DeFi Tokens Assembled at MXC Exchange; Calculate the MX Market Value Mathematically

MXC Exchange, born in the bear market in 2018, has been at the forefront of exchange innovation and has continued to grow and develop to this day.

2020 was the year of DeFi. MXC Exchange took the lead in pulling the trigger. DeFi tokens got listed on the exchange one after another. Let’s review the DeFi projects that MXC recently listed and calculate the market value of MX (exchange token of MXC).

Content:

  • The development history of DeFi
  • Check out MXC first if you wanna trade DeFi tokens
  • MXC’s speed in capturing value
  • The value of MX
  • MX comprehensive mathematical calculation process
  • The $5M “MOASIS” program initiated by MXC
  • Summary

April to October 2020 was the first stage of the rapid development of DeFi. In November 2020, DeFi was in a state of volatility, but then it began to rise at the end of the month with a more obvious upward trend.

DeFi Pulse DeFi TVL statistics

We could see the clear upward trend based on the TVL chart made by DeFi Pulse.

It is worth noting that DeFi Pulse only reads data of the DeFi projects on the Ethereum main chain, whose lock-up volume reached US$40 billion in mid-February 2021. The data of other public chains and Ethereum side chains (such as BSC, Heco) are not included here.

On June 15, 2020, Compound launched liquidity mining of its governance token COMP. Then a series of decentralized exchanges launched their governance token such as BAL, UNI and SUSHI. What came after was the boom of derivatives including SNX, COVER and NXM. More recently, top exchanges built their public chain system compatible with Ethereum EVM. That is the brief development history of DeFi.

Although there are many DeFi projects, there are endless ways to play with DeFi. The next project came out before you even figured out the previous one. Some noticed that the gas fee is already way too expensive when they find out how to use Uniswap and not suitable for small funds.MXC understood such a pain point in the market and listed the DeFi tokens as soon as they were launched, so users have a more familiar way to invest.

Well-known DeFi projects such as YFI, YFII, BAL, MDX, bags, LHB, filda, can, helmet, cake, and badger are all listed first with MXC. Huobi, Binance, OKEx, and Coinbase will list them much more later. MXC has become the first stop to capture the value of new DeFi projects.

There have been many examples written by media agencies about the DeFi projects on the Ethereum main chain such as YFI, YFII, and BAL that have been listed on MXC. Let’s take a look at the situation of projects built on top of the public chains launched by the top three exchanges.

Due to the extremely high ETH gas fee, the cost of a common swap transaction on Uniswap or Sushiswap has soared to dozens of dollars. The cost of a CRV staking on the Curve official website has reached more than 100 dollars. And layer2 solutions are not mature enough. In this case, Binance launched the Binance Smart Chain, Huobi launched the Huobi ECO-Chain HECO, and OKEx launched OKChain. Therefore, the second half of DeFi, the combination of CeFi and DeFi, officially kicked off. MXC does not have a public chain for the platform for the time being, but it is very active in cooperation with the others. Some projects built on these public chains were listed on MXC first before getting listed on the exchanges that launched the chain. Thus, people are getting used to check out whether the token is available on MXC before they make a move.

I’ll use the example projects built on HECO to describe the value capture speed of MXC.

The Huobi ECO-Chain was officially launched on December 21, 2020, and it has existed for almost two months as of writing. According to statistics from DeFibox, the lock-up volume has reached approximately US$3 billion.

Among them, the decentralized exchange MDEX (MDX), lending protocols Lendhub (LHB), Channels (CAN), Filda, the algorithmic stable currency project Bags, etc. were all listed on MXC first. And MDX and Bags were listed on Huobi less than one week after.

Let’s take a look at MDEX, which currently has the largest lock-up volume in the Heco ecosystem. Its governance token MDX was launched on January 6, 2021, and MXC listed on January 19.

Any MXC user can easily buy MDX for about $1 back in that time. Today, the price has soared to $4.8 with an increase of over 400%.

Just one week after MXC liste MDX, Huobi officially launched MDX on January 26, 2021.

Bags is the first algorithmic stablecoin in the Heco ecosystem. MXC listed the token on January 6, 2021, and Huobi listed it a week after on January 13. This week’s interval was very critical because MXC users got a chance to buy bags under $100. The token soared to up to $1000 after its listing on Huobi.

LHB, Filda, and Can also have more than three times the increase after they were listed on MXC. In addition, projects on the exchange public chains such as Helmet, cake, burger, dego, etc. have also seen good gains after the MXC listing. These projects either have been listed on top exchanges or would be soon. We could spot the value capture ability and speed of MXC from these cases.

The value of exchange tokens comes from the value of the exchange platform and its own governance function.

MX comprehensive mathematical calculation process

Under the circumstances that DeFi tokens assembling at MXC, the average daily active users of MXC reached 100,000 (the highest daily active users reached 200,000), the community size has reached 500,000, the registered users exceeded 4 million, and the spot transaction volume reached approximately US$4 billion...

Source: Coingecko

The use cases of MX:

  1. MX holders will enjoy a 20% commission deduction when trading spots;
  2. Those who vote and renew of crypto assets on the Assessment Zone using MX can receive airdrop rewards of the projects;
  3. Get the qualification to participate in the lottery of SpaceM, and buy the token with a discount;
  4. Get extra tickets in the lottery of M-Day activities and get a chance to buy the token with a discount;
  5. Participate in MX DeFi staking and get corresponding mining asset rewards.

We can use the peer comparison method to evaluate an investment target, that is, compare other currencies on the same track.

According to Coingecko, the current daily trading volume of Binance (February 19, 2021) has reached $30.1 billion, and BNB’s market value is $37.7 billion, as shown in the figure below.

According to transaction volume comparison: 4 billion ÷ 25.8 billion = 15.5%

The core indicator of exchange is trading volume. If you compare it with trading volume, then the market value of MX should be calculated like this:

15.5% x 19.5 billion USD = 3.02 billion USD

This is the idealized market value estimate of MX as the MXC matcha platform currency. The actual situation will not be so high in the short term, but it can be used as a reference value for long-term expectations.

Let’s take a look at the current market value of MX.

According to transaction volume comparison: 4 billion/25.8 billion = 15.5%

The core indicator of exchange is trading volume. If you compare with trading volume, then the market value of MX should be calculated: 15.5% x 19.5 billion USD = 3.02 billion USD

This is the idealized market value estimate of MX. The actual market value will not be so high in the short term, but it can be used as a reference value for long-term expectations.

What is the current market cap of MX?

The market cap is about $94 million according to Coingecko.

To better calculate the circulating supply of MX, we’ll quote from the MXC official:

With an initial total supply of 1 billion MX, MXC exchange has been buyback MX using 100% of the trading fees earned on spots and ETF trading since July 2019. Apart from that, MXC took the advice from the community and initiated a vote to burn 240 million MX that was not circulating last year.

The total supply of MX for now is 608 million after the burning, of which the team locked 450 million as its treasury and EFT vesting of 306.9 million MX. The current circulating supply is 127.3 million.

Let’s calculate the market cap of MX at the price of US$0.738: US$0.738 * 127.3 million (circulating supply) = US$9394740.

The number matches with Coingecko stats, which also completes the two-way accounting verification.

According to the above calculation, the market value of MX’s $94 million is very small compared to the future space.

This is only a rough calculation, and BNB is also very strong as an exchange token. On the whole, the current market value of MX is relatively low.

According to the official announcement, MXC launched the “MOASIS” program, established a 5 million USDT special fund, and promoted multiple public chain project developers through Grant incentives to create more usage scenarios for MX and explore the possibility of integrating various asset ecology with MX. Starting at 16:00 on February 11, developers can register through the form in the announcement, and the shortlist will be announced before March 17. The shortlisted projects will receive a total of 5 million USDT prize pool ecological fund support, MXC comprehensive project support, and MXC matcha investment opportunities and online opportunities.

MXC covers a wide range of projects, and the purpose is to help developers to expand the use of MX tokens. Projects can be loans, derivatives, decentralized exchanges, insurance, aggregators, algorithmic stablecoins, NFTs, asset synthesis products, etc. The public chain can be ETH, TRON, NEO, EOS, Cosmos, Polkadot, and the exchange built pubic chains (Huobi ECO chain Heco, OKChain, Binance smart chain BSC), etc.; the role of MX in the project can be single currency staking, LP liquidity mining, spot trading, secured assets, IDO and many more.

To sum up, there is no public chain/track/MX scene limit.

MXC empowers developers with an open attitude, breaks through the barriers between DeFi and CeFi, and links crypto assets on different platforms and public chains. Eventually, realize the “OASIS” in the MX token ecosystem.

As for the estimation of the market capitalization of MX above, there is one point that cannot be ignored: Binance is currently the world’s largest exchange, it has its head effect and brand advantage. When the DeFi project gathers together on MXC, and its launch of the “MOASIS” program in a timely manner, the traffic and trading volume of MXCwill grow faster, which can offset a large part of Binance’s head effect and brand advantage gap.

MXCalso has a good performance in compliance. MXCcurrently holds five global financial licenses and is allowed to conduct digital asset-related businesses locally: Estonian MTR license, US MSB license, Australian compliance license, Canadian MSB license, and Switzerland Compliance license, actively developing its global business. Binance’s globalization is basically mature, here MXC has the growth brought about by the globalization dividend.

DeFi will continue to develop. The steep upward curve is currently not showing a smooth trend. New players are constantly emerging in the DeFi field, whether it is a new project on the Ethereum main chain or the DeFi project built on BSC, HECO or OKChain, most of them will be listed on MXC. The speed at which MXC captures value, and the “MOASIS” program will allow it to have sustained and rapid growth in traffic and trading volume and the value of the platform will increase accordingly. As the exchange token of MXC, the current market value of MX is likely to have been underestimated.

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