🧐 The Wealth Effect of Platform Tokens and Bull Market Opportunities | Why I Buy Platform Tokens in Every Bull Market, and Who Will Lead the Next Explosive Growth?

In the cryptocurrency market, the performance of platform tokens is often closely related to the market position and strategic direction of the exchange that issues them.

After I published the article below, the most common question I received in private messages was: Will other exchanges follow the pump rhythm of BGB? Especially in the comment section regarding the Gate platform token GT, which has almost grown together with BG;

Some people believe that GT will also start explosive growth, while others think GT may not be able to break through; the opportunities in WEB3 come from market sentiment and group divergence, and different opinions represent opportunities;

Many people know that I like to buy platform tokens, and the logic behind it is simple: platform tokens have a spiral upward multiple effect in a bull market, such as the last round's BNB and this round's BGB;

And what about GT, which hasn't exerted much effort this round? Could it be the next BNB?

These are all thought-provoking topics;

http://Gate.io, as a well-established exchange for over a decade, is very impressive! Although there are constant rumors about potential issues, it has remained strong on the front line, and its low-key nature makes Gate a trading platform that many seasoned investors consider;

My first choice of platform in 2017 was Gate, so in my mind, Gate is a trading platform that, although established, still feels youthful;

Why do I say this? Gate's outstanding performance in discovering potential tokens is very youthful; among the many projects listed on the platform, many have shown strong growth trends shortly after their launch.

For example, in the Startup projects on http://Gate.io, many new tokens have achieved several times their initial value shortly after listing, which is very vibrant and energetic;

Although the market has recently corrected and Bitcoin has dropped significantly, GT has surprisingly not followed the decline, remaining very stable around 16, so I decided to conduct a detailed analysis to observe GT and compare it with BGB:

1️⃣ Basic Information about GT —

Whether a platform token is impressive depends on its empowerment;

GT is the only native platform token issued by the http://Gate.io exchange. Interestingly, GT has a setup similar to ETH, possessing on-chain PoS functionality. While ETH can generate PoS rewards, GT's on-chain native coin yield is approximately 10%;

If you hold GT and it appreciates, you can enjoy both the token's price increase and the PoS rewards, effectively getting two benefits from one; thus, in this scenario, during a bull market, people are more willing to hold GT as a HOLDer, which is the logic behind it;

A few days ago, @DtDt666 noted that in the TOP 100 ranking of price increases, GT broke through its 2021 ATH, ranking 16th, with considerable returns;

1) Basic Information:

GT has an issuance volume of 300 million tokens, but the current circulation is relatively low, only 130.8 million tokens. Gate repurchases and burns 15% of its revenue each quarter, and this burn mechanism will become the core driving force for GT's price increase as Gate grows. To be honest, this circulation combined with Gate's burn mechanism is quite impressive, leading to infinite deflation. Once the bull market's positive flywheel kicks in, scarcity will emerge.

2) Trading Volume and Price:

Recently, GT's price performance has been good, stabilizing around $16 after breaking through $15, indicating a certain level of market recognition. The trading volume is also relatively stable, with an average daily spot trading volume of about $300 million, and even higher derivative trading volume, averaging $800 million daily.

2️⃣ Comparative Analysis of GT and BGB —

Earnings Model:

GT: Primarily provides long-term, stable returns through mining rewards.

BGB: In addition to capital gains from price increases, BGB also offers short-term earning opportunities through various platform activities (such as staking, participating in new projects, etc.).

Price Trends:

GT: During the BGB pump, GT maintained a relatively stable price (around $16), showing a certain price resilience.

BGB: During the same period, BGB experienced significant price increases, doubling or more in a short time, demonstrating higher volatility and speculation.

Risk and Return:

GT: Relatively low risk, with returns stemming from the platform's stable growth and mining rewards, but price growth may be more moderate.

BGB: High risk, high return; the BGB pump shows its potential for huge short-term investment returns, but it also comes with greater market volatility risk.

In summary, both have strong wealth effects. The wealth effect of platform tokens is mainly reflected in their utility on the platform, mining rewards, and ecosystem development. The recent rise of BGB has triggered market effects, which will also transmit to GT, and I think this is a good thing.

3️⃣ Why Hold Platform Tokens in a Bull Market? —

The wealth effect of GT and its comparison with BGB:

In a bull market, platform tokens are the first choice; I currently only hold BNB, BGB, and GT;

I value BNB more for its stability, while BGB and GT have more growth potential and explosive effects under new mechanisms and platform development;

The logic is simple: small market cap, high growth potential, strong empowerment, and bull market effects; when these come together, good platform tokens will definitely have upward effects in a bull market; it's just a matter of time. The certain things are the points that should be focused on;

Regarding GT, I just calculated an account,

If you hold 1000 GT on New Year's Day 2024:

Principal: At that time, the coin price is $4.7, 1000 * 4.7 = $4700;

1) Price increase earnings ($16 - $4.7) * 1000 = $11300;

2) Participating in GT mining and Startup Mining, 12% annualized, earnings 1000 * 16 * 12% = $1920;

3) Participating in GT holding Startup new coin airdrops, 16% annualized, earnings 1000 * 16 * 16% = $2560;

Total earnings: $11300 + $1920 + $2560 = $15780

Total principal earnings: $4700 + $15780 = $20480

So, in a bull market, why hold platform tokens? It's clear! Additionally, from the perspectives of market capitalization, price, and ecosystem expansion, GT possesses early characteristics similar to BNB and the explosiveness of BGB, offering high cost-effectiveness;

Conclusion —

Finally, I want to say that the market is ever-changing, and everyone should respect the rules and risks!

The wealth effect of platform tokens is more reflected in their market speculation and rapid price increases. The higher the bull market peaks, the more frequently new tokens are listed, and the stronger the profit effect; platform tokens, accompanied by multiple returns, will definitely grow quickly;

However, once the tide recedes, platform tokens may also be the first to be affected, and the decline process will also be accompanied by significant pain; therefore, they are more suitable for investors willing to bear high risks for high returns.

Platform tokens are definitely good targets in a bull market, but more importantly, you must also clearly know when to enter the market and when to take profits!

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