COSS Promo Analysis: BWT, XNK and UFR

Hi all,

The BWT, XNK and UFR promo's are the first for which I have trading volumes for the entire duration of the promo. Thought it might be interesting to look at the performance of these trading promo's.

Trading Promo	Status	Start	End	Prize Pool
UFR-UPFIRING	Active	May 30	June 29	280000 UFR
XNK-INK PROTOCOL	Active	May 30	June 29	1000000 XNK
BWT-BITTWATT	Active	May 28	June 27	500000 BWT

Bittwatt (BWT) Promo

The Bittwatt Promo started on May 28 and ended on June 27. The Prize pool of the promo was 500k BWT, which was worth approx. $8900 at the start of the promo. At the end of the promo, this was worth $16,400, so almost a doubling compared to the start of the promo. Normally, we see a decline in price during a promo. BWT seems to be an exception.

In the graph below, a bar plot of daily BWT trading volume is shown. For the first 2-3 weeks, barely any BWT was traded. Near the end of the promo, volume picked up a bit, but in general, trading volumes were relatively low. Average daily volume during the promo was $59,845. The cumulative trading volume over the timeframe of the promo was $1,795,350. As the majority of the volume came from wash trading, fees are probably close to 0.04%. If we take an average trading fee of 0.05%, this promo resulted in approx. $900 in trading fees for both COSS and for in the FSA. If a new token doesn't do a promo, it normally has to pay a listing fee of about $25k. So it seems that in this case, the promo was a lot less profitable for COSS. However, we should also taken into account secondary effects of the trading promo, e.g. income due to new traders, withdrawal fees, etc. Furthermore, the USD $ worth of the prize pool was also relatively limited, hence less interest in this trading promo.

Ink Protocol (XNK) Promo

The Ink Protocol Promo started on May 30 and ended on June 29. The Prize pool of the promo was 1M XNK, which was worth approx. $36,419 at the start of the promo. At the end of the promo, this was worth $21,688, so a decline of approx. 40%.

Also here, a similar story: almost no trading in the first two weeks of the promo, and volume picked up in the last few days (up to $1.4M daily volume). Average daily volume during the promo was $207,557. The cumulative trading volume over the timeframe of the promo was $6,226,724. If we take an average trading fee of 0.05%, this promo resulted in approx. $3113 in trading fees for both COSS and for the FSA. This is already better than the BWT promo, but still nowhere near the listing fee.

Upfiring (UFR)

The Upfiring Promo started on May 30 and ended on June 29. The Prize pool of the promo was 280k UFR, which was worth approx. $51,245 at the start of the promo. At the end of the promo, this was worth $32,704, so a decline of about 40%.

Also here the same story, almost no trading up to the last week. Near the end of the promo, the volume peaked at almost 2M. Average daily volume during the promo was $246,006. The cumulative trading volume over the timeframe of the promo was $7,380,201. If we take an average trading fee of 0.05%, this promo resulted in approx. $3,690 in trading fees for both COSS and for the FSA.

Conclusions

In general, only in the last week of the trading promo's trading activity increased. This could raise the question if the duration of the promo's is not too long. Shortening the promo's by two weeks might result in similar cumulative trading volumes.

An overview of the performance of the three trading promo's is shown in the Table below. These promo's increased the average daily volume by $513,408. In total, $15,402,275 of extra trading volume was achieved due to the promo's. This resulted into $7,703 of revenue for COSS. This shows that these trading promo's don't really generate a lot of revenue for COSS. In the last column, the prize pool per $1M of trading volume is calculated. This way, the profitability of the different promo's can be compared. The UFR promo comes out on top, followed by XNK and BWT.

Trading Promo	Daily Avg.	Cumulative Vol.	Trading Fees	Prize Pool	Prize Pool per $1M Volume
UPFIRING	$246,006	$7,380,201	$3,690	$51,245	$6,944
INK PROTOCOL	$207,557	$6,226,724	$3,113	$36,419	$5,849
BITTWATT	$59,845	$1,795,350	$900	$8,900	$4,957
Total	$513,408	$15,402,275	$7,703	$96,564

Happy aCOSSmulation!

Double G