⚙️ Binance Taking over Crypto?

Seedphrase Daily 👋 Happy Tuesday, Hope you enjoyed your long labor day weekend. We’re back with crypto’s hottest sauce straight off the grill.

• ⚙️ Tokenomics for dummies

• 🤔 Binance will transfer all USDC to BUSD

• 🌱 NewSeeds

• 💫 Meme of the Multiverse

Check out our podcast!

This week we brought on a VERY special guest Jian Tam, who made 10s of millions in the crypto space.

On this episode we talk:

• The reasons why he buys/sells

• BTC vs. ETH

• Crypto gaming

• What he's currently working on.

• Price prediction for ETH and other top 10 coins.

Trust me. You’re going to wanna see this! 🔻

Also available on spotify!

⚙️ Tokenomics for dummies

If you don't understand tokenomics, you'll never be able to strategically invest in Crypto.

This is a condensed version of a 25-tweet-long thread by TheDeFiEdge. 

Tokenmoics study the factors that drive demand for tokens and projects. Understanding supply and demand is just as important as going to school, so pay attention.

Tokenomics = Token + Economics

Let's break it down, Cryptopunks' is a collection of 10k NFTs currently valued at $100,000+ each. If supply doubled, the floor price would take a hit because it would be less scarce.

For perspective, the U.S government printed 40% of the money supply in 2020, which caused the market to form one of the biggest bubbles we've ever seen. Break it down more:

What to look for in tokenomics 👇

🔃Tokens in circulation: If there's a low amount of tokens, the likelihood that the price increases because scarcity would be higher. When there's a lot, it's less valuable.

🤝 The holders: Proper coin allocation is essential, meaning if founders or VCs mostly own it, it's at a higher risk to dump. The ideal situation is that if the collection is 10k, there are 10k holders. For Coins, it's very important to understand how much the founding team and initial investors own of the total circulating supply.

🔒 Locked Supply: If some liquidity is locked, it's usually a good sign because founders are working to build long-term and giving themselves a vesting schedule to cash out.

💰 Market Cap: If the floor price is at $0.005, the likelihood of it hitting $1 is higher than getting hit by an asteroid and here's why:

Market Cap = Current Price / Circulating Supply

Understanding tokenomics will make you better at vetting projects for yourself and seeing patterns in winning and losing projects so you can leverage that to gain profits.

Now that you know everything about supply

These are the three main reasons why tokens have demand. 👀

1. Utility: This could be the mass adoption of a product, a scarce token that solves a real-world problem.

2. Value: This could be in the form of staking or the protocol of gaining revenue from interest. In short, it incentivizes people to hold long-term rather than dumping.

3. Memes/Hype: Self-explanatory, but a huge example is derivative collections that succeed based on other projects performing well.

If a project hits all these points, it's a bullish sign.

Now you're an expert. 🤓

For the Full Thread

On September 29, Binance will convert existing balances in new deposits of stablecoins USDC, USDP, and TUSD to BUSD.

This will be a massive increase in liquidity for Binance and an exciting move considering USDC is one of the biggest stablecoins in the space.

Just a reminder that you don't own your coins that are in exchanges. 😳

What this means for us 🤔

If you wish to continue using/holding USDC, then make sure to transfer it from Binance into another wallet or cold storage.

Original Article

🌱 NewSeeds

I hope you enjoyed the long weekend! Maybe things will spice up this week since it was a little slow.

Hacker steals Bill Murray's crypto After $185K NFT charity auction. No hearts. 💔

FTX to halt Deposits and withdrawals on Arbitrum, Solana, and BSC during the merge. Safe call. ⛑

Ethereum Staking pools. Who runs the largest ones? 😵

💫 Meme of the Multiverse

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research