It isn't a SALE! (thoughts on BTCST, and synthetic τBitcoin).

in CryptoDog2 months ago

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These days, I'm sitting at a computer more often due to the studying of a Masters of Teaching. Either writing assignments or listening to tutorials and lectures... but just in general, completing the online course at my own pace.

It does mean that I do like to take the occasional break and try and help out some people in the Binance Academy Telegram channel. From doing that... I start to realise that crypto is quite difficult and new for many people. Of course, many of the questions are able to be answered by a quick general Google (or Presearch search) search or a quick hunt on the Binance Academy website. Still, it doesn't hurt to answer the questions and help out people who are completely lost.

However, it does also surprise me that there are people who are happy to throw their money around whilst obviously having NO CLUE about what blockchains and cryptocurrencies are. Well, beyond green good, red scammers and we will be all millionaires by next week... if only someone told me which coin will do a 1000000000x in the next minute. To be honest, that sort of lack of knowledge is just asking to either be scammed or to just inadvertantly lose your money... and as we all know, there is no central authority on the blockchain to fix your problems.

Recently, with the hype around Binance Smart Chain, I've seen quite a few people drop in with sending tokens to the wrong chain... they don't understand that Ethereum and BSC (and everything else...) are completely different networks, and that they need to use a bridge to cross over. They just see LOW TRANSACTION FEE... Ooops... everything gone... (or if you are lucky, dealing with the completely backlogged Binance customer support)... panic leads to scammers taking advantage. Although... how gullible (or self important) do you have to be to think that on a random Binance Telegram devoted to Crypto Education, CZ HIMSELF is going to personally contact you to recover your tokens?

Anyway, back on topic... but slightly related to the idea of educating yourself before throwing money around. I have seen quite a few DeFi hacks or rug-pulls where people thought that they were getting a 99% DISCOUNT on a particular token... I mean, the chard looks like it fell off a very very steep cliff on the 1 minute time scale! And then the same people complain afterwards that they had NO IDEA that the project was a scam or bust! ... hmmm... seems to me like greed beat thought! If I saw a 99 percent drop in a token in less than a minute, well... I would be having second thoughts... my first thought wouldn't be... IT'S A SALE!

Recently, the BTCST (token backed by BTC mining hashrate) token had a 1:10 re-denomination (much like Polkadot did last year). I do question the need for a re-denomination, it is purely psychological... you still have exactly the same "thing". Just like a stock split... except stocks can't be fractionlised!

Basically, it means that 1 token will become 10 tokens afterwards (no requirement to do anything). As you may have guessed, that means that the PRICE of an individual token would drop by 10 times. But you have 10 times MORE tokens... so, exactly the same as where you started in worth.

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Let's just say that I wasn't too surprised when I started seeing questions on Twitter and the Academy Telegram saying one of two things:

  1. SCAM! Why the huge drop in price?
  2. SALE! BTCST tokens are on SALE!

Actually, if you take a quite look at the price after the re-denomination (~50 USDT) compared to before (~440 USDT), it is trading at a bit of a premium immediately afterwards!

Now, this could be due to the SALE people piling in thinking that they have gotten a 80% discount... and I was happy to dump a little bit on them.

... or it could be due to some incoming news. Airdrop for BTCST holders...

BTCST Annoucement

So, the BTCST project is branching out from mining "pure" Bitcoin into mining the synthetic τBitcoin. I'm a bit mixed about this development... I would prefer that they stick to mining real Bitcoin instead of a synthetic version. In general, I'm not really so happy holding synthetic tokens... I would prefer the real tokens on any day of the week. Just in case...

I also do have questions about how the mining power will be directed. Will be done as "Merged Mining" where the miners are working simultaneously on both blockchains? Or will it be split. If it is Merged, I don't really care... it's just extra revenue. However, if it is split and we will have to decide how to split our BTCST stake, I'm much less keen. I will stick to the real Bitcoin if that happens, but it does mean that the total mining hashrate of the BTCST pool will be split.

Well... we will see how this develops. Meanwhile, there is going to be a drop for BTCST stakers and holders. I'll never say no to that... especially when I'm already invested in the project! However, I'm not going to add more... Chasing Airdrops is a good way to get dumped on!

Handy Crypto Tools

Ledger Nano S/X: Keep your crypto safe and offline with the leading hardware wallet provider. Not your keys, not your crypto!
Binance: My first choice of centralised exchange, featuring a wide variety of crypto and savings products.
Kucoin: My second choice in exchanges, many tokens listed here that you can't get on Binance!
Coinbase: If you need a regulated and safe environment to trade, this is the first exchange for most newcomers!
Crypto.com: Mixed feelings, but they have the BEST looking VISA debit card in existence! Seriously, it is beautiful!
CoinList: Access to early investor and crowdsale of vetted and reserached projects.
Cointracking: Automated or manual tracking of crypto for accounting and taxation reports.

Ledger Nano S - The secure hardware wallet


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