On March 5, Ady Lang, BTCST’s community angel, told Cointelegraph China during its Hub event that Bitcoin Standard Hashrate Token, a collateralized token by Bitcoin’s hash rate and the first hash rate token to launch on Binance Launchpool, could benefit both miners and investors.
Lang said investors can see BTCST as a Bitcoin leverage with bigger earnings in a bull market and cash flow in a bear market. While bringing liquidity to Bitcoin’s hash rate like other exchanges, each token has a real Bitcoin hash rate that can act as collateral.
She added that by staking BTCST, holders of the tokens will receive daily Bitcoin distributions that correspond to the mining power staked. And because the market price of BTCST is determinable as the discounted cash flow of the underlying mining power, BTCST in secondary trading will perform as a leveraged Bitcoin token free from liquidation risk.
BTCST will create an efficient market for Bitcoin’s mining power in ways similar to how Grayscale Bitcoin Trust creates institutional liquidity for Bitcoin, said Lang.
BTCST has been integrated with BTC.Top, Easy2Mine, Genesis Mining, Atlas Mining and Hengjia Group, which are supported by Math Wallet, TokenPocket and SafePal, according to Lang.
Lang added that BTCST’s daily trading volume on Binance is as high as $80 million and has been listed on Binance, VCC and PancakeSwap.
Benefits of holding BTCST
Lang believes that when BTC’s price increases in the long run, BTCST’s price can go higher, faster.
BTCST can also bring BTC’s hash rate assets into the DeFi world to build a more valuable anchor, higher income and more controllable underlying infrastructure for the DeFi sector.
“BTCST will not only bring exchange level liquidity to Bitcoin hash rate and break through the inherent barriers, but also enable innovation in DeFi.”
The DeFi ecosystem is at a prosperous stage, and hash rate mining has also experienced years of precipitation and accumulation. BTCST is planning to join the DeFi experiment and hopes it will provide a solid foundation for all kinds of other innovations to come. Lang said:
“We have always been positive and optimistic about the development of the whole DeFi ecosystem and the future of hash rate mining. As the industry is progressing, BTCST also hopes to create more value for the market and market participants through its own product design, to improve the liquidity of capital, and to improve the allocation of capital.”
Vote on a split
Due to the hot market performance and attention of BTCST, the single currency price has a high threshold for many participants, so the community launched a vote on the split, according to Lang.
The Standard Hashrate Group initiated a community denomination voting proposal at 02:00 UTC+8 on Feb. 22, 2021. For the vote, the proposal provided a total of four options for the token denomination while keeping the overall valuation of BTCST unchanged.
According to voting data: “Under the condition that the total valuation of BTCST remains unchanged, the circulation will be changed from 1.5 million to 15 million.” The option was approved by the majority of the BTCST community and became the result of the STP-4 community proposal vote.
The split itself will allow current users and new users to purchase and hold BTCST at a lower unit price. From many previous cases of splits, the entry threshold of a single currency will be reduced, and more people can enjoy the liquidity and value of a split currency.
The split itself will not affect any economic benefits of BTCST and the return on equity, while the effective market value and basic balance of each account will remain unchanged.
Lang believes that with the participation of more users, the ecosystem of BTCST will be more prosperous, the value of liquidity will increase, and the market will be able to better capture the real value of BTCST as the first hash rate token.