanceJEX, providing users with services including derivative products such as futures contracts and options.

On the afternoon of August 28th at 14:00, Coin An officially launched its new product, Coin An Bao, which sold out in less than a minute, giving it a hint of buying IEO shares. The interval between the exposure and official launch of this new financial management business is less than a week. And less than 10 days have passed since the release of the Qixing Plan by Coin An not long ago.

In the past two months, Coin Security has frequently launched new businesses on its own platform.

From the planned opening of contract business to the current opening of leveraged trading, benchmarking Libra for regional token startups, and opening of wealth management product Coin Anbao... Coin Anbao has started to incorporate some previously reluctant businesses into its strategic layout, continuously expanding its business landscape.

At the same time, Binance, which has always focused on overseas markets, has also made efforts to expand into the domestic market and launched Binance. net, which is smoother for domestic users to use.

People evaluate that compared to the previously stable and slightly "cold" currency An, the current currency An seems to be following a "people-oriented route".

Behind the various actions that do not match its temperament is the efforts of Coin An to cope with a turbulent stock market battle.

Can Coin An compose a myth again this time?

The profit making effect of IEO is gradually weakening

The IEO project of Coin An is just as bad as the ICO in 2018- it's still a performance in the bull market, it's really impressive. "After the new phase of Coin An's IEO project Perlin was launched, analyst Alex Kr ger exclaimed.

On August 25th, Perlin launched the Coin On Launchpad as scheduled, but investors did not wait for the expected high returns. According to ICOAnalytics data, the ROI of the Perlin token PERL in the first hour was only 1.7 times.

For investors who are accustomed to opening 5 or even 10 times, Perlin's gains are like cold water.

In the beginning of 2019, the IEO gameplay pioneered by Coin An revitalized the stagnant coin circle at that time, and BTT's 5-fold increase on the same day and the instantly empty transcript when it went online attracted a number of exchanges to follow suit.

To participate in the wealth creation story of IEO and obtain the IEO subscription limit, one must hold a position in the platform currency of the exchange. This has driven the rise of platform coins, and the popular IEO has provided application scenarios for platform coins, attracting more real gold and silver.

From the performance of the flat Taiwan dollar during the IEO promotion cycle, it can be seen that BNB is the most interconnected. "Analysis by OK Group Senior Researcher De Yun Lora believes that BNB is the biggest beneficiary of this IEO craze.

(Data image provided by Deyun Lora, Senior Researcher of OK Group)

Since the beginning of 2019, BNB has skyrocketed from $5 to a maximum of around $39. According to the BNB destroyed by Coin Security every quarter, the profits for Q1 and Q2 of this year were as high as $78 million and $119.19 million, respectively.

The IEO, which boasts high returns, also has high requirements for the project team. In today's world where blockchain technology and applications are still being explored, it is evident that there are not many good projects, and investors' enthusiasm is not as strong as before. As the market gradually weakens, IEO's earnings may even struggle to compensate for the losses caused by the decline in platform currency prices during the holding period.

Only if the average position within 15 days is greater than or equal to 500BNB, users can receive a ticket (chip) to participate in the IEO lottery.

The latest snapshot of IEO users' BNB holdings started at 8am on August 9th. Coinmarketcap market data shows that on August 9th, BNB prices remained stable at around $30, with a peak price of $31.17. However, from August 9th to August 25th, BNB prices fluctuated and fell, and by August 25th, BNB prices had dropped to around $26.

If you have a full position of around 100000 yuan and receive an IEO return of 600 to 700 yuan, it's not enough for the BNB to fall during the holding period. So what's the point of using a new account? "Said an investor.

Investors also view IEO as a "minimum guarantee" and "welfare" that can be obtained by holding platform coins.

So many people holding positions are not here to gamble on luck, they are (here) taking what should have been BNB's position benefits. Now, BNB's position benefits rely on betting on luck? "Investors bluntly said," IEO's minimum living allowance is not delicious anymore, Saiya

The end of the IEO profit model finally convinced investors of the unsustainability of IEO. The online explosion of more than ten times is already a glorious achievement in the past. Nowadays, platform coin holders have to bear the risk of not only fluctuations in platform coin prices, but also the risk of declining IEO returns.

Without IEO, how will platform currency be attached?

Once the myth of wealth creation by IEO is shattered, the market value of the platform currency blown up by IEO is also on the verge of collapse.

Some users not only failed to win the lottery, but also watched the coin price fall below their psychological expectations. As a result, there have gradually been voices in the market bidding farewell to BNB and selling and cashing out.

When BNB fell to around $25, some investors couldn't sit still.

Investor Joesnow has been investing in BNB since November last year. He revealed to the Daily Planet that since the end of the last IEO (Elron), he has sold most of the BNB. After another IEO test, he bluntly said, "BNB is at the end, it can only be here

Another analyst believes that the IEO craze for platform coins has basically come to an end. The possibility of platform currency doubling in the future is not too high. In the long run, platform currency is a very good investment target, but from a profit making perspective, platform currency has accumulated most of the funds in the currency circle, and its market value is already very high, with weak follow-up.

Some people commented directly on Coin An Weibo to bid farewell to platform coins, while others went to He Yi Weibo to advise, saying that IEO is' destroying users' and suggesting a temporary suspension: "The wave of coin circles is coming to an end, there is no net entry funds, only a small amount of existing funds are being cut off from each other. It is recommended to suspend IEO

The value of platform currency is supported by the popularity of the platform. Users won't be able to read the financial reports or profitability of your exchange in detail. When the popularity increases, some people do make money in some activities, and they think this platform is sustainable, "said Luke, an exchange practitioner.

The launch of New Coin Cocos on the Coin An motherboard also showed users that the Coin An brand is no longer a golden sign. During the same period, negative news such as KYC identity leakage and low investment returns of IEO projects erupted, further amplifying pessimistic sentiment.

If users ship in large quantities, the trend of platform currency will be weaker, at least if a vicious cycle is about to occur.

Despite this, there have not been many new ideas and growth points in the market. If there are no losses in the short term, IEO still needs to continue. In July, He Yi also revealed that in the next three months, Coin An will launch at least five IEO projects.

Stock Battle, Coin An Promotes Multiple New Businesses in the Short Term

The negative decline of platform currency indicates that there is really no new funds in the market, and currently all existing funds are playing games. "An analyst analyzed the current market situation.

When asked about the current survival situation of the exchange industry, exchange practitioner Luke summarized to the Daily Planet Daily: "The entire market has encountered a bottleneck in growth, and the frequency of user transactions has decreased

According to statistics from the Blockchain Transparency Institute, the trading volume of Coin An has decreased by 35.63% in the past 30 days, and only 7 out of the 39 exchanges it has included have shown a positive growth in their 30-day trading volume.

Platform currency and IEO have been one of the major gains for exchanges since 2019. IEO drives the rise of platform currency, which in turn reduces users' concerns about participating in IEO.

Nowadays, exchanges urgently need new scenarios to support platform currency prices.

In a research report by OK Research Institute, it was analyzed that there are two ways to increase the value of platform coins - expanding application scenarios and encouraging buying through methods such as equity richness; Reduce circulation through methods such as lockdown and destruction.

If we say that on the road of encouraging buying, the driving force of IEO is almost exhausted, but the rules of reducing circulation and continuous repurchase also make platform coins bullish for a long time.

However, this analysis suggests that on the path of reducing circulation, platform currency has basically reached its peak, and the way to increase its value needs to shift from reducing circulation to encouraging buying as soon as possible. The so-called encouragement of buying is to increase the platform currency scenario and increase demand.

After IEO's gameplay expired, exchanges sparked a wave of enthusiasm to seize the high ground of contracts.

Coin An's movements have also become frequent.

A year ago, He Yi vowed at an online media Q&A meeting that CITIC would not touch contract transactions. A year later, Zhao Changpeng voluntarily announced in public that he would soon provide futures contract trading, and in a short period of time, the leverage and wealth management products of Coin An were quickly launched.

There must be a bottleneck, otherwise I won't hit myself in the face, "said Damon, a practitioner in the industry.

Analyst De Yun believes that the contract market is a battlefield suitable for Coin An to gain new growth: "The transaction fee income of contracts is definitely larger than that of spot goods, and Coin An's global market expansion is also quite good. It is difficult to have particularly impressive growth in globalization, so we simply divide the contract cake

Everyone has ambition. Even though today everyone thinks that Coin An has good traffic and many users, there are fewer ways to make money. Moreover, even if the existing business makes money, it cannot always adhere to fixed business. If OK stands up and says, I made 5 billion yuan in futures, who wouldn't be envious

Almost everyone believes that contracts are a good business, and rather than giving up on this cake, it's better to show off and enter.

On July 11th, Coin An officially launched a margin trading service, known as leveraged trading, which allows all traders to borrow up to three times their guaranteed amount. On the first day of opening, approximately 10000 traders lent $15 million; On July 26, Jin'an launched the Block trade function, providing Block trade with more than 10 BTCs.

In August, the "update" speed of Coin An has become faster, which is unprecedented.

On August 16th, Zhao Changpeng revealed that he expected to launch Binance. US within the next two months; On August 19th, Coin An announced its plan to create a regional version of Libra's "Rising Star" program; On August 26th, it was confirmed to launch the restricted digital currency wealth management service of Coin Anbao; On August 27th, the commission rebate rule was revised, and the inviter can receive up to 40% of the transaction commission rebate.

For the frequent launch of new business, the internal personnel of Coin Security say that it is considered to be a complete completion of the business line.

Regarding the frequent launch of new business by Coin An, some have seen its efforts to expand into new scenarios, while others speculate on the pain behind these choices:

Adjusting the commission rebate to 40% shows how difficult it is to find an increase. It seems that there has been too much user churn

Will the market pay for alternative ways to manage wealth?

Encouraging buying is simply what platform currency can do. Deducting transaction fees and obtaining additional optimizations is a great scenario, and what can also be done is the mortgage lending of platform currency. "Deyun analyzed feasible ways to continue generating blood for platform currency in the future.

As a matter of course, the regular wealth management coin Anbao has also been launched, and this ToC business has become a star recently.

In the rules of Coin Anbao, Coin Anbao assets will be used for Coin leverage borrowing business of Coin Anbao. According to the product page of Coin Anbao, the products include BNB14 days (15% annualized return), USDT14 days (10% annualized return), and ETC14 days (7% annualized return).

Simply put, Coin Anbao is similar to the concept of Yu'ebao, but its annualized revenue is much greater than Yu'ebao, which only has 3%.

But the method of depositing coins and generating interest is not a new business in the coin circle. Similar lending financial services have already been launched on platforms such as Bitline, Gate, and OKEX.

Nowadays, those seemingly flashy derivatives are all following the old path of traditional finance, "an exchange practitioner told the Daily Planet Daily. After encountering growth bottlenecks, many exchanges are choosing to make wealth management products.

There is a lack of newcomers in the circle to contribute, and Coin An wants to retain users while also slowing down the decline of BNB through lockdown. "An analyst analyzed Coin An Bao's role in this way. If the increment is limited, the top priority is to find ways to maintain existing users and funds.

But at a time when the platform currency price has not yet stabilized, can this financial product save market sentiment?

The sales situation that sold out on the same day was quite optimistic, but users also exclaimed, "Don't think about financial management in the coin circle, it's completely meaningless. It feels like the interest rate is quite high, but in reality, it may not be enough to rise or fall in a few minutes

Similarly, the industry has varying opinions on the regular wealth management product "Coin Anbao".

Analyst Jin Ma wrote in his analysis article that there were many restrictions on the leverage borrowing function before, with different registered borrowing quantities and frequent situations where there were no coins to borrow. It seems that Coin Anbao has little promoting effect on platform currency BNB, but it makes Coin Anbao transactions more complete.

Borrowing is a necessity. Coin An has completed the borrowing function before, but now it has completed the lending function. This will take away many users of the lending platform, and I think it is a very good function, "said Jinma.

Indeed, many people associate the recent popularity of Defi with the lending services of Coin An, exploring whether the centralized business of Coin An will divide up the already small decentralized lending market.

Defi's users and centralized lending users are basically not overlapping. This centralized asset management business, without strong supervision, poses great risks. I don't know what risk control measures Coin An has. In Hong Shuning's view, Coin An's Coin An Bao business is more like the C2B2C model, and he believes that Coin An does not have sufficient supervision to endorse; But it does not deny the demand for this business. He predicts that this business model will be popular for a while, and other exchanges will continue to increase interest rates to grab customers.

If it weren't for this, would the exchange be using customer funds to lend? This is also great, and we can still lend to the exchange. "PayPal is very optimistic about Coin An's business. In Yang Zhou's view, Coin is circulated within the exchange, and risk control is internal. Defi is based on smart contracts, which also carries many risks, and to some extent, it is not as good as Coin An with strong credit endorsement.

In today's dull market that is difficult to stimulate user trading, exchanges are more or less facing bottlenecks. Previously, Coin An was always a market breaker.

This time, is it still Coin An?