cryptocurrency

Here’s what HashKey’s 30% token allocation for staff could mean for investors

Published

3 weeks ago

December 5, 2024

HashKey recently announced that it allocated 300 million tokens to team incentives with a 36-month unlocking period after the launch of its native token HSK. How does this impact investors?

On Dec. 5, HashKey posted an official statement that explains the allocation of HSK tokens for team members. The notice stated that HashKey allocated 30% of its 1 billion token supply for the internal team which follows an unlocking period that consists of a minimum 3-month lock-up period and a 35-month linear release.

“We’d like to clarify key aspects of HSK’s tokenomics and team incentives structure: HSK has a total supply of 1 billion tokens, with 300 million allocated for team incentives,” HashKey wrote in the firm’s official statement.

HashKey said that the 30% token allocation for team members was done to support the growth of HashKey’s ecosystem. The firm claimed that the tokens will be used for licensed exchanges, investment services, tokenization and infrastructure solutions.

Tokens can also be used for exchange fee payments, trading discounts and accessing community incentives. Therefore, current team members and former employees who hold HSK have to adhere to the firm’s token management policies, which regulate issuing, holding and selling tokens in accordance with the lock-up schedule.

Moreover, the Hong Kong-based crypto exchange clarified that employee resignation does not allow former team members to get an early or full token unlock. This is done to prevent former employees from cheating the system and selling tokens before the unlock period.

As previously reported by crypto.news, HashKey first opened deposits for HSK on Nov. 7 at 07:00 UTC, while spot trading for the HSK/USDT pair started on Nov. 26 at 10:00 UTC. The opening of HSK withdrawals occurred on the next day, Nov. 27 at 10:00 UTC.

In the initial announcement, the exchange explained that it had prepared a supply of 1 billion tokens, with 65% of the tokens being allocated to marketing and business development while 30% of the supply went to the HashKey team.

What does the 30% HSK allocation for team members mean for investors?

On one hand, allocation of tokens before a new launch is common practice in the crypto sphere. It is meant to incentivize team members and align their interests with the success of the project. That way, they will be more motivated to work harder to develop the project.

In HashKey’s case, the 36-month linear release period suggests the team is committed to the project’s long-term development. The unlocking period also reduces the risk of a pump-and-dump happening, because team members are unable to sell tokens quickly to gain profit within the period.

On the other hand, setting aside a chunk of the token supply for team members means that there are fewer tokens available in circulation. Usually when the portion reserved for insiders is too high, there will be higher pressure for insiders to sell tokens.

When the lockup period ends and tokens start unlocking, the team could still potentially sell their tokens to realize profits, which would in turn increase supply and potentially lower prices. Therefore, investors would need to keep an eye on the unlocking timeline and the project’s development milestones.

According to data from CoinGecko, HashKey’s platform token is down 9.4% in the past day. HSK is currently trading hands at $1.31 at the time of writing. In the past week, the token has gone up by nearly 20% and has a fully diluted valuation of $1.3 billion. Though, there is no information about how many tokens are circulating on the market right now.

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Bitcoin

Metaplanet makes largest Bitcoin bet, acquires nearly 620 BTC

Published

7 minutes ago

December 23, 2024

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Tokyo-listed Metaplanet has purchased another 9.5 billion yen ($60.6 million) worth of Bitcoin, pushing its holdings to 1,761.98 BTC.

Metaplanet, a publicly traded Japanese company, has acquired 619.7 Bitcoin as part of its crypto treasury strategy, paying an average of 15,330,073 yen per (BTC), with a total investment of 9.5 billion yen.

According to the company’s latest financial disclosure, Metaplanet’s total Bitcoin holdings now stand at 1,761.98 BTC, with an average purchase price of 11,846,002 yen (~$75,628) per Bitcoin. The company has spent 20.872 billion yen in total on Bitcoin acquisitions, the document reads.

The latest purchase is the largest so far for the Tokyo-headquartered company and comes just days after Metaplanet issued its 5th Series of Ordinary Bonds via private placement with EVO FUND, raising 5 billion yen (approximately $32 million).

The proceeds from this issuance, as disclosed earlier, were allocated specifically for purchasing Bitcoin. These bonds, set to mature in June 2025, carry no interest and allow for early redemption under specific conditions.

Metaplanet buys dip

The company also shared updates on its BTC Yield, a metric used to measure the growth of Bitcoin holdings relative to fully diluted shares. From Oct. 1 to Dec. 23, Metaplanet’s BTC Yield surged to 309.82%, up from 41.7% in the previous quarter.

Bitcoin itself has seen strong performance this year, climbing 120% and outperforming assets like the Nasdaq 100 and S&P 500 indices. However, it has recently pulled back from its all-time high of $108,427, trading at $97,000 after the Federal Reserve indicated only two interest rate cuts in 2025.

Despite the retreat, on-chain metrics indicate that Bitcoin is still undervalued based on its Market Value to Realized Value (MVRV-Z) score, which stands at 2.84 — below the threshold of 3.7 that historically signals an asset is overvalued.

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Blockchain

Horizen spikes 60% to lead gainers as BTC, ETH bounce

Published

3 days ago

December 20, 2024

admin

Horizen price spiked more than 60% in 24 hours as the cryptocurrency market looked to recover from a massive dump that saw top altcoins crash to key support levels.

On Dec. 20, as Bitcoin (BTC) traded to above $97k and Ethereum (ETH) bulls pushed above $3,400, the price of Horizen (ZEN) surged to highs of $26.34. The cryptocurrency, which rallied sharply following a recent Grayscale Investments announcement, reached a multi-year high and ranked among the top gainers in the 500 largest cryptocurrencies by market cap.

ZEN traded at lows of $14.55 on Dec. 19. However, despite the broader crypto crash and the staggering $1.4 billion liquidations, the altcoin’s price hovered above $26 in early trading during the U.S. trading session.

According to crypto.news price data, Horizen recorded a 24-hour trading volume of over $397 million, with its market cap exceeding $407 million. These metrics reflected increases of 294% and 62%, respectively, in the past 24 hours. While ZEN has surged nearly 200% over the past month, its current levels are still more than 84% below the all-time high of $168 reached in May 2021.

If the broader crypto market continues to rebound, ZEN bulls may aim for March 2022 highs near $50.

The positive momentum has benefited from Grayscale opening of the Grayscale ZEN Trust to qualified investors. Prices of the altcoin rose as the digital asset manager unveiled the fund to offer exposure to Horizen for qualified investors.

Earlier this month, Horizen’s native token underwent its final halving, which came as the project geared for a key change in its tokenomics. ZEN will not see any further halvings as the new network mechanism enables a declining emission rate.

That’s because Horizen, is shifting from the proof of work mining model that mirrored Bitcoin’s halving cycle to a new proof of stake mechanism in 2025. Horizen’s last halving occurred on Dec. 12, 2024.

New tokenomics for Horizen will come into effect in the first half of 2025.

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Binance

Binance Futures updates leverage and margin tiers for multiple USDⓈ-M perpetual contracts

Published

4 days ago

December 19, 2024

admin

Binance’s updated leverage and margin tiers offer improved trading options for select trading pairs, bringing both potential rewards and risks for crypto traders.

The leverage and margin levels for USDⓈ-M perpetual contracts, including DAR, ME, CAKE, IOTA, LPT, ONE, and ZEN, will be updated by Binance Futures today, with effect from 08:15 UTC on Dec. 19, 2024.

USDⓈ-M stands for USD-Margined Futures, a type of cryptocurrency futures contract offered on platforms like Binance. It refers to stablecoins such as USDT (Tether) or BUSD (BUSD), which are pegged to the US dollar. These contracts are settled in these stablecoins, rather than traditional fiat currency or the underlying crypto asset.

Depending on the contract and position size, the revised leverage tiers will vary from 1x to 75x, enabling traders to fully benefit from their leveraged positions in the crypto market.

Leveraged positions of traders will be impacted by the new maintenance margin rates, which range from 1.00% to 50.00%.

Margin is the total amount of collateral needed to open and sustain a trading position, whereas leverage is the borrowing of funds to increase the size of a position. The possible return increases with leverage, but the chance of loss also goes up.

By adjusting the margin and leverage tiers, Binance Futures continues to give traders more choices to control risk and profit from volatile crypto market movements.

Traders must keep themselves updated with Binance Future trading rules and exercise risk management, particularly when working with high-leverage instruments over several contracts and margin holdings.

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