- INVESTMENT IDEAS
BSX crowdloan capped out. You can still profit!
- Didn’t participate in the crowdloan? You can pitch into the LBP.
- Basilisk is poised to grow with loyal followers and clever tokenomics.
- LBP token sales mean a dutch auction, and could be pricey.
- With many more KSM projects to come, there’s room to grow for both BSX and Basilisk’s liquidity bootstrapping services.
Basilisk (BSX) reached the KSM crowdloan cap before the end of Kusama parachain auction 8. With 222,222 KSM locked, there’s no way to participate in the generous reward scheme anymore.
But its Liquidity Bootstrapping Pool (LBP) is about to open in a week, according to the project's roadmap. The LBP will allow investors to snatch up 5.63% of all BSX.
That way, investors can still get in on the ground floor of this exciting project.
Potential - The way of the Snek
Basilisk is poised to win Parachain Auction 8, ending on 22 September. This will be a windfall for the participants of the crowdl "oan and it will boost the project's visibility. After Karura, in parachain auction #1, BSX is the only project to reach more than 222,000 KSM loaned. (KILT nearly made it).
With a well-thought-out reward scheme and a relentless social media campaign, its team managed to win the hearts and minds of investors.
Basilisk provides AMM support for bootstrapping token liquidity and has close ties to HydraDX. As tokens mature, they can seamlessly profit from exposure to Hydra’s investor and liquidity base.
In a nutshell, Basilisk offers new projects a great way to distribute tokens with various mechanisms. This will allow new tokens to focus on their core competencies. Kusama alone is going to allow at least 92 more parachains as part of its mission to be the substrate of blockchains. This will likely create a lot of demand for Basilisk’s service and its BSX token.
Risk - Slithering down
LBPs are dutch auctions. The token price reduces as time progresses, if not all tokens are sold.
So the earliest bidders are the most likely to actually receive tokens, but are also the ones who pay the most for them.
LBP liquidity will be gradually released during week one, according to the documentation. If you are not one hundred percent bullish on BSX’s future, it might not make sense to be the first to bid.
Judging from Basilisk’s Discord, demand for tokens is high, as many who missed out on the crowdloan still want to get in. Like a sold out nightclub with a queue, a sold out crowdloan attracts many who still want a piece of the action.
Another unknown is how high demand for the advertised market-making services will be. With at least 92 more parachain auctions, some projects will likely choose BSX to handle token distribution and liquidity provision. But how many?
Nothing in this article constitutes professional and/or financial advice. The content is provided exclusively for informational and/or educational purposes. Nothing is to be construed as an offer or a recommendation to buy or sell any type of asset. Seek independent professional advice in regards to financial, tax, legal and other matters.