500 million US dollars fled, the currency price fell by 80%, and BDP finally became an abandoned child of capital?
Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc), author: longcrypto, published with permission.
Editor's Note: This article comes from
Babbitt Information (ID: bitcoin8btc)
Babbitt Information (ID: bitcoin8btc)
, author: longcrypto, published with permission.
Just yesterday, BDP, which was born out of nowhere, became the star of the entire currency circle, and its TVL once exceeded 6.6 billion US dollars, becoming the first DeFi project in the history of the currency circle to become the king of the line. Today, the funds locked in BDP began to flee, and the currency price fell by more than 80% from its peak ten days ago.
Some investors began to drum in their hearts: Who is selling such precious "value coins"? Is BDP really a game of hunting and killing retail investors with big funds?
On the evening of March 7, as BDP opened for trading on the Matcha Exchange, the price of BDP rushed to a high of $15, which has also become the highest price of BDP so far. Since then, although the TVL of BDP has continued to soar, the currency price has not synchronized, but has fallen all the way. The current price is $2.5, which is 80% lower than the highest price.
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Yesterday afternoon, BDP’s lock-up funds reached a peak of more than 6.6 billion US dollars. This afternoon, only $6.1 billion of BDP’s locked funds remained. You know, the market in the currency circle is very good today, which means that some funds have begun to flee.
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(Image source: bigdataprotocol)
We compared the locked tokens of the 12 fund pools of BDP one by one, and it is true. Among them, WETH, WBTC, and USDC funds have obviously fled, all exceeding US$100 million. Only YFI, AAVE, and UNI are in the inflow state, but the amount is relatively small, only at the million-dollar level.
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(The data is taken from March 9, and the data source comes from coingecko and bigdataprotocol)
Behind the flight of funds is a sharp drop in yields. In the previous article, the lowest rate of return among BDP lock-up tokens was 43%, and the highest rate exceeded 4 digits, which was 1463%. Today, the highest yield is only 601%, and the lowest is only 17%. Yields have generally halved.
Is there hope for the BDP?
According to the BDP token distribution plan, 24 million tokens were released to the market through the "free money" model in the first 6 days. The reason why it is said to be free money is because the 24 million tokens of BDP are all dug out by pledging a single currency. As long as the user strictly implements the strategy of "mining, withdrawing and selling", there is almost no loss in participating in mining (except for handling fees).
For the funds involved in mining, what they earn is earned. Although the price of the currency has fallen sharply in the past two days, there is no damage compared to the principal, and it is nothing more than earning less.
Now we are worried about: after the release of 24 million tokens, whether new tokens will flow to the market, whether the currency price will be stable, and what new methods will be launched by the project to retain funds after the initial supply ends.
According to official documents, the total amount of BDP is 80 million, of which:
1) 30%, that is, 24 million are delivered within the first 6 days;
2) 35%, that is, 28 million for future pledge or liquidity provider rewards, locked for at least 2 months;
3) 25%, that is, 20 million are used as ecosystem reserves (in fact, they are reserved by the team). These tokens will be released from March 13 and will be released within 9 months.
4) 10%, that is, 8 million are reserved for the team and consultants. This part of tokens will be released from March 13 and will be released within 9 months.
At the same time, according to the document, no more BDP will flow to the market after 6 days of starting mining and within 2 months thereafter, that is to say, the number of BDP that can be circulated during this period is only 24 million.
BDP started mining in the early morning of March 7th, and it is expected to end mining until March 12th. During this period, BDP was faced with selling pressure, and receiving orders in the secondary market was purely to send money to the "digging, raising and selling" party. If there is no strict evaluation of the project, it is not recommended to accept orders. After March 12th, it will be a watershed to test whether BDP is an air currency or a value currency.
