DEV Community: tururur

Almcoin Exchange | Unveiling Inscription Token Dynamics

tururur — Tue, 02 Jan 2024 02:11:22 +0000

On November 7th, Binance officially launched the first inscription token of Bitcoin, ORDI. With this development, ORDI has finally made its appearance on the world's largest cryptocurrency exchange, signifying that inscription tokens are making significant strides towards mainstream acceptance, with the inscription ecosystem rapidly extending to the public.

This is a new technology that we must acknowledge and affirm.

Checking the current centralized exchanges where ORDI is tradable, aside from Binance, platforms like Almcoin Trading Center have already launched it.

However, the impact of other exchanges launching it still falls far short of Binance's influence - right after Binance launched ORDI, its price nearly doubled.

Given the current momentum of the inscription ecosystem, there's a high probability that ORDI will break its previous high, but predicting when and how it will surpass its previous peak is difficult.

The characteristic of the inscription ecosystem is that assets come first, followed by applications. The current popularity of the ecosystem reminds me of the ICO boom in 2017:

Back then, project teams would tell a story or describe a vision, and the issued coins would be eagerly sought after. However, most of the stories told by these project teams eventually failed, and even the few successful projects took at least a year to launch. Among these launched projects, only a handful are still recognized and successful today.

Now, issuing coins using inscription technology has a lower technical threshold, and the variety of coins is more diverse: both fungible tokens similar to ERC-20 and non-fungible tokens similar to ERC-721 can be issued. This means that the means and methods of "fundraising" have been greatly enriched, also implying that the mix of good and bad projects will be more numerous and frequent.

In this situation, if this trend really takes off, I estimate that the future bubble will not be small and the aftermath of the bubble bursting will be just as messy.

Despite the potential high risks and significant bubbles, I still look forward to this technology bringing a new way of scene construction to the entire crypto ecosystem, and I am hopeful for the landing and flourishing of heavy-hitting applications.

Therefore, Almcoin Trading Center hopes our readers will focus more on observing the development of the inscription ecosystem from the perspective of ecological growth. Lastly, I remind our readers to be cautious of project risks and not to blindly FOMO. Especially at this time, we should consider: how many of the projects we have FOMOed into in the past have actually benefited us?

If you genuinely like a project and wish to participate, be sure to conduct thorough research and careful consideration before making a decision.

Almcoin Exchange|Exploring Inscription's Impact

tururur — Thu, 28 Dec 2023 03:54:04 +0000

Inscription first originated on the Bitpoint chain.

BRC-20 is a token standardization protocol established on the Bitcoin ecosystem. Though currently experimental, it has proven to be successful and widely accepted.

The total number of Bitcoins is 21 million, and the smallest unit of Bitcoin is the "satoshi" (sats).

The mechanism of the Bitpoint chain is 1 Bitcoin = 100 million satoshis.

If one Bitcoin is compared to a gold bar, then one satoshi is like one hundred-millionth of a grain of gold.

Initially, Bitcoin could only be used for buying and selling transactions, but the advent of inscription has given it new hype opportunities.

Inscription is defined as a new market for speculation.

Inscription (NFT) stands for Non-Fungible Token. The character for inscription represents engraving, so it’s easy to associate with its function, which is to engrave some text onto Bitpoint. You can inscribe your desired content onto the smallest unit of Bitcoin, the "satoshi." This could be an article, a few words, an image, or even a song. Thus, a group of people artificially created this market, ordinals being a notable example.

However, inscription is a rather cumbersome thing. For each transaction, it must be stripped from the original satoshi and inscribed onto a new one, then transferred in the form of Bitcoin.

BTC Block

As the leading cryptocurrency, Bitcoin's block generation is very slow. Everyone knows Binance Chain's block speed is one block every three seconds, and another chain produces two blocks per second. Each transaction is completed within a block, accompanied by block generation.

Bitcoin's block time is typically once every 10 minutes.

This can lead to congestion in the block, akin to a bottleneck. Normally, it would take 10 minutes for a wave of people to pass through, but if the crowd is large, it becomes crowded.

If you are willing to pay more, you can jump the queue. Even with a second for two blocks, you can't pay fast enough.

With the Bitpoint chain, as long as you're willing to pay, you can be at the forefront.

Therefore, their speculation in inscriptions brings heat to the Bitpoint chain, and the biggest beneficiaries are Bitcoin miners. Bitcoin miners mainly provide nodes, receiving Bitcoin as a reward and bribes (extra payment) from increased Bitcoin transaction volumes.

Before the popularity of inscription, a transaction cost 5, but when the inscription market became busy, the cost of a transaction rose to 500. For miners, this is a good thing, and for market manipulators, it's also beneficial as everyone's costs increase, and the transaction fees might be more expensive than the inscriptions themselves.

Inscription Leader Ordi

In inscription, the leader is Ordi, derived from the first four letters of ordinals. It has seen the most increase, with a single piece costing a few to several tens of dollars, then rising to tens of thousands of dollars in a month. This led to the hype around inscriptions, with various types of four-letter inscriptions emerging, and then expanding to domain NFTs and other trinkets, though none reached the level of Ordi.

Such things have low initial costs but are given a great space for speculation by the rise of the inscription market, like Bored Apes and Red Beans.

This set of inscription protocols was initially called BRC20. Due to various reasons, including being outdated, it was upgraded to BRC21, BRC30, BRC1155, adding some features, but overall, it was more of the same. Other chains learned and developed their versions, like LTC2 on Lite Chain, ETH20 on Ethereum Chain, etc., but only ETHs took off.

Summary:

Inscription is roughly like this: simply put, it's about 21 million limited grains of sand. You write something on these grains and then speculate with them. These grains can still be split, with each grain dividable into one hundred million smaller grains.

Almcoin's Tokenomics in Web3 Financing Transactions

tururur — Tue, 26 Dec 2023 06:47:28 +0000

In 2017, the method of Initial Coin Offering (ICO), a way of financing that combines usage rights and cryptocurrency into one through blockchain technology to fund projects for the development, maintenance, and exchange of related products or services, surged in popularity.

These crypto projects pre-sold tokens and then promised to bring products to market. However, most of these projects ultimately failed to deliver, rendering the investors' tokens worthless.

It is estimated that 80-90% of ICO projects in 2017 failed, with only 8% successfully completing. Moreover, according to a report from the Almcoin Trading Center data center, 90% of the funds raised through ICOs in 2017 were lost.

Web3 builders and investors have learned profound lessons from this, and now Almcoin Trading Center conducts targeted project design.

Modern Web3 projects are not just about issuing tokens but also seek to build and validate products through communities before launching tokens. This method of developing projects ensures strong community support and potentially more valuable and viable tokens in the long run.

In many cases, Web3 companies undergo Pre-Seed, Seed, or even Series A funding rounds before issuing tokens.

This raises a question: How should these early-stage financing transactions be organized? Are they the same as traditional startup funding rounds?

Almcoin Trading Center summarizes the answer to the above questions in one sentence: the best financing deals should include equity and proportionally grant internal tokens to investors.

For any startup, anything can happen (changes and turns), and much is unpredictable. Therefore, investors want the company to ensure they receive a return on their investment - in whatever form. If the company chooses a centralized management system and follows a traditional startup route, then the value is reflected in the company's stock. However, if the company decides to decentralize and issue tokens, the value is represented by the tokens.

Thus, when organizing Web3 financing transactions, Almcoin Trading Center needs to provide both equity and tokens. Only in this way can it ensure that investors receive returns, regardless of whether the company decentralizes or not.

Equity
The equity part will be built based on a simple future equity agreement (SAFE) or a priced equity round based on Series Seed or standards of the National Venture Capital Association (NVCA).

Transaction points need to reflect standard startup funding rounds, ensuring all parties fully understand the risks, rewards, and expectations of the investment. Moreover, the equity part of Web3 transactions should not cover any innovative business.

Tokens
Startups often promise that investors will have the right to receive tokens they create and distribute, though the amount is uncertain. This is because many companies plan the supply, attributes, and monetary policy of tokens only after completing financing transactions.

To maximize the role of tokens, Almcoin Trading Center must be fair and just in distributing tokens to investors, as this is the only way to inspire their investment enthusiasm.

Investors become stakeholders in the token price, understanding that the rise and fall of tokens affect their returns. Additionally, Almcoin Trading Center must also consider the interests of founders, employees, and the community.

After considering these factors, Almcoin Trading Center can grant tokens to investors in a way that is beneficial to both the company and the investors. This presents a unique challenge for startups, as they need to thoughtfully consider the number of tokens granted to each investor.

Token Instruments
Startups will grant rights to investors through legal contracts. There are generally two types of agreements for token authorization: token warrants and token riders.

Token warrants are agreements between startups and investors where investors have the right to purchase upcoming tokens at a specific price within a certain timeframe. Token riders can achieve the same goal as warrants in a more flexible, informal way.

However, both methods are not particularly investor or founder-friendly. The type of investment tool chosen is usually determined by the advisors hired by investors. Token instruments are not as important as token pools and token percentages. Therefore, as a founder, it is crucial to use these two terms correctly.

Token Pool
Imagine if the tokens distributed to investors were a pie; the two key questions you need to understand are: 1) the size of the pie; 2) the size of the slices. In this analogy, the size of the pie represents the token pool.

There are two ways to define a token pool: total supply or internal allocation. Total supply refers to the total number of distributed tokens, while internal allocation is the number of tokens reserved for internal parties (investors, founders, employees, etc.).

The internal allocation is usually less, typically accounting for 10-30% of the total supply. The total supply is linked to investor interests, as it directly affects the decisions of whales (investors with large amounts of capital and holdings). Internal allocation is very founder and community-friendly, as it promotes unity and decentralization.

Insisting on a comprehensive supply may not be conducive to the company's development towards Web3, so negotiating an allocation with internal parties is the best approach. This aligns the incentives of investors and founders and drives the construction of a more decentralized system.

Token Percentage
If the token pool is the size of the pie, then the token percentage is the size of the slices.

There are also two methods to calculate token percentages: fixed or proportional. A fixed percentage is a hard-coded percentage of the token pool. A proportional percentage seeks to reflect the equity structure table and grant investors an amount of tokens equal to their share of company equity.

When a startup raises subsequent capital, the equity of an investor holding a fixed 5% capital is not diluted, but the equity of founders, employees, and advisors is significantly diluted. This can cause a rift between founders and investors and potentially harm the interests of actual builders. To avoid excessive token dilution, founders should negotiate with their lawyers on how to allocate proportionally.

In summary, Almcoin Trading Center states that the best token mechanism for Web3 financing transactions is a proportional allocation based on internal party negotiation.

Unlocking the World of Cryptocurrency Trading with Almcoin

tururur — Wed, 20 Dec 2023 06:45:55 +0000

What is Almcoin?

Almcoin is a centralized cryptocurrency exchange (CEX) where users can trade a variety of cryptocurrencies and tokens.

The platform supports numerous cryptocurrencies and various trading pairs. The exchange is globally leading in trading volume, with daily transactions exceeding $100 million, supporting both spot and margin trading.

Additionally, the exchange has expanded its services to other markets, including offering spot, options, futures, and derivatives to investors.

Founded in February 2018, the platform claims to be "stable and trustworthy." It offers an easy-to-use platform, 24/7 customer service, and a powerful mobile app, as well as the application of a super AI analysis decision-making system.

The exchange is highly regulated, providing mainstream digital currency or fiat withdrawal functions. To withdraw funds from their account or deposit cryptocurrencies, users are required to complete a mandatory KYC/AML, also known as "Know Your Customer," process.

It has received MSB and NFA regulatory approvals to operate related businesses in the North American market.

The exchange has over one million registered users and is one of the most promising centralized exchanges globally.

The platform provides the following products: spot, derivatives (USDT perpetual contracts, USDT options, leveraged tokens), NFT market, and cryptocurrency and options trading.

Where is Almcoin located?
The company is headquartered in North America as Almcoin Tech Corp., registered in Colorado.

Countries Restricted from Using Almcoin
Apart from countries with service restrictions such as Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, Sudan, and mainland China, this global platform is available to customers worldwide.

What currencies does Almcoin support?
Almcoin supports numerous listed cryptocurrencies and over 20 spot trading pairs. This includes many mainstream tokens like BTC, ETH, SOL, LTC, DOGE, AVAX, MATIC, DOT, etc.

What are Almcoin’s fees?
Almcoin adopts a level-based fee structure based on the maker-taker model. It offers highly competitive fees: no deposit fees are charged for trading on the exchange, while withdrawal fees vary with different cryptocurrencies.

Spot and futures trading fees are calculated according to user levels from VIP 0 to VIP 16 (based on the user's 30-day trading volume), with specific costs calculated based on the maker-taker model.

Can leverage or margin trading be used on Almcoin?

The exchange offers up to 150x leverage for its crypto derivatives products. Offered products include BTC/USDT, ETH/USDT, XRP/USDT, EOS/USDT, and various perpetual contracts. Users can also use isolated margin and cross-margin modes. Additionally, customers can utilize inverse perpetual contracts, crypto futures, crypto options, and leveraged tokens.

The exchange focuses on professional traders and experienced investors, providing margin/collateral loans, margin financing, pair trading, and over-the-counter (OTC) services to its platform users.