After FTT Panic, Investors Should Focus More on Exploring Revenue Models
Influenced by Alameda’s assets problem reported by Coindesk, the relationship between Binance and FTX breaking down, the bankruptcy of SBF, and Binance’s finishing acquisition of FTX, the crypto market continues fluctuating.
FTT started with a 20% drop, then surged up to 50%, and finally drove the whole market down. It seems that there are few “winners” in this farce except that Binance can acquire FTX at a low price.
As the second largest crypto ecosystem after Binance, FTX suddenly had to decide to sell the company to Binance in just a few days due to a report about Alameda and the liquidity difficulties caused by Binance selling FTT. This has greatly shocked the global industry and will become one of the most important and influential events in the history of cryptocurrencies. For investors, the top institutions are competing fiercely with each other at their expense. It is undoubtedly very frightening and thought-provoking. This article focuses on the industry revenue model for most investors and the optimal solution in the current market environment.
Let me simply set a multiple choice question: which is more profitable: airdrop, trading or mining? Anyone entering the industry has to figure this out.
Whether it is a bear market or a bull market, airdrop, stagging and NFT whitelist are low-risk. Hunting airdrop bonuses and playing for suckers are always the best strategies. Of course, there are also thresholds for airdrops. First, you must prepare basic tools: Twitter, Discord, and wallet. And it is better to create many accounts, for example, 1000 accounts should be ready at any time. Programmers can also write scripts and use the program instead of manual to operate thousands of accounts automatically. It is not difficult for them.
The advantages of claiming airdrops are low cost, low risk, and unlimited income. But there are also disadvantages. General project airdrops are few and worthless, and it is hard to claim a lot of airdrops of good projects. But claiming airdrops is still something to persevere with, even though few lucky people get rich in this way.
Trading is the most common choice for investors, where the “riches” and “losses” are most attractive. At the same time, the trading objects and instruments in the market are also very diverse and highly selective.
Crypto traders know that the market can soar or plummet. In most cases, we don’t have a good grasp of the market, no one knows where the bottom of the price is and where the top is, and many people can’t tell where to buy or sell bitcoin. In the process of fluctuation, many people will be misled by the market, unable to hold coins and lose money in the process of trading.
For example, in the FTT event, most investors have become victims. What is even more frightening is that such “black swan” events that directly affect the entire market still occur from time to time. Of course, the advantages of trading are also obvious — low barriers to entry, easy access and many opportunities.
The overall development of mining in this industry is not bad, and even some large listed companies have been born, and mining has always been at the head of the blockchain industry, so mining as a whole has an advantage over buying coins.
First, mining is not only an economic behavior, but also a social behavior. Intuitively, it has financial rewards, and in the long term, mining is more profitable with economic value.
Second, mining builds the value of Bitcoin. Bitcoin mining is actually the process of buying Bitcoin at cost price. It is more cost-effective to buy Bitcoin.
Third, mining is an anti-risk measure. We can observe that some miners can go through bulls and bears, constantly accumulating more wealth as the market changes.
Fourth, miners in the new era have more strategies to deal with risks. Nowadays, the division of labor in the entire industry is becoming more and more refined, and financial derivatives are more and more abundant. Miners can use financial derivatives including futures, options, and leveraged loans to achieve relatively stable investments.
Of course, there are also disadvantage of mining. Generally, participation in mining requires some investment, and the threshold is relatively high. Fortunately, the current bear market seems to have greatly lowered the threshold for participating in mining. For example, projects with POS mechanism have greatly reduced the pressure of investors to buy coins due to the price drop.
Take ADAM node mining as an example:
Participating in ADAM node mining requires the storage space to calculate the node computing power. Currently, each T computing power needs to pledge 22.4 ADAM. However, due to the bear market, the price of ADAM has dropped to some extent. The cost of buying coins has now dropped significantly for users, with only about $300 per 100T pledged, while the comprehensive return from participating in mining remains as high as 136%.
Data encryption computing network ADAM
ADAM is the first data encryption computing network based on Web3.0. It has the function of batch data encryption transmission, which can not only connect the world and the blockchain system, but also realize the barrier-free flow of ecological data information of major public chains. ADAM has spawned powerful off-chain computing capabilities by building a global wide-area node network, enabling millisecond-level encrypted computing to realize real commercial-grade “DataFi” applications, so that every role involved in data circulation can benefit from it.