An exciting new crypto project called BTC20 took the crypto world by storm in July, selling out its $6.05 million presale in under two weeks.
Crypto investors piled into the project, enthused by its original take and compelling passive income opportunity.
BTC20 winds the clock back to April 2011, when the bitcoin supply was just over 6 million and the cryptocurrency briefly traded for a price of $1 – that’s why BTC20 opted to sell 6.05 million $BTC20 tokens for $1 each.
BTC20 confirmed on Tuesday that token staking will launch on the 9th of August, while token claiming (and decentralized exchange or DEX trade) will go live on the 10th of August.
Despite the success of the presale and the fact that many crypto experts and influencers are backing the project, concerns around the project’s legitimacy arose after its official Twitter account was banned.
Most likely, BTC20 fell foul of some sort of Intellectual Property (IP) violation on X/Twitter for “passing off” as bitcoin, with some sort of X/Twitter algorithm automatically flagging the project’s account.
A BTC20 source with knowledge of the matter told Cryptonews.com that the project reached out to Twitter to resolve the issue.
The source also added that “BTC20 has never said it is a new version of bitcoin”.
“Instead, we have created a new coin that harnesses the name recognition of bitcoin in the same way that literally hundreds of other coins have done over the years, as seen more recently in the ‘meta 2 version’ trend that has spawned Pepe 2.0, Dogecoin 2.0 and many other tokens”.
For now, BTC20 is operating a new official Twitter account.
Here’s What You Need to Know About BTC20
BTC20 is a token issued on the Ethereum network using the ERC-20 token standard – hence why it’s called BTC20.
Its tokenomics structure mimics that of bitcoin, only with the clock starting in April 2011 when the price was $1 and supply was 6.05 million.
The maximum BTC20 supply is 21 million, but instead of this supply being released to “miners” as is the case with bitcoin, BTC20 will be released to existing BTC20 owners who are staking their tokens.
BTC20 tokens will be released according to the same schedule as the bitcoin blockchain, meaning rewards will be issued every block (roughly every 10 minutes), with reward rate halvings occurring every four or so years, again the same as the original BTC blockchain.
That means BTC20 stakers have an exciting passive income opportunity.
Back in 2011, the bitcoin blockchain was issuing 50 BTC every block, or at a rate of around 2.6 million BTC per year.
If everyone who buys BTC20 in the presale was to stake their tokens, that would imply a yield of north of 40%.
But many likely won’t stake their tokens, meaning even higher yields, because the issuance of new BTC20 tokens will remain the same regardless.
Yields could reach into the 100s of percent depending on the size of the staking pool.
Staking is expected to act as a strong incentive to HODL BTC20.
BTC20 also offers a host of other benefits thanks to the fact that it is issued directly on the Ethereum blockchain.
These include 1) that is has the world of Decentralized Finance (DeFi) right on its doorstep and 2) that, unlike bitcoin, it has next to no negative environmental externalities thanks Ethereum’s shift to proof-of-stake in 2022.
How High Can the $BTC20 Go?
The rapid pace at which BTC20’s presale sold out at sets the stage for a potentially explosive decentralized exchanges (DEXs) launch thanks to pent-up demand and FOMO.
Bitcoin is up over 29,000x versus its 2011 price of $1.
While 29,000x gains for BTC20 might feel outlandish, the success of past bitcoin imitators like Bitcoin Cash (BCH), Bitcoin Satoshi Vision (BSV), and Litecoin (LTC) suggest there is plenty of scope for a new, Ethereum-based competitor to make some waves.
At the very least, BTC20 has 10x potential, per the analysis of Cilinix Crypto, an influential YouTube analyst with 31,000 subscribers.
Another crypto expert, Jacob Crypto Bury, with nearly 20,000 subscribers to his YouTube crypto channel, also believes BTC20 is the next coin to explode.
10x gains at the presale supply of 6.05 million tokens would see BTC20 hit a market cap of $60.5 million.
Shitcoins based on memes and jokes, rather than a real value proposition like BTC20, routinely achieve similar market caps.
Just this weekend, a shitcoin called $BALD briefly hit a market cap of $100 million.
BTC20 can go a lot higher.
100x gains and a market cap of over $600 million, similar to where Pepe coin’s is right now, are a real possibility.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.