12% annual interest! BTC-based BinFi is now live! Founder: Looking back on 2019, BTC is still the best crypto asset
The overall crypto market in 2019 has passed in uncertainty. Over the past year, it has seen high rises and collapses. Bitcoin surged from $3,200 to a maximum of $13,868 in just three months, and just as everyone thought that Bitcoin would rise above 2017’s peak, Bitcoin failed to meet optimistic expectations.
However, in all uncertainty, we can observe the “head effect” of cryptocurrencies and its Evergrande.
This year’s market is different from 2017’s. Bitcoin’s market share has always remained high, mostly at 60%, and sometimes up to 71%.
When Bitcoin soared in the past, altcoins typically had amazing gains. However this has not been the case this year. Even the top ten cryptocurrencies by market capitalization have fallen back to their original positions after their peak in July. The current price of Bitcoin is $7,188, and in terms of annual ROI, it still has a high return of 93%.
Dr. Chaoming Cho, the founder and CEO of Bincentive, said that Bitcoin’s head effect is becoming more and more apparent, whether it is the result of Bitcoin’s market share or the industry’s development in the past year.
“In the past year, it is not difficult to find that the subject of traditional financial institutions’ admission is obviously Bitcoin. The most obvious example is Fidelity’s investment in a “custodial and trading service “ announced last October for all qualified investors. Similarly, the intercontinental exchange, Bakkt, also launched a futures service for physical delivery of Bitcoin, while ICE obtained a license for escrow services. These are the major trends this year.” Dr. Chaoming Cho said.
Is “Bitcoin-based” a trading trend?
Long-term optimism on Bitcoin has caused traders to start adjusting to profits based on BTC.
A based currency standard means that a trader is optimistic about a certain currency in the long term, so the purpose of the transaction is to accumulate more of the currency in order to make a profit when the currency price breaks out. Different from the based crypto standard is the fiat-based standard. The profit settlement of these traders is based on fiat currency, and the transaction purpose is to accumulate profits in fiat.
Dr. Chaoming Cho of Bincentive believes in the Bitcoin-based transaction method: “For a Bitcoin believer, long-term accumulation of Bitcoin is the best way to invest. Bitcoin is like the gold of digital assets. Its function is store of value, and its special status will not be changed.”
Bullish on BTC-based standards, Bincentive launches BinFI BTC
Optimistic about Bitcoin’s potential, Dr. Chaoming Cho has announced the launch of BTC-based BinFi on January 3.
BinFi BTC is similar in concept to the previous BinFi launched in November last year. It still has high and low risk preferential allocations while meeting the core needs of lenders and borrowers in the crypto market: “collateral interest rate” and “asset investment management”. Bincentive plays the role of an intermediate matching lenders and borrowers. When there is a successful match between two parties, the borrower’s investment profit is maximized through a professional quantitative trading strategy.
In BinFi BTC, the investment strategy is divided into two investment products with opposite risk coefficients, “fixed income — The Rock”, “risk investment — The Flame”. Members may mix and match them to satisfy their risk preferences.
The Rock obtains interest by lending crypto assets. With an annualized return rate at 12%, it is currently the highest in the industry for Bitcoin lending products.
The Flame holds higher risks, and it mainly relies on borrowing funds from The Rock to invest with Bincentive’s quantitative trading strategy to earn high profits.
Dr. Chaoming Cho believes that most of the current DeFi lending services in the market are based on the stable currency USDx as the base unit, which is not practical for Bitcoin holders because they need to accumulate the amount of Bitcoins held in their hands. Whether it is to increase the number of Bitcoins through borrowing or regular purchases, and then sell them during price surges, this is the high-risk high-reward model the crypto market owes itself. Of course, the premise is that investors can bear the high volatility risk of Bitcoin and make practical asset allocations.
“In order to meet the needs of these users, we specially launched BinFi BTC. The annualized rate of return of BinFi BTC is currently the highest in the industry.”
The more well-known foreign crypto lending platforms are BlockFi, Celsus, Crypto.com, etc. Among them, the highest annualized return is Crypto.com, which is about 8%, followed by BlockFi’s 6.2%. In comparison, Bincentive’s BinFi is 12%, which is much higher than the industry standard.
The risk?
Because BinFi BTC products are heavily affected by BTC’s volatility, it is likely that the total asset amount will fall when calculated in fiat currency while earning BTC. This product is more suitable for investors who are optimistic about Bitcoin in the long run. On the other hand, given higher risks, investors are also more likely to obtain higher profits.
If you bought Bitcoins steadily every month during 2018 to 2019, the average cost was around $6,300. If you had sold at any point more than $10,000, your return rate would have been more than 58%. On the contrary, the highest annualized return in traditional DeFi only reached 14% temporarily, with unstable exchange rates.
“For Bitcoin believers, if the long-term investment is based on the accumulation of Bitcoin, priority should be given to BinFi BTC. Although the risks are greater, the long-term revenue may be multiplicative as the number of Bitcoins held on hand gradually increase. “ Dr Chaoming Cho concluded.
This article expresses an independent view of Bincentive. Bincentive is not responsible for investment profits and losses, and investors should carefully consider various investment risks.
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