pSTAKE has low market capitalization and high circulation, and cooperates with Babylon to add a new BTC pledge narrative

pSTAKE has low market value and high circulation, and cooperates with Babylon to add a new BTC pledge narrative. The early business of pSTAKE is the liquid pledge of BSC and Cosmos ecology. These two pledge businesses are not hot spots. In May 2024, the BTC re-pledge business was added and cooperated with the BTC pledge agreement Babylon. This collaboration may lead to rapid and sustained growth in business scale.

Today, the editor of this site will share with you a detailed introduction to the new BTC pledge narrative in the cooperation between pSTAKE and Babylon. Friends who need it can take a look!

Basic situation

pSTAKE Finance is a multi-chain liquidity staking project. The token will be launched in early 2022. The project originally provided liquidity for the BSC chain and the Cosmos ecosystem. Sex token staking service, TVL is approximately $7 million. Recently, it cooperated with BTC pledge project Babylon to launch BTC pledge business. More than 90% of the project tokens have entered circulation, and the token market value is US$57 million.

Team and Financing: Binance Labs strategic investment in 2022

The founder has a Singaporean background and graduated from Nanyang Polytechnic University. The project received US$10 million in angel round financing in November 2021. Investment institutions include Galaxy Digital, Coinbase Venture and other institutions. The token price of this round of financing was US$0.1, and the institution received 100 million tokens, accounting for 20% of the total token supply. %. A public offering was held through coinlist in December 2021, with a total raised amount of US$10 million and a token price of US$0.4. A total of 2,500 tokens were sold, accounting for 5% of the total token supply. In May 2022, the strategic round of financing received a single investment from Binance Labs, and the specific investment amount and valuation were not disclosed. It can be seen that from the perspective of financing prices, the current secondary market price is close to the seed round financing price and lower than the public offering round price.

Suffering from the investment difficulties caused by the token issuance model of low market value and high FDV, Binance released a public recruitment plan for the Binance currency listing project in May 2024. We hope to promote the development of the blockchain ecosystem by strengthening support for small and medium-sized cryptocurrency projects with good fundamentals, organic community foundations, sustainable business models, and industry responsibility. As a low-market value, high-circulation token that participated in Binance’s bear market and has not yet been listed on Binance, pSTAKE has the opportunity to be selected into the program.

Token Economics: 93.6% of the tokens have entered circulation

The total amount is 500 million and will be launched in February 2022. More than 93.6% of the tokens have already entered circulation. The unreleased portion belongs to the team. According to the plan, the team will lock up the funds for 18 months and then release them linearly within 18 months. It will take a total of 36 months to release them, which means that they will all be released in February 2025.

Recent cooperation: BTC re-staking new narrative

Recently, pSTAKE has expanded its business and focused on Regarding BTC re-pledge, we reached a cooperation agreement with Babylon, the BTC staking agreement. This cooperation is an entry into the current new narrative and may bring larger-scale and longer-lasting TVL growth to the project.

Babylon is a Bitcoin pledge protocol founded by Professor David Tse of Stanford University. It has received a total of US$96 million in investment from first-tier crypto investment institutions, including Paradigm, Hashkey, Binance Labs, Polychain, IDG and other institutions. Babylon is similar to Eigenlayer in Ethereum. It is currently in the test network stage. After its main network is launched, TVL is expected to grow rapidly.

A series of cooperation agreements will emerge around Babylon, and the business scale of these agreements will increase. At the same time, competition will also form between protocols. At present, multiple protocols have announced cooperation with Babylon in BTC staking, including BTC second-layer B²Network, Merlin, ZK-driven BTC execution layer Chakra, AI re-pledge protocol Mind Network, etc.

#pSTAKE’s liquidity staking solution will provide Bitcoin income. Users who deposit BTC into pSTAKE can obtain corresponding liquidity pledge tokens, participate in other DeFi projects on the chain, and earn income. After the Babylon mainnet is launched, the BTC deposited in PSTAKE will also be pledged to the Babylon protocol to obtain corresponding income.

Binance also has feedback on pSTAKE’s latest business development direction. Binance Research mentioned this change in its weekly market highlights summary on May 19.

Valuation comparison

The following is the valuation of the Ethereum re-pledge protocol listed on Binance. Dimensions of consideration that affect valuation include: narrative popularity, business data, liquidity premium (whether to be listed on Binance), financing valuation, track competitive advantage, etc. pSTAKE is not much different from previous institutional financing valuations, and is overall relatively undervalued. A brief comparison of the valuations related to Ethereum pledged tokens as a reference. It should be noted that the actual TVL of pSTAKE is currently very small, and there is a large gap compared with Ethereum re-staking projects.

Under different market capitalization assumptions, pSTAKE’s price changes and FDV changes:

Conclusion

1. The current market value of pSTAKE is relatively low, and the tokens are basically in full circulation. The token was launched in February 2022. It has experienced the entire bear market decline and has been fully shaken. The current market price is close to the private placement price of the seed round and far lower than the price of the public placement round. Receive investment from Binance in 2022.

2. The business adds hot new narratives. The early business of pSTAKE is the liquid pledge of BSC and Cosmos ecology. These two pledge businesses are not hot spots. In May 2024, the BTC re-pledge business was added and cooperated with the BTC pledge agreement Babylon. This collaboration may lead to rapid and sustained growth in business scale.

3. pSTAKE will receive strategic investment from Binance in 2022, with low market capitalization + high circulation + new narrative: BTC pledge blockbuster agreement cooperation + Binance strategic investment, with the opportunity to become an open recruitment project for Binance’s currency listing Plan the selected project.

4. The main risk is that pSTAKE currently has a very small TVL and will mainly rely on the development of babylon in the future; babylon is still in the test network stage and requires a certain amount of waiting time. At the same time, there are multiple agreements to cooperate with babylon, pSTAKE is not necessarily in a dominant position in the BTC re-staking track, and business growth data is not as expected.

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