Hi there,
I’m excited to continue the deep dive into the BRCFi narrative and BRC20 tokens.
I think now, and during the following corrections, will be an excellent time to pick up some cheap BRC20 tokens with strong utility or meme fundamentals.
What I definitely do not want to do is instill FOMO. 😂
I don’t recommend buying many of the super popular BRC20 tokens right now, but wait until the hype has died down a little, and with that said. There’s a lot to unpack.
So, if you have no clue about BRC20 tokens, what tokens look promising, or how to buy them, I recommend you bookmark this page for future reference.
I believe that the best approach to understanding the BRCfi narrative is to do some due diligence on some significant projects that will likely withstand the test of time.
In my view, these are the projects that have a high probability of experiencing a surge in popularity during the next altcoin rally that may occur in 2025, similar to the one we saw in 2021. I’ll be buying them during the next capitulation event.
Enjoy!
Kierin
Follow me on twitter onchain_edge and join the onchain edge announcement group
Notable BRCFi Projects
Here are the three most notable BRCfi projects I’ll be accumulating. I’ll share with you the fundamentals behind the projects as well as the price points I’m willing to buy more. (trade setups below)
Some of them have already pumped since I shared this newsletter so be careful and don’t fomo.
ORDI ($1 billion mcap)
ORDI is one of the most significant BRC-20 tokens.
It's the first fungible token on the Bitcoin blockchain to use the new BRC-20 standard developed by Domo (similar to ERC-20 on Ethereum).
One of the unique aspects of ORDI is that it provides every Satoshi, the smallest Bitcoin unit, with a unique identity.
They become recognizable and traceable by attaching small bits of data to each Satoshi. This makes each Satoshi a non-fungible token, or NFT. Inscriptions cover text, images, audio, video, etc.
As we all know, the NFT hype was probably one of the best mainstream adoptions for the Ethereum blockchain. I think introducing this type of functionality to Bitcoin is revolutionary.
You can read more info and get the latest ORDI updates on CoinMarketCap and Ledger's explanation of BRC-20 tokens.
Update: The ORDI price went from $50 (when I sent out this newsletter to subscribers, all the way to $80.
Although I believe it can still rise, I see two opportunities to buy: Golden Pocket 1 around $41 and Golden Pocket 2 at $30.
MUBI Multibit ($220 million mcap)
MUBI (Multibit) is a dual-sided bridge for seamless BRC20 and ERC20 tokens.
This type of bridge improves the liquidity and accessibility for BRC and ERC20 tokens.
This is especially true for the BRC tokens, as many crypto investors still don’t know how to buy without going through an exchange.
Here is a diagram illustrating the BRC20 token bridging between BTC and ETH.
Here's a simplified explanation:
Users send their BRC-20 tokens (from the Bitcoin blockchain) to a shared account.
To move assets to Ethereum, the BRC-20 tokens are converted (or "minted") into ERC-20 tokens, which can be used on the Ethereum blockchain.
When moving assets back to Bitcoin, the ERC-20 tokens are turned back into BRC-20 tokens and sent to the user's Bitcoin address minus a small fee.
This allows users to use their Bitcoin-based tokens on Ethereum’s network and vice versa, linking the two separate blockchains in a simplified way.
MUBI is listed on exchanges like MEXC, Gate, and Bitmart, with a significant liquidity pool on Uniswap.
Trade setup
Here are the price points i’m looking at for $0.17 (golden pocket 1) and $0.12 (golden pocket 2). Not sure when it will be hit but that’s where I will place buy orders.
TRAC ($155 million mcap)
TRAC (Ordinals), not to be confused with OriginTrail, aims to decentralize the tracking of Ordinals on the Bitcoin blockchain.
Although other projects provide a similar service, the majority of them are centralized. TRAC aims to tackle this centralization issue by enabling anyone to join and earn from its decentralized network.
The team is developing a suite of products to support its ecosystem. TAC consists of:
Trac Core (organizes and provides access to Bitcoin data for analysis. It’s similar to an oracle like Chainlink.)
Tap Protocol (A protocol that allows for a high degree of programmability and flexibility on the Bitcoin blockchain)
Pipe (PIPE is a Bitcoin-native token protocol that combines the best features of RUNES and BRC-20, focusing on fair mints and avoiding the classification of tokens as securities. It includes a unique extension, PIPE Art, for creating NFT-like tokens and is part of the broader Trac Systems ecosystem.)
There’s much more to unpack with TRAC, but I would need to write a few more newsletters to cover everything.
TRAC is available on several cryptocurrency exchanges.
You can buy TRAC (Ordinals) directly through platforms like Gate.io and BitMart.
To buy TRAC, you will typically need to use Bitcoin (BTC) or Ethereum (ETH) and transfer it to the exchange that lists TRAC for trading. Remember to use a Taproot-compatible Bitcoin wallet to store your TRAC tokens securely.
CEX
DEX
Trade setup
I would like to be able to buy TRAC at around $3
When you begin exploring the world of BRCFi tokens, including the ones we discussed and others, you will realize that only a handful have solid foundational principles and a trustworthy team.
Most of these projects will probably become worthless, so always keep this in mind before investing your BTC bag into the latest BRC20 meme token.
Moreover, many of these tokens have poor liquidity, which is great when the tokens increase in value but can result in devastating losses when the market turns bearish.
Understand the Basics: Learn how BRC-20 works. Unlike ERC-20 tokens on Ethereum, BRC-20 tokens operate on the Bitcoin network using the Ordinals protocol. (You need a BRC20 wallet. Explained below)
Caution with Meme Coins: Meme coins can be fun but often lack inherent utility. Be cautious of hype-driven volatility and rugs.
Use Reliable Inscription Services: If you want to mint BRC-20 tokens, use trusted services like UniSat or Odinals Wallet to avoid rugs.
Network Congestion: It's important to remember that high transaction volumes can result in extremely high fees and delayed transactions. Please be mindful of network congestion issues, as Bitcoin is not optimized for handling a large number of transactions. If the network is congested, your transaction may not go through quickly enough.
How to get started buying BRC20 tokens
If you're looking to buy BRC-20 tokens, several exchanges and marketplaces are quite popular.
Here's a brief overview of some of the best places to buy and sell BRC-20 tokens:
ALEX: A decentralized exchange built on Stacks, a Bitcoin layer-2 protocol. ALEX offers to trade of BRC-20 tokens using sUSDT and features an order book DEX for instant trade confirmation. It supports over 20 BRC-20 tokens, including ORDI, PEPE, and NALS.
Binance: As a centralized crypto exchange, Binance listed the first BRC-20 token, ORDI, and offers trading pairs such as BTC, USDT, and TUSD. Binance marks innovative tokens with a seed tag, indicating higher volatility and risk.
Ordinals Wallet: A community-funded marketplace for buying and selling Bitcoin Ordinals and BRC-20 tokens. It features a wide range of BRC-20 tokens like SATS, WZRD, and OXBT.
ordinals wallet
Unisat: A decentralized exchange on the Bitcoin blockchain that supports trading of a vast array of BRC-20 tokens using the Xverse wallet. Unisat has listed over 10,000 BRC-20 tokens, including popular ones like ORDI and PEPE.
If you're interested in finding the available MUBI pairs, you can search for it and then click on "CEX markets". This will show you the different CEX exchanges where MUBI is available and their respective prices.
The best part is that you'll easily identify the cheapest exchange. Currently, MUBI is priced at $0.2331 on gate.io
Pro tip: take a closer look at the depth and volume of the token, as these factors can affect your slippage if you're looking to buy a large amount of MUBI.
Closing Thoughts
I don’t have much to say apart from enjoying Christmas, and I hope you enjoyed the BRCfi breakdown.
I’m thinking about setting something up so you can vote on upcoming newsletter topics. If you have a suggestion on an easy way to track votes please send me an email.
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Follow me on twitter onchain_edge and join the onchain edge announcement group
