Is It Worth Investing in Binamon?
For years, fans of collectable card games have been limited to their own home with these cards. Now those same people can take the digital game and experience it in a virtual world! This is possible thanks to Binamon - an NFT blockchain-powered gaming metaverse where users can enjoy collecting digital monsters and battle royale.
Binamon is trying something new by utilizing both blockchain technology and NFT to create a more exciting gaming experience.
There are a variety of game modes, such as collecting Binnamons or battling other users' NFTs by staking your own! In addition, gamers can turn their earned $BMON into even rarer characters via token minting - the process uses smart contracts known as Boosters.
The Binamon platform is a revolutionary way to enjoy, collect and invest in NFTs. Gamers can stake their rare BINAMON tokens for rewards or use the $BMON token, which generates more tradable gaming pieces through minting.
What is Binamon?
Binamon is an NFT and blockchain-based metaverse of digital monsters that run on the Binance Smart Chain (BSC). The platform makes it easy for millions of people to join and enjoy a variety of gaming modes.
The digital monsters on Binamon are known as Binamons and usually have four unique characteristics. These are:
- Resistance (Hornpower)
Each of these characteristics contributes uniquely to making Binamons more powerful and, therefore, enhance their performance while gaming or during battles.
Additionally, the four characteristics help to boost the market price and subsequently the intrinsic value of the Binamons. That is, the more powerful a digital monster is, the more valuable it is.
The most interesting part is that you can create your own customized Binamon and have its physical version delivered to your home. To do this, you’ll need to use the smart contract that is unique to this purpose then prove ownership of the NFT. You can then pay for your creation using the BMON token.
The company behind the game, Binamon Limited, is an Argentinian-based gaming platform that mostly focuses on blockchain-based digital monsters hosted on the BSC, where they are traded as NFTs.
How Binamon Works
Binamon runs on the Binance Smart Chain instead of Ethereum like most other blockchain-based games. The Binamon game uses Unreal Engine, an AI graphic technology developed by Epic Games. This technology has been used on several other popular games such as Final Fantasy Ⅶ, The Last of US Ⅱ, Street Fighter V, Call of Duty Black Ops Ⅲ and Fortnite.
The game comes with a mobile application that has a digital wallet that players can use to hold their BMON tokens. The app also provides a peer-to-peer marketplace where investors can trade their tokens across the metaverse.
What’s more, you can use the mobile app to keep track of your transactions and monitor your BMON tokens.
When you acquire NFTs by minting your BMON tokens, you get three digital monsters or Binamons that have unique powers and features. A probability calculation is used to tell the features of the Binamons apart.
There is also a winner-takes-all battle mode that allows you to wage your BMON tokens and battle other users. If you win the battle, you are rewarded with the waged tokens.
These battles usually involve Binamons of the same class to avoid disadvantaging players with less powerful monsters. The battle is supervised by a smart contract, and a small percentage of the staked tokens are burned.
In particular, 10% of tokens collected during tournaments are usually burned, while 90% go to the winners. Binamon also holds an occasional lottery which gives participating players an opportunity to upgrade their Binamons.
A small percentage of the tokens used in lotteries are also burned.
Let’s learn more about the BMON token below.
About the BMON Token
BMON is the in-game currency of the Binamon digital metaverse. The token is used for a variety of reasons, including waging during battles and upgrading Binamons.
At the time of writing, BMON was trading at around $0.17 based on price data from CoinMarketCap.
There’s a total of 300 million BMON tokens in supply after gradually doubling from the initial supply of 150 million tokens.
BMON had an initial market capitalization of 7500 BNB (Binance Coins) with a diluted market cap of 15,000 BNB.
The initial seed round raised 1,500 BNB in about 15 minutes, and the presale participation tokens add up to 2,500 BNB.
The company has held a number of other sales rounds to raise more funds for the project. The fund from the sale is invested in the company as follows:
- 20% is used for general development
- Another 20% goes into marketing
- Another 20% covers expenses accrued during operation
- 40% is put on the liquidity pool
The 300 million Binamon Tokens in circulation are allocated as follows.
- 20% is used for funding the staking pool
- 17% is reserved for the seed round
- 10% is used for the development of the Binamon ecosystem
- 11% remains in the liquidity pool
- 10% is used for marketing
- 22% is reserved for private sale
- 5% is used to compensate advisors
- 5% is distributed among the Binamon team
This information will help you understand what you are getting into if you decide to invest in Binamon. However, to get a clear understanding of whether or not it is a good investment, let’s look at its price history and current price predictions.
The price history will help you understand the token’s past performance, while the predictions give a general indication of where the price might be going. Both of these analyses should help you decided whether you should go ahead and invest or look for an alternative.
Binamon Price History
According to CoinMarketCap, BMON started trading in late June 2021 where the initial price was as low as $0.006. There wasn’t much price action in the beginning until around early July, when the token crossed $0.01 and $0.02 in mid-July.
From there, BMON started on an exciting uptrend that saw it rising parabolically. For instance, on July 11th 2021, the token rose from $0.016 to $0.054, representing a 237.5% increase in just one day.
BMON dropped to $0.04 the same day, but from there, it started adopting an upward momentum. There were some fluctuations between 12th and 13th July, with the price mostly playing between $0.03 and $0.05.
On July 14th, BMON saw another dramatic spike from $0.045 to as high as $0.28 on July 15th. That is a staggering 478% increase in less than 24 hours.
However, the price fell again to less than $0.2 the same day and as low as $0.14 the next day on July 16th, 2021. From there, BMON bounced between $0.18 and $0.25 until July 18th where another big price leap took place.
The price of BMON rose from $0.24 to $0.4851 on July 19th. This is the token’s current all-time high price. Although it dropped again to $0.335, it quickly bounced back to $0.41 the same day.
The price kept fluctuating afterwards with an unpredictable trajectory. At the time of writing, BMON price doesn’t show any signs of an uptrend and is currently trading at as low as $0.17.
This kind of downtrend momentum might be discouraging for people who want to start investing. That is why, the most important question we should be asking ourselves right now is, will the price rise again?
To answer that, let’s look at what the price experts are saying about the price movement of BMON in 2021 and 2022.
Binamon Price Predictions for 2021 - 2022
When Binamon hit its highest price, analysts were very hopeful about its future. However, after the July crash, the predictions are now turning bearish, with some predicting a further slump until the end of the month.
For instance, Digital Coin Price, which previously predicted that the coin would go as high as $0.7 by the end of the year, is now down to $0.25. In fact, according to the site, Binamon won’t record much growth for the rest of this year.
Digital Coin Price predicts that BMON will end July at $0.213, which is not a bad growth compared to the current price. However, from August the price will somehow stagnate with little changes between the months.
There will be subtle fluctuations in August, with the coin ending the month at a lower price of $0.212. As you can see, this is not much different from the end of July price. There will be a further drop to $0.211 by the end of September and $0.207 in October.
Digital Coin Price’s predictions indicated that BMON will drop gradually from July to October.
Another site known as Coins Kid predicts that Binamon might drop to $0.148 by the end of August and further to $0.136 in September. The site also predicts that Binamon will finish October, November and December at $0.1408, $0.1591 and $0.1654, respectively.
This is a rather bearish prediction, and we hope for the sake of those waiting for the price to rise this year that it doesn’t come true.
For 2022, Digital Coin Price foresees another fluctuation, with the price mostly playing between $0.2 and $0.34. According to the site, BMON will start trading at $0.3053 in January 2022. While this seems like a good start for the year, the price might go down to $0.28 in February and further to $0.277 in March.
There will be a slight increase to $0.281 in April, and then in May, BMON might jump to $0.323 before dropping back to $0.282 in June.
The price will then rise again and trade between $0.31 and $0.34 from July to September. It might drop from October and close the year at $0.294 per token.
Given that the price of Binamon is still below $1, it is a bit hard to predict its direction. That is why most of the predictions conform to a rather conservative trajectory while many others prefer not to give any predictions at all.
This is understandable since the token is still new (it’s barely two months old), and there is not much data to fall back on. For this reason, we recommend that you take these predictions with a grain of salt and not depend on them to make an important investment decision.
Otherwise, if after doing your own research and consulting experts you decide to go ahead and Invest, below are some of the ways you can do just that.
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How to Invest in Binamon (BMON)
Being so new in the market, most investors are not exactly running to invest in Binamon. However, if you are interested, there are three common ways we recommend if you want to invest in the metaverse. The first two are common across all cryptocurrencies, while the third is somehow unique to Binamon.
Here are the three methods you can invest in Binamon:
- By HODling
- By trading
- By playing the game
Let’s cover each of these methods in more detail.
Method 1: HODLing Binamon
Hodling is an informal form of the word ‘holding’, which simply means buying cryptocurrencies and storing them for a long time. This can be a few to several years.
The purpose of holding is to wait until the price of the underlying asset has grown high enough that it is very profitable. For instance, if you buy Binamon now, you can wait until the price is, say, $50 per token before selling.
Currently, Binamon doesn’t seem like a good candidate for holding due to its slow-growing price. However, if it follows the trajectory of most cryptocurrencies, it might start growing faster after the first year.
If that were to happen, now would be a great time to buy since the price is very low. Although we didn’t have a lot to look at in terms of predictions, BMON might bounce back from its current downtrend in the months ahead.
HOLDing Binamon is fairly straightforward, and that’s why we recommend it for beginners. All you have to do is buy the tokens and transfer them to a wallet for holding.
There might not be many exchanges from where you can buy BMON since it is new. Lucky for you, you have the option of buying and keeping your tokens in the default wallet that comes with the Binamon mobile app.
Alternatively, you can go the long way where you buy USDT from an exchange using fiat money and then trade the USDT for some Binamon Tokens.
After buying, you will need to store your tokens in a secure hardware wallet such as Ledger Nano S. While software wallets are more convenient, they are vulnerable to hacking, and you might lose your investment.
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Method 2: Trading Binamon
Trading is much more complicated than hodling, and you might want to learn the ropes first before starting.
You can trade Binamon in one of two ways:
- By speculating on price movement via a CFD account
- By buying and selling BMON tokens through an exchange or trading platform like eToro.
With CFD trading, you simply speculate on the price movement without necessarily having to buy or own any BMON tokens. So, if you don’t want to buy the tokens, this would be a good option. However, you will still need to make a deposit (called margin) in order to access the market.
All you have to do is go long or ‘buy' if you think the price of Binamon will rise or short/’sell’ if you think the price will fall.
Alternatively, you can trade by buying and selling actual BMON tokens based on the price movement. In this case, you are not speculating by following the price movement. Simply put, if the price starts rising, you can buy (go long), and if it starts dropping, you sell (go short).
Currently, trading BMON might be better than holding since you won’t have to wait for many years before you can make a profit. In fact, with CFD trading, you can profit both when the price falls and when it rises if your predictions come true.
This means that you don’t necessarily have to wait for the price to go up before you can make a profit.
Having said that, trading is riskier than holding, and you might lose all your investment, especially if you use leverage.
In any case, if you don’t want to trade or hold, you can still earn some BMON tokens by simply playing the game.
Here is how:
Method 3: Playing Binamon
This is perhaps the most exciting way to invest in Binamon. Being an NFT gaming platform, there are a number of ways you can earn rewards in the form of BMON tokens by playing the game.
These include rewards you get by completing missions and those from tournaments.
We consider this an investment since you are earning more tokens which you can then use to trade or transfer to a wallet for holding. So, if you don’t want to actively trade, we think gaming might be a good alternative.
For this investment to be effective, we recommend tying it back to the first two. For instance, you can use the tokens you earn as rewards to trade or transfer to your hardware wallet for holding, like in the first method.
Alternatively, you can stake your rewards back into the liquidity pool and earn even more tokens passively. This way, you will increase the amount of BMON tokens you have without having to buy any new ones.
Is Binamon a Good Investment?
After going through the above sections, you should be able to decide whether you want to invest in Binamon or not. However, we have not really answered the most important question; Is Binamon a good investment?
In reality, no cryptocurrency is an outright good or bad investment for everyone. It all depends on how and why you are investing.
For instance, are you trading, holding or gaming? If you intend to hold Binamon, you might have to wait for several years before it becomes a good investment. The price is drudging along, and it might take some time before it reaches a level where it is profitable and worth the wait. We are talking about more than 10 years here.
On the other hand, while trading might be a good option for short-term gains, it comes with a lot of risks, and there is a high probability of burning through your stash. Trading is like gambling. Sometimes you win, sometimes you don’t. But if the market is favourable, you might make some good returns and even transfer some to your external hardware wallet for holding.
Finally, the best way to profit from Binamon as an investment is by doing a combination of at least two of the methods we discussed.
Conclusion: So, Should I Buy BMON Tokens?
The decision to buy or not to buy BMON tokens mostly depends on whether you believe NFTs and blockchain-based metaverses like Binamon have a future. If you do, you can buy some tokens and either trade or hold them in a wallet.
Having said that, there are other reasons, aside from the investment bid, why you might want to buy some BMON tokens.
For instance, if you are a player and want to experience the exciting virtual world of Binamon, having some tokens will help make the gaming more exciting.
For instance, you can use the tokens to improve the performance of your monsters and stake them to participate in battles where you could win even more tokens.
Having Binamon tokens will also allow you to participate in community governance.
As a BMON holder, you will be able to vote on changes to the ecosystem, such as new game functionalities and also help solve issues on the metaverse.
Finally, don’t forget that Binamon, like any cryptocurrency, is highly volatile, and there is a high probability that you might lose your money. Before you buy the tokens, make sure that you have done your own research and are sure that it is the right thing to do. Also, don’t let anywhere pressure into unwillingly buying BMON tokens. Every decision you make should be your own.
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