DeFi Yield Farming

The war of hashrate tokens has begun: Poolin (pBTC35) vs Binance (BTCST)

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There seems to be no shortage of news in the crypto sector lately. The latest development is the launch of hashrate tokens, which are ERC20 tokens on the Ethereum network that allow to do yield farming and get bitcoin in return. 

The first token in this new niche has been announced by Binance and is called BTCST. It is a token which was created in 1 million units and which performed amazingly well on its first day of launch, with the price increasing by 800%. Each BTCST token is anchored to a computing power of 0.1T of 60W/TH. At current prices we are therefore talking about 800 dollars for each T of hashrate, really high prices that are 8-10 times higher than the real calculation prices. The hype of being added to one of the world’s largest exchanges was palpable from day one!

Soon after, another similar token arrived, this time from Poolin, the second-largest bitcoin web farm in the world. The token is called pBTC35 and was created in 50,000 units. The launch was a bit different as pBTC35 was sold in a sort of pre-sale, where everyone could buy 1 token for the fixed price of $100. Subsequently, the token arrived on Uniswap, scoring killer volumes (more than $20 million in volumes in the last 24 hours) and peaks of around $200. Subsequently, due to a lot of FUD on the official pBTC Telegram group, called Mars Official, the price dropped dramatically, returning below the $100 mark. However, in a surprise announcement, Poloniex listed this token helping it to rise in value again, which is currently around $170 per token. 

Each pBTC35 token is pegged to a 1T hashrate of 35W/TH, thus also offering cheaper electricity. In this case, the cost of 1TH at the current price is around $170, so a cost 4-5 times lower than BTCST. Both tokens, however, currently cost much more than the true cost of mining. 

But is it worth holding pBTC35 or BTCST tokens?

Absolutely yes if you want to farm Bitcoin on the Ethereum network. In the case of pBTC35, when you buy tokens you can farm wBTC (fairly high but variable APY) and MARS tokens, which are tokens created by Poolin to incentivize holding the main token: pBTC35. Both tokens have attracted a lot of interest and have entered the top 10 trending tokens on DexTools, the most visited site in the world by Uniswap users. 

In the case of BTCST there is certainly some security in that the farming is done directly on tokens held on Binance and at the moment the APY is really high, since it is around 250% (in these early days there is a boost that allows an almost surreal yield farming, superior to traditional ones). 

These two hashrate tokens will surely be followed by others, seeing how in the crypto sector trends come and go, so always try to differentiate your portfolio without going all-in on your favourite token. 

P.s. How come none of these tokens were launched on the Lightning Network but all on Ethereum or CEXs? 🙂

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