Crypto updates

Another 3 weeks has passed since my last crypto post, 3 weeks seems to be the sweet spot for me.

First, I have sold my kucoin tokens and did not took part in any IEO, as i feel that buying it’s native token just for participating in IEOs, which is itself, few and far between, is not really a good decision, especially when i preferred FTX exchange more than the others. The creation of Kucoin account was because of Cakedefi, which i have stopped using too. So far, it turns out to be a good decision, as I have deployed it for some farming with good returns.

I am now almost 99.9% invested in the Avalanche network, getting some good returns on farming and participating in some IDO through Avalaunch.

My losses has narrowed down from -35% to -7%, which is pretty impressive in 3 weeks, it was positive for a short while when Avax went up to $9x last week, but the returns are tied solely to the price of Avax. Avax goes up, i go up, Avax goes down, i go down too. I am happy collecting interest in good farms, while the price goes up and down.

Next, this post is more about my review of Avalaunch, the main launchpad for Avax network.

This is one of the launchpad with no tier system, highly recommended for people who are just starting their journey into IDO, as long as you stake XAVA, you will be able to participate in every of their IDO.

Let’s look at the ATH(all time high) ROI of all their past IDOs, it is pretty impressive.

I came in at Islander, so i did not get to experience the crazy ROI of Crabada and Platypus, which went over 100x.

So far has it been profitable for me? Yes and no, while the All Time High ROI paints a rosy picture, but all is not that rosy, when you really participated in it.

First, Allocation size.
Heroes Chained: 0.07AVAX / 55.68XAVA = $5.65/$482= 1.2% allocation

Heroes of NFT: 0.17AVAX / 80.07 XAVA = $14.22/$504= 2.8% allocation

Defiato: 0.1AVAX / 80.2 XAVA = $8.74/$473 =1.8% allocation

At about 2% average allocation size based on my amount staked, assuming a 10x ROI per project, which is 20% profit based on my staking amount, i would need to participate in 5 projects to get a 1x of my staking amount, which is still good right?

Next transaction fees, the main killer.

Heroes Chained fees, 66.7% down for participating fees due to small size allocation.
Heroes of NFT fees, 5.2% down for participating fees due to small size allocation.
Defiato fees, 18.9% down for participating fees due to small size allocation.

To be fair, there are triple transactions going on for this transaction fees.

  1. Refund of 1 AVAX previously paid for registration
  2. The main allocation fees
  3. Compound of any Earned XAVA into staked XAVA.

But wait, this is not the only transaction required for the IDO.

Heroes Chained vesting unlocked.

The small allocation size is already in the negative due to the transaction fees, the multiple unlock will continue to add up the losses, for the remaining 13.34%, everytime i unlock, i should be looking at a lost, as the transaction cost may be more than $0.79. Though the price increase of Hec will make up for it. Hec is up 7.5x from it’s IDO price.

I hope I have presented my side of the story clear enough to show that, there are many aspects to the implementation of a good launchpad, and many hidden aspects that will affect your returns.

Islander IDO was given free to all stakers, which must be good right? On and off there are free airdrops too for the leftovers. But if you look closely to the value claimed, most of the time, the transaction fees are not worth it, which is sad indeed. This is something beyond anyone control, and more thinking are needed for all these implemantations.

Last but not least, one of the most important point I wish to highlight is the registration fees of 1 AVAX. When you registered and claimed your tokens, the 1 AVAX will be refunded together. So, after you have registered for your first IDO with Avalaunch and paid the 1 AVAX, you are excited and looking forward to your first launch, at Singapore timing, the claiming starts at 2300 local time, you have 15 hrs to do the claiming, which is reasonable. As long as you do it before 1400 the next day, you are good. But then you had a busy morning, you woke up and forgot about it, then the usual morning rush, during lunch break at 1200/1300, you had this lingering thought that you have something important to do, but you just can’t remember, nevermind, lunch first. During the second half of the day, you suddenly remembered, and you logged in to Avalaunch, you missed the deadline for the claiming. Next time then, unlucky me. Yes, unlucky you! The 1 AVAX is non-refundable if you do not claim during the staking round!

It is in the T&C when you register for the launch, and there was no fraud involved, many companies do that, many launchpad do that too. But i feel that this is a bad practice, no right no wrong.

The different length in red and blue per project shows the number of deposit forfeited. For 500 people that forgotten about it, or decided not to proceed, that is 500 AVAX, at a price of 80, that is $40,000 USD.

After 4 projects and counting, my profit is not even close to 1 AVAX, maybe not even 0.1 AVAX, due to my small portion, or am I at a loss? One forgotten claim, and you will be in the red for a long time.

To conclude, if you are interested in trying Avalaunch, here is a really useful sample size created by the community. To really maximise the ROI of each project, ideally you should be looking at least 250-500 staked XAVA, that will be about USD$1600 to $3200.

While there are no tiers requirements, you still need to have a certain amount of capital staked to maximise the ROI.

I am still thankful to Avalaunch for letting me experienced a seamless IDO process without any tier structure, while there are many improvements to be desired, this platform is clearly not suitable for my limited capital.

Maybe I overstayed, but i am looking forward to Lost Worlds IDO in March, which is a project that features the MBS in Singapore. With all my locked up portion and the 15 days cooldown after each IDO, April then?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s