Over the course of its lifetime, Bitcoin has returned incredible gains for those that adopted it early.
However, in the last 18 months the price has struggled to reach anywhere close to its previous highs and, despite an explosive start to the year has now been trading sideways for months as it hovers around the $30,000 mark.
Now a new Ethereum-based alternative to Bitcoin – BTC20 – is set to launch with investors hugely excited by its massive potential and upside.
The project launches staking on August 9 ahead of its IEO on leading decentralized exchange (DEXs) Uniswap on Thursday, August 10.
BTC20 allowed investors a second chance at buying BTC at $1 – a price not seen since 2011 – and enjoyed an incredible presale that raised $6.05 million in just two weeks.
Stake BTC20 for up to 520% APY
BTC20 mirrors Bitcoin in many ways, including with its strict 21 million supply and mimics its huge unlock period, which will occur over 120 years.
Excitement is now building for the staking feature which goes live at 3pm UTC on August 9 and could become one of the best passive earning opportunities in the whole space.
Of the total supply, 14.95 million BTC20 tokens are locked in the staking contract to reward participants and tokens can be sent to the staking pool to earn more BTC20 over time.
How BTC20 Staking Works
Those investors who purchased BTC20 in the presale can send their tokens to the staking pool from 3pm on August 9, with staking rewards accruing straight away – tokens cannot be claimed until August 10 at 3pm.
Those staking on August 9 will see their entire balance of BTC20 staked and locked for seven days, while those who decide to wait can choose an exact amount from August 10 at 3pm UTC.
The minimum seven-day lock applies to all staked tokens but an indefinite period can also be selected.
As an example:
- Rewards Per Block (BTC20): 50
Approximate Blocks Per Year: 52,000
Total Annual Rewards (BTC20): 2,600,000
- Total Staking Pool (BTC20): 500,000.
Individual Amount Staked (BTC20): 5,000.
Percentage of Pool: 1%
- Individual Rewards (BTC20): 26,000.
Annual Percentage Yield (APY): 520%
This is an example of the huge potential of the staking pool, although exact amounts will change depending on various factors, including the overall amount staked.
BTC20 Showing 10x Potential Ahead of Listing
With BTC20 tokens to list on Uniswap from 3pm UTC on August 10, some crypto analysts have already highlighted its huge potential for gains.
As well as the incredible staking rewards, investors have been attracted to the project mirroring Bitcoin which, of course, is one of the best-performing financial assets ever.
Crypto analyst Connor Kenny, who has more than 160,000 subscribers on YouTube, evaluated the project and described it as having the potential to ‘explode’ in price after it reaches DEXs.
Despite being modeled on the same fundamental principles of Bitcoin, with its strict supply and long-term unlocking period that includes four-year halving cycles, BTC20 also has several noticeable advantages over BTC.
It is an ERC-20 token built on the Ethereum blockchain which is seen as being superior to the Bitcoin blockchain in many ways.
Ethereum has faster transaction speeds, significantly lower energy consumption and is the home of decentralized finance (DeFi) and decentralized app (dAPP) builders.
There are also the staking opportunities for BTC20 that are not offered by Bitcoin.
Provide Liquidity and Earn
Staking isn’t the only earning option with BTC20, however, with investors also able to offer their BTC20 tokens as liquidity on Uniswap after the DEX launch.
Again, the exact earning potential will be based on different factors but both staking and providing liquidity will be a huge incentive for investors to hold rather than sell their tokens, which will drive the price up.