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Having missed the TG Bot leader Banana Gun, what other cash cow projects are worth paying attention to? ——Cross-chain bridge Owlto Finance may be a g

BlockBeats2024/07/23 07:23
By:BlockBeats

What kind of amazing project can be launched on the first BinanceHODLer airdrop portal? ——Banana Gun


The recent explosion of the Ton ecosystem has made TGbot, which was originally a "niche track", the focus of the currency circle. Last Friday, Binance announced that the first project on the HODLer airdrop portal was Banana Gun (BANANA), which successfully ignited another wave of sparks. As soon as the news came out, $BANANA briefly broke through $80, rising more than 30% in 1 hour.


Banana Bot was launched in June 2023. It is a trading robot on TG. It makes profits by earning transaction fees and stands out with its fast speed, low cost and high stability. After the coin was issued in November 2023, the market value was 100 million US dollars. In more than half a year, it has been advancing all the way. Now the market value of more than 700 million US dollars has more than doubled 7 times, ranking #237 on CoinMarketCap.


Currently, its total number of users has reached 210,000, and the number of daily active users is stable at around 5k. Just last month, Banana Gun's monthly trading volume exceeded 700 million US dollars, and its revenue was as high as 4.64 million US dollars.


Banana Gun's listing on Binance this time represents that the direction of Binance's listing has really begun to change.


In the first half of 2024, Binance launched a king-level VC coin-a dead end that only talks about technical narratives but does not land


The reason for the change in the direction of Binance's listing is actually easy to understand. A number of tokens launched on Binance in the first half of this year (such as Starknet, zkSync, Wormhole, etc.) are all falling. Most of them are ridiculed as "high FDV (fully diluted value), low circulation" tokens. These tokens have quite high FDV valuations, but the circulation supply on the first day is very small.


These projects are not supported by a strong community and user base. They are only supported by beautiful data from the LuMao studio. The project parties and VCs are talking to themselves and making high-style technical narratives, but they turn around and let retail investors take over. These actions have caused angry retail investors to call for "anti-VC coins" and "anti-high FDV" in the community. The secondary market is no longer willing to pay for these projects, nor is it willing to take over for the project parties and VCs-even if the top VCs have not yet fully unlocked and started selling a large number of tokens. In the face of the wrong pricing of the project, the top VCs have also become "large leeks."


Starknet: The valuation of the last round of financing was 8 billion US dollars, and the highest FDV at the opening was 27 billion US dollars. The current market value is only 850 million US dollars (FDV 5 billion US dollars), which is a 77% decrease from the launch of the token. Compared with the highest daily active users of 16,000 on the eve of the airdrop, the daily active users are only in the single digits now.


zkSync: The valuation of the last round of financing was 2 billion US dollars, and the highest FDV at the opening was 5.6 billion US dollars. The current market value is only 700 million US dollars (FDV 4 billion US dollars), which is a 27% decrease from the launch of the token. Compared with the highest daily 45,000 funds passing through the official cross-chain bridge before the airdrop, there were only 4 transactions on the zkSync cross-chain bridge on July 19, which is only half of the minimum value of 8 transactions on the Starknet cross-chain bridge.


Wormhole: The last round of financing valuation was 2.5 billion US dollars, and the highest FDV at the opening was 14.2 billion US dollars. The current market value is only 600 million US dollars (FDV 3.4 billion US dollars), which is a 76% decrease from the launch of the token. As of now, there are only 110,000 user addresses.


In the Twitter AMA last month, Yijie also reflected on this model: "The king-level projects and Lumao Studio have worked together to create a wave of beautiful data. On the one hand, the project parties can raise more money from VCs. On the other hand, the project parties with money and users are full of confidence. There are millions of users on the chain. It doesn’t matter if they don’t go on a certain platform. There are many CEXs to go on. If CEX doesn’t go on, there are DEXs. At worst, there are native DEXs on their own chains." "The fratricide between Lumao Studio and L2 projects has turned into a farce. The Lumao era may be over."


Meme - How is the next incremental market of CEX performing?


BOME, which was launched on Binance 3 days ago, had a market value of 1.5 billion US dollars at its peak, successfully creating a myth in the currency circle. The concentrated outbreak of meme coins in March and April this year, and huge traffic was concentrated in this new market, which is another sweet spot for trading platforms. Today in Coingecko, 6 of the top 15 tokens in terms of trading volume (except stablecoins) are memes.


Binance launched BOME, reaped the benefits and made money, and it also seemed to indicate that meme is the next incremental breakthrough. But the launch of BOME also made Binance scolded badly. How many more memes can Binance launch under the uproar and doubts of public opinion? Even if the meme track deprives some VC tokens of their roles in the future, it will not be able to become the mainstream object of choice for trading platforms.


Although the emerging meme focuses on fairness and is as close to the selling point of decentralization as possible, it is also questioned because of compliance issues. According to rumors some time ago, Unpit is going to remove a batch of coins and requires all tokens to have kyb and kyc, and memecoin may face the risk of being removed because there is no real-name team.


Based on the Degen culture of the currency circle, millions of meme coins appear every year, which also means that there is great uncertainty in meme coins-huge risks are accompanied by skyrocketing and plummeting. Hype meme requires a big heart and be ready to return to zero at any time. In fact, "listing" is an unattainable goal for most meme coins. It is difficult for them to develop sufficient trading volume and large market value. Even with a large enough trading volume and a market value of over 100 million, such as TRUMP with nearly 800 million US dollars and FIGHT with a trading volume of nearly 150 million US dollars, these memes with political positions are difficult to achieve the goal of "listing".


Yijie's opinion: "The anti-VC wave and the popularity of memecoin reflect the lack of high-quality assets in the market."


Where will Binance go next?


He Yi said in Twitter Space: "The blockchain industry has entered a special stage, similar to the process of technology moving from a niche market to a mass market. For example, early technologies such as VR and 3D printing, although very popular, have not been widely used because they have failed to cross the gap and move from a niche market to a mass market."


Similar to the Internet bubble in the United States in the late 20th century, cryptocurrency is also a bubble with technological attributes. The low interest rate environment in the United States since 1991 has provided funds for many Internet companies. Although these companies lack actual operational capabilities, they have novel narratives and concepts and rely on venture capital to gain market share. But in fact, these companies have been losing money for a long time, and because of the long-term losses, they have become difficult to value. In many stock markets such as Europe, America, Asia and Europe, they have been pushed to a staggeringly high valuation.


After the Internet bubble burst, companies that were once highly valued stopped operating after burning out VC funds, fell from the altar, or even went bankrupt and were acquired. These companies include Netscape and Yahoo. Since then, newly established Internet companies or those with new business models have become the well-known technology giants such as Meta, Netflix, and Google, all of which grew up after the bubble burst.


This is a very interesting trend in history. In the wave of technological innovation, the remaining winners are the 1-2% after the bubble. Companies that can bring about industrial revolutions are projects that can bring practical application scenarios, cross the gap, and implement business models. The same is true for the Web3 industry. With the self-regulation of the market, it is gradually transitioning from a wild growth period, an era of competing to see who has stronger narrative hype, to an era with mature business models.


Yijie said: "I hope there will be more projects with real business models built on the blockchain, rather than just staying at the empty concept", "We hope there will be more friends in the market who are willing to do solid projects, not just launch air projects", "We hope that every project has sustained growth and a good business model."


Why do projects like Banana Gun and Pump.fun come out?


High user activity: Compared with Wormhole/Starknet/zkSync, which have strong capital endorsements but are actually just fighting each other with the Mao Studio, Banana Gun and Pump.fun have real and active users. People are having a lot of fun playing memes in Pump.fun, and they are having a lot of fun speculating on local dogs in Banana Gun. "Technical barriers" are all paper tigers, and "someone comes to play with you" is the key to survival.


Market trend from "off-chain brokers" to "on-chain brokers": The maturity of Layer 2 means lower gas fees and faster transaction confirmation time. The increasingly perfect on-chain Infra makes the interaction of dApps smoother, so there are a large number of transactions/cross-chain/lending, etc. on the chain, and the on-chain market covers funds that CEX cannot access. The trading platform can only cover a few leading companies, and other funds will overflow to the edges and corners of the industry. Platforms such as Banana Gun and Pump.fun, which are playing local dogs, cover these online needs of users very well.


"Cash cow project" mature profit model: The on-chain fee model has been accustomed and accepted by users, so a group of cash cow projects have emerged. During the peak period of the meme market, Banana Gun's daily income was as high as 200,000 US dollars, and it could also have a daily income of 70,000 US dollars when the industry was sluggish. It's not just CexFi. Now DeFi can really make money and get a share of the market by charging fees.


Who's next? Owlto, a cash cow project that meets the above requirements


Owlto Finance is a cross-chain bridge track belonging to Web3. Its success lies in its emphasis on fundamentals and community building rather than relying on large-scale market publicity and narrative. By investing more resources in community building and research and development, Owlto won a group of loyal users in the early stages. At present, Owlto has nearly 2 million users in more than 200 countries and regions around the world, supports more than 45 networks and 16 mainstream wallets, and has more than 100 ecological partners.


The cross-chain bridge track is actually an application track with a clear business model. It does not need projects like Wormhole/Layerzero/Polyhedra that are still telling big stories to deceive VCs and leeks. Users can already vote with their feet and choose the best bridge.


Similar to the TGbot track and meme launch platform, the cross-chain bridge is a necessary tool for on-chain operations rather than a pseudo-demand. It can be seen that 70% of the top 10 bridges on DefiLlama have issued coins, but there are still active interactions. Cex trading platform can be the first choice for off-chain transactions and cross-chain, but Cex covers almost all mainstream chains and popular coins, but many other popular Layer 2s are not supported. Therefore, the uncovered demand under the chain has been transferred to the chain, and Owlto, as the cross-chain bridge with the most comprehensive network coverage, is fast and low-cost, and has been selected by users as the "best bridge".


No less than the TGbot track, the cross-chain track is also very lucrative


If TGbot is "selling water around the gold mine", helping traders to achieve high risk returns through buying and selling; then the cross-chain bridge is "selling scissors by the sheep farm", helping users who are chasing dogs to achieve low-cost high chips. As long as there is a huge amount of cross-chain demand, Owlto Finance can easily achieve the "cash cow" profit model by charging handling fees.


Let's take a look at a set of data. Just today (July 23), Owlto's 24-hour cross-chain volume has exceeded 110,000, and it can be seen that the cross-chain fee on its website is about US$3, which means that its revenue today is about US$330,000. Compared with Banana Gun's daily income of up to 200,000, Owlto's amazing income is 1.65 times that of Banana Gun's maximum daily income!



Owlto Finance was launched in June 2023. In just one year, it became the first cross-chain bridge on DefiLlama (24-hour cross-chain volume). It has just completed two rounds of financing. The first round of financing of 8 million US dollars was announced in May this year. A new round of financing was announced last week. The current valuation is 150 million US dollars. Its official Twitter said that it will take the first round of snapshots in Q3 and will announce its token economic model soon. At present, Owlto has also launched the Owlmazing Summer one-month points airdrop event. As the next promising Binance project, you can participate in their activities.


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



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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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