In this article, what is Bitcoin Standard Hashrate Token (BTCST)? We will answer the question and provide detailed information about the project.
In this article, what is Bitcoin Standard Hashrate Token (BTCST)? We will answer the question and provide detailed information about the project.
Bitcoin Standard Hashrate Token (BTCST) Nedir?
A major barrier to participation in Bitcoin mining is the limited number of exit options. The Bitcoin Standard Hashrate Token (“BTCST”) solves this problem by bringing stock market-level liquidity to Bitcoin mining.
Each BTCST is secured with 0.1 terahash (“TH / s”) Bitcoin mining power per second. By staking BTCSTs, token holders will receive daily Bitcoin distributions corresponding to the staked mining power.
Moreover, as the market price of BTCST can be determined as the discounted cash flow of underlying mining power, BTCST in secondary trading will operate as a leveraged Bitcoin token free of liquidation risk. BTCST will create a fertile market for Bitcoin mining power.
Binance Launchpool, a new project that aims to bring the decentralized finance (DeFi) experience to Binance users and where investors can earn new token rewards for staking, launched its first project, called the Bitcoin Standard Hashrate Token (BTCST), this year.
The Binance team stated that BTCST aims to solve the problem of “limited exit options” by offering “swap grade” liquidity to Bitcoin mining, and that during secondary trading, BTCST will serve as a “leveraged” Bitcoin token “free from liquidation risk”. .
They also stated that BTCST will support an “efficient” market for Bitcoin’s (BTC) mining power in ways similar to the way Grayscale Bitcoin Trust provides or creates institutional liquidity for its flagship cryptocurrency.
As stated in the announcement:
“BTCST has historically been secured by 0.1 TH / s of real-world Bitcoin mining power, which has proven to be positively correlated with the performance of digital gold, and therefore the value of BTCST is climbing along with the rapidly rising Bitcoin market.”
BTCST was reportedly reviewed by CertiK, a leading blockchain security firm that “scored 98 out of 100 in security auditing”.
Alex Zhao, co-founder and CTO of BTCST, said:
“Compared to traditional cloud mining, BTCST reflects the decentralized spirit of the blockchain with the distribution of all mining rewards through smart contracts with full transparency on the chain.”
Daisy Zhang, co-founder of BTCST, said:
“Standardization and tokenization of hashrate enabled by BTCST can bring unprecedented liquidity to Bitcoin mining. Miners and traders link together to make profits from both sides. Especially contrasting against the strong bull market, BTCST contains enormous potentials that I believe will sweep the market. ”
Binance CEO Changpeng Zhao noted:
“BTCST is already deployed on Binance Smart Chain as a Cloud mining platform, and we are supporting the project through our mining pool. We are delighted to continue working with BTCST for further development through Binance Launchpool.”
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