IDO goes online 10 times, is SUIP worth buying now?

In the bear market where retail investors generally lack investment opportunities, the seemingly rough meme currency and BRC-20, with low cost, low threshold and fairer Participation methods have been sought after and become the investment target of retail investors in the near future, creating a new round of wealth effect. In addition, IDO, the decentralized financing model invented in the previous round, has also returned again. Its relatively fair and transparent opportunities and deterministic investment returns have become a piece of steamed bun that retail investors are vying for.

This can be seen from the popularity of investor participation in the IDO recently launched by DEX Cetus based on Sui and Aptos. The Cetus IDO launched on the 10th attracted a total of 108 million SUIs to participate, exceeding 950% of the total.

There are two reasons why Cetus is enthusiastically sought after: on the one hand, the solid fundamentals of the project itself and the original product functions make it Huge potential to become the leader in the SUI ecological track. On the other hand, in the current situation where the primary market is preempted by institutions at high valuations and retail investors lack new opportunities, the transparency and fairness of the IDO model itself can bring certainty to retail investors. return.

IDO usually opens a small amount of investment quota to the public at a lower price, because this stage is still in the token ownership lock-up period , so there is almost no great selling pressure, which means that as long as you grab the IDO investment quota of the more popular project side, you can get high returns, and the prerequisite for participation is to hold ecological currency or platform currency And stake and lock on the platform.

Taking Cetus as an example, the token sales price of this round of IDO on May 10 is 0.04 SUI, so far, Cetus has the highest The price reached 0.14 US dollars, and the current price is 0.11 US dollars. If IDO investors can successfully sell at the peak, they can get more than 2 times the return. If they sell at the current market price, they can get about 1.3 times the return on investment.

It can be said that in the current investment environment where market liquidity is almost dry, if you can grab the quota of an IDO project, it will be It is a business that is sure to make a profit without losing money. Of course, it must meet at least two prerequisites: the project is high-quality and popular.

If we start from the above two indicators, then the SuiPad, a tier 1 project of the ecological track Sui that brings together the market's aspirations, will be A good investment target. As the officially designated IDO Launchpad platform in the Sui ecosystem, it will inevitably play an important role in the future with the development of the Sui ecosystem.

Historical experience tells us that at the highlight moment of each mainstream public chain, participating in the IDO project launched on its own unique Launchpad can Obtaining excess investment returns, especially in a bull market, where returns of up to tens or even hundreds of times allow investors to make a lot of money, but is the case in a bull market applicable to a bear market? If IDO participating in Launchpad cannot guarantee 100% no loss, what risks should be paid attention to when investing? What are the key indicators to refer to when participating in an IDO initiated by Launchpad? Judging from these indicators, is SuiPad still an underlying asset worth investing in?

Introduction to IDO

IDO (Initial Decentralized Offering) refers to the initial public offering of project tokens. The platform for launching IDO is called Launchpad, and almost every public chain has its own one or more Launchpads.

Usually a project needs start-up funds in the early stage, and the Launchpad platform provides investment opportunities to early investors through the IDO of the project party. Usually, they will be sold to community users at a lower price. At this time, due to the limitation of the vesting period, tokens often have a lower market value. Get a decent return on investment. As a matchmaking platform connecting "encrypted projects in the early stage" and "retail investors", the IDO platform allows more start-up projects to obtain financial support in a decentralized way, and at the same time provides investors with more opportunities to participate in early-stage projects Opportunity.

As a win-win model, retail investors can obtain high multiple returns. For investors, as long as they can get Maximize the IDO investment amount, and there is a high possibility of amazing excess returns, at least during the first TGE (Token Generation Event). For the project side, it can be relied on to attract early start-up funds, and of course, more importantly, to attract the attention of investors with high-return investment opportunities with a small number of seats, thereby creating market enthusiasm.

However, investment strategies that work in a bull market may not work in a bear market, and participating in IDOs does not always earn huge sums So, how to evaluate the investment opportunity of IDO in the bear market?

Investment Opportunities in IDO

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When evaluating the return on investment of Launchpad, you can usually look at two key indicators: "historical highest average return rate" and "current average return on investment".

CryptoRank data shows that in the past year, the average historical high (ATH) return on investment of each IDO platform has achieved high Returns, up to 12 times.

ATH ROI refers to the highest return on investment, which is calculated based on the peak price of the token. The above figure shows that the average highest return on investment on the BSCPad platform is as high as 12 times, which means that a certain person participating in the platform If you invest $100 in token investment for a first-time project, you will earn $1,200.

This means that if investors can grab a small amount of IDO participation quota and sell it within a short period of time when the IDO occurs (If it is not always possible to sell at the price peak), there is a high probability that you can get a considerable return.

Another function of IDO is price discovery, which is open to a small number of investors with a lower selling price and a high return on investment The amount of investment can bring a lot of attention to the project side. In fact, this is trying to create a strong market demand. If it is operated properly, the market demand is far greater than the supply, and the final price is reflected in the period after IDO The currency price reached its peak within a certain period of time.

The data shows that most of the average all-time high (ATH) return on investment (ROI) occurred in the short period after the IDO , taking the project Bloktopia launched on Seedify.fund as an example, its public offering price is US$0.00025, and the highest ROI return is 698 times. According to the historical price of coingecko, since its token BLOK was launched on October 5, 2021 through IDO , the price of the token has been showing a rapid upward trend until it reaches a price peak on November 1, 2021. In other words, the token price peak occurred within a month after the IDO.

And another project called Humans.ai launched the IDO of its token HEART on Polkastarter on December 9, 2021, with an offering price of $0.015. The price of the token began to climb after the IDO, And on December 27, it reached the highest price of 0.263 in history. According to the data, the historical high return on investment of the token HEART is 18 times, and the current return on investment is 1.1 times. This token price peak also occurred within a month of the IDO.

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Looking at historical data, almost all IDO-launched token prices follow such a trend, that is, they reach historical peaks some time after IDO. Considering the above price trend, we believe that participating in IDO is very suitable for short-term investment, that is, selling within a short period of time after IDO to obtain a stable return on investment.

However, average all-time high (ATH) return on investment (ROI) is not the only measure of investment efficiency financial indicator. While it looks like almost all IDO platforms have a high average all-time high (ATH) ROI, that doesn’t mean investors always make a profit. The chart below shows the current ROI performance of various Launchpads over the past 1 year, where most (if not all) platforms have a negative current ROI.

Data source: cryptorank, the current ROI is the real-time return on investment calculated based on the currency price of the current project party;

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Looking at the top 10 Launchpads by ATH ROI, 8 have an average current ROI below -31%, which means that if you participate in all IDO transactions on these platforms and by today Has been held, the loss will exceed 31%.

This is because the return on investment is often related to two factors: one is the development potential of the project itself, and the other is the bear market prices have shrunk.

This means that if you plan to hold the tokens of the project for a long time, you not only need to consider the fundamentals of the project and the token mechanism ( Only in this way can we consider whether it should be held for a long time from the perspective of value investment), and macro factors must be considered. Otherwise, even if it is a high-quality project, there may be a tragedy where people sit at home, disaster comes from the sky, and wake up overnight.

Is SuiPad a good investment target?

As the first IDO Launchpad project officially recognized by the Sui public chain, SuiPad is responsible for the connection ecology The middleman role between new projects and early investors, its goal is to select the best new projects in Sui blockchain for users through unique planning process and industry access standards, and at the same time raise funds for early projects.

In the current crypto bear market, even high-quality projects cannot avoid losses. In this regard, SuiPad has made improvements in product functions, adding an optional insurance mechanism for investors to reduce the investment risk of IDO participants. On the other hand, as the gatekeeper of high-quality projects in the Sui ecosystem, the native token of SuiPad must With the increase in the number of IDO launches on the platform in the future, more utility will be obtained, and more people will hold and lock it. SUIP tokens will also continue to capture value in the process.

Bears friendly insurance mechanism

Although the returns of IDOs participating in Launchpad listings seem to be quite good, it is not 100% risk-free.

Usually, when the launchpad activities of each exchange are launched, the currency price will fluctuate As far as past experience is concerned, only a small number of cases will break. If you want to make a profit, you must ensure that the price of the new currency when it is listed is higher than the subscription price, so once the listing price is lower than the subscription price, you will suffer a loss, that is, break the offer.

In the current bear market, the performance of the encryption market is not as good as before, in order to solve this problem , to reduce investment risk, SuiPad has designed an insurance mechanism called "SuiPad Shield" to protect the principal of users .

That is to say, when users participate in the IDO launched by SuiPad, they can choose to increase the investment funds ( Note that 15% of the winning amount) is purchased for insurance, which will then be sent to the Suipad Shield pool to compensate for any potential loss of the user's principal within the next 7 days. On the 7th day after the IDO launch, if the average maximum price is lower than the IDO price, the SuiPad Shield pool will make up the difference to the user, so the user's principal is protected.

Review and evaluate projects in the form of a reality show

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As the officially designated IDO Launchpad of the Sui Ecology, SuiPad acts as the gatekeeper of the ecology, that is, through due diligence on the project parties, it screens out potential High-quality projects for investors to invest in.

Interestingly, SuiPad made the review process public, using a reality show The form of the program is publicly presented to the audience. Specifically, the founder of the project will make a project pitch to the jury called Web3 Shark Tank (Web3 Shark Tank) through this program, and the "Shark" composed of 6 professional VCs The project party will be evaluated from the perspectives of product advantages and business models, and then vote to decide whether to invest.

Before the program starts, the project party must give the exact amount and investment amount raised, if If the amount raised by the project party from Shark is lower than this amount, it means that the fundraising failed and the amount raised is 0. That is to say, after the promotion is completed, the investment amount given by one or more shark judges must exceed the amount initially set by the project party. If the minimum amount is not reached, all shark invitations will be invalid.

All the fighting process is open to the audience in the form of live broadcast, so it has a certain educational significance , by watching the reality show, small and medium-sized retail participants can fully and objectively understand the real situation of the project, and eliminate some misunderstandings and prejudices caused by the opacity of most current projects in AMA and other publicity activities.

SuiPad Token Utility

Generally speaking, the operating logic of a typical Launchpad is as follows: users purchase Launchpad's native tokens and stake them on the platform for a certain period of time. In return, the stakers can get the investment quota of the party that initiated the IDO project on the platform. Each Launchpad has its own specific rating system for distributing token sale credits among stakeholders. Generally speaking, the more tokens you stake, the more IDO allocations you get.

Like most Launchpads, the main utility of SuiPad’s native token SUIP is mainly for evaluating users Loyalty, the user's loyalty level is determined based on the number of pledges of the platform token SUIP and the weight of the pledge time, so as to screen out different levels of member access rights.

That is to say, to obtain a specific grade qualification, the user must pledge the corresponding amount on SuiPad and SUIP tokens for a specific duration. The more SUIP the user mortgages, the higher the grade obtained, and the greater the probability of winning the lottery for the user to participate in the project IDO on the platform to obtain the allocated amount. It is worth noting that there will be a 15-day cool-down period for the tokens after the pledge.

The higher the membership level of SuiPad, the greater the opportunity to obtain the investment quota of scarce projects, and A higher membership level is positively correlated with the number of SUIP tokens and the pledge time. That is to say, the larger the number of SUIP tokens held, the longer the pledge time, the higher the level obtained. The greater the probability.

SuiPad's There are 6 levels of membership mechanism

The time weighting rule of the SuiPad membership mechanism is equivalent to changing the multiple with the pledge time

In an environment where the overall market is not optimistic, Sui has attracted the most market attention with its solid fundamentals and popular ecological projects. From the perspective of the number of IDO participants and the amount of financing (estimated), Sui's future ecological The possibility of a project with a high liquid market value is not low. As the only officially designated IDO Launchpad platform in the Sui ecology, SuiPad has the life-and-death power of future currency listing projects in the ecology, and it is also the only entrance for retail investors to invest in Sui eco-projects at a lower cost. The continuous emergence of highly popular ecological projects may push up the market demand for SUIP tokens again and again. Plus, its time-weighted membership tiers mean lower selling pressure.

SuiPad route The picture shows that SuiPad will launch 20 projects in the second, third and fourth quarters of this year

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Economic model and upside potential of SUIP

According to the Token Economic Model, SuiPad’s platform token SUIP supply is 100 million pieces, and the initial circulation is 20 million pieces, of which 20 million are liquidity supply. The market value is US$1.03 million, of which US$500,000 is liquidity supply. The private sale price is $0.035, and the public sale price is $0.05.

Judging from the current market performance of SUIP, investors participating in IDO can obtain the highest return of 9.98 times, and the current return is 4.41 times.

Based on the current market value, is there room for SUIP to rise? Below we compare the current market value and maximum market value of several IDO platforms that also rely on ecology to estimate how much room for SUIP tokens to rise.

Data shows that the current market value of Polkastarter (token POLS) is 35.44 million US dollars, the highest market value The current market value of Avalaunch (token XAVA) is 10 million US dollars, and the highest market value is 360 million US dollars. The current market value of Seedify.fund (token SFUND) is 49.8 million US dollars, and the highest market value is 330 million US dollars. The highest market value of DAO Maker (Token DAO) is 420 million US dollars, and the current market value is 240 million US dollars.

It is worth noting that, unlike other IDO platforms, DAO Maker uses a membership mechanism that is There is no point system for pledged tokens. Judging from the price history of the platform token DAO, the historical price of the token has fluctuated greatly.

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Based on the current supply of 20,696,000 SUIP tokens and the market price of 0.2197, it can be calculated that the current market value of SUIP tokens is 4.35 million US dollars, which is comparable to that of several other similar IDO platforms on the market Comparison of the current market value (Among them, the current market value of Polkastarter is 35.44 million US dollars, the current market value of Avalaunch is 10 million US dollars, the current market value of Seedify.fund is 49.8 million US dollars, and the current market value of DAO Maker is 240 million US dollars), we believe that SuiPad as a SUI As a leader in the ecological track, the price of its native token SUIP still has a certain room for growth.

However, although SuiPad is the only IDO Launchpad platform officially designated by Sui, it does not mean It is the only IDO Launchpad in the Sui ecology. Since the creation of the IDO Launchpad platform does not require permission, a well-operated Launchpad may also become a master of customer acquisition and share the liquidity and market value in the ecology. Considering this, the Sui ecology-based Another IDO Launchpad Cetus may become a competitor of SuiPad, taking a piece of the Sui ecology, making SuiPad's ecological leader status uncertain.

< p>But in any case, considering that the Sui ecosystem has just started, it is an undervalued potential stock with a low market value in the current similar track. Therefore, whether it is a value investment or a short-term operation in a bear market, the Sui public chain SuiPad, the first IDO, ISO and INO Launchpad project, is a good investment target.

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