HOWTO: Binance Community Coin Round 5 — Hedge Op

Binance

I’ve only recently started tracking Binance and their monthly “Community Coin” events in which basically “Binancians” are able to vote using Binance’s own token, $BNB. Each user is allowed to vote on a list of coins presented by Binance, and the winner is given a free listing on their exchange. You can vote a maximum of once per contestant as a user (e.g. you can vote once for two you would like to see listed). There’s been recent FUD about Binance’s “Community Coin” events on social media and whether if the FUD is true or not doesn’t detract from one of the underlying understandings in the cryptocurrency markets:

Having your coin or token listed on an additional exchange to provide liquidity is a guaranteed catalyst for a short-term rise in price.

History:

Round 1 (September 2017): Stratis ($STRAT)

  • 9/01/2017 (Vote): $7.32 USD
  • 9/12/2017 (Announced): $5.71 USD
  • 9/14/2017 (Listed): $4.14 USD
  • 12/31/2017 (Present): $14.06 USD

* 92% Return between Vote & Present

Round 2 (October 2017): Substratum ($SUB)

  • 09/30/2017 (Vote): $0.045 USD
  • 10/09/2017 (Announced): $0.139 USD
  • 10/10/2017 (Listed): $0.160 USD
  • 12/31/2017 (Present): $1.110 USD

* 2367% Return between Vote & Present

Round 3 (November 2017): ZCoin ($XZC)

  • 10/31/2017 (Vote): $15.55 USD
  • 11/09/2017 (Announced): $18.63 USD
  • 11/22/2017 (Listed): $34.55 USD
  • 12/31/2017 (Present): $112.39 USD

* 623% Return between Vote & Present

Round 4 (December 2017): ETHLend ($LEND)

  • 11/30/2017 (Vote): $0.015 USD
  • 12/12/2017 (Listed): $0.027 USD
  • 12/31/2017 (Present): $0.173 USD

* 1053% Return between Vote & Present

For Round 5, January 2017, you can see the list of coins up for vote here and you can see the current number of votes here.

Round 5 of Community Coin of the Month

Out of the list of 17, I picked the following 4 which I believe have the greatest potential to being picked by the community & Binance. I’ve also listed their current market capital ranking and market capitalization in USD along with the existing top 3 exchanges they are on, in order of marketcap:

RaiBlocks ($XRB) (Rank 18) $2.9B
 * BitGrail, Mercatox, BitFlip

Experience Points ($XP) (Rank 63) $381M
 * CoinExchange, CoinsMarkets, CryptoBridge

Dragonchain ($DRGN) (Rank 68) $324M
 * Kucoin, Etherdelta, Tidex

ReddCoin ($RDD) (Rank 73) $318M
 * Bittrex, Cryptopia, YoBit

From the history of past winners, the coin which “wins” is listed during the second week of the month, between the 9th and 12th. All 4 of the coins I have listed I believe are acceptable to short-term risk over the next 14 days.

So how do I hedge?

This part is easy or as hard as you would like. I’ll offer two ways you can do this.

For the quick & dirty way (i.e. lazy):

  • Purchase equal amounts in fiat of the above four. Say, $250 USD worth each.
  • Wait until the announcement of which coin wins.
  • Hopefully one of the four coins you purchased is announced & listed and drives up in price on the exchange you purchased on.
  • Sell at a profit on the same exchange you used to purchase; Do not get greedy.
  • Wait until next month; Rinse. Repeat.

The complex way:

  • Confirm using TA for each that you’re entering into a position during a retrace between now and the first week of January.
  • Slowly accumulate positions on each coin/token before the 7th of January, to be the safe side.
  • You can balance/weigh between the four on what you’re willing to risk on each.
  • Hopefully one of the four coins you purchased is announced & listed and drives up in price on the exchange you purchased on.
  • Sell at a profit on the same exchange you used to purchase; Do not get greedy.
  • Wait until next month; Rinse. Repeat.

Worst case scenario:

One of the four coins I listed above is not picked. You can either liquidate all positions of the four coins, hopefully still at a profit or maybe at a slight loss and try again next month.

Hopefully the logic above makes sense. If you have any questions, feel free to reach out to me directly or leave a comment below.

Sincerely,
Daniel Kao

Chief Blockchain Officer & CEO
CryptoAtelier LLC
Bellevue, WA, U.S.A.

Disclaimer: This article does not constitute financial advice and should not be taken as such. — I personally do not have any open positions or previous positions on any of the coins or tokens listed above and voluntarily abstain from taking any positions for 72 hours after the publishing of this article, if any.

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