Tired Of Market Volatility? Discover An Investment Strategy For Risk Management With Seasonal Tokens

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A significant feature of cryptocurrency market dynamics is the seasonality caused by Bitcoin’s halving event, which occurs approximately every four years. After a halving, Bitcoin’s price typically peaks to an all-time high, initiating a bull market in the crypto space. This is usually followed by a bear market that can last over a year.

If other proof-of-work cryptocurrencies experienced their bull markets at different times, investors could potentially avoid Bitcoin’s bear market by reallocating their capital to these other cryptocurrencies when their bull markets begin.

This is precisely the concept behind Seasonal Tokens: four proof-of-work cryptocurrencies (Spring, Summer, Autumn and Winter) with halving events scheduled every nine months. This creates a cycle where their relative prices fluctuate in relation to one another.

Investors can shift their capital among these cryptocurrencies to take advantage of these price oscillations. By doing so, they can increase their total number of tokens and position themselves to profit when the general crypto market conditions become favorable.

On September 4, 2024, the mining supply of Winter tokens will be halved, completing a full cycle of halvings. Historical price charts demonstrate that the system is functioning as intended.

The Seasonal Tokens project is looking to harness the bullish momentum surrounding halvings across market cycles so investors can continue earning regardless of the season. Seasonal Tokens experience halving events every nine months. The project is gearing up for its next halving involving its Winter cryptocurrency, marking a major milestone as the four tokens will achieve their first full cycle since inception. 

Seasonal Tokens Mechanics

Seasonal Tokens is taking mining to a different level, offering investors an opportunity to capitalize on both the economics and the hype surrounding halving events into perpetuity. 

The idea is that investors trade their Seasonal Tokens at a specified frequency every nine months and continue to generate profits without having to continually dole out cash for more tokens. The token economics revolve around each token's production schedule and halving events.

Instead of Bitcoin's four-year cycle, each Seasonal coin's rate of production is cut in half every nine months, sending the coin that was previously produced at the fastest rate to the back of the line. This is scheduled in time, not in block numbers, to keep the token economics synchronized. As market forces adjust to the new supply/demand dynamic, the cheapest of the four Seasonal Tokens is catapulted to the front of the line, becoming the most expensive a few months after the mining supply is cut in half. 

Each of the four Seasonal Tokens – Spring, Summer, Autumn and Winter – rely on the proof-of-work (PoW) algorithm, like Bitcoin. PoW uses a fair amount of energy to solve a hard computational problem. Miners compete to find solutions to the proof of work, in exchange for which they are rewarded with more of the token they are mining.

However, unlike Bitcoin, the Seasonal Tokens run on the Ethereum blockchain, a more energy-efficient network that is also decentralized. As a result, miners participate in the creation of new Seasonal Tokens but they aren't involved in securing the Ethereum blockchain. Bitcoin miners, on the other hand, are rewarded for doing both – creating more Bitcoins and securing the Bitcoin blockchain.

Similar to Bitcoin, all four of the Seasonal Tokens are governed by a monetary policy that involves halving events, each one of which increases the scarcity of the Seasonal Tokens over time.

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Mining Economics 

The Seasonal Tokens rate of production in which new coins are created is also designed to evolve over time. Considering the project was only launched a few years ago, the four cryptocurrencies are in the early stages of production. This is reflected by an abundance of tokens alongside an expectation for lower prices.

However, as time goes on, say by years 10 to 14, Seasonal Tokens will be a much more mature project, at which time all four tokens will become scarcer, which could be reflected in a higher token price. So far, the Seasonal Tokens production rates and prices have both cycled around each other, demonstrating the relationship between them.

As these production and pricing cycles unfold, investors may find opportunities to profit through the trading of coins. As they trade pricier tokens for less expensive ones, they will bolster the number of tokens they hold in their portfolios without having to risk losing some of their token stash. 

Seasonal Tokens expects that the bottom price of each of the four cryptocurrencies – Spring, Summer, Autumn and Winter –  will double every three years alongside a declining supply if investors continue spending the same amount on coins over the years.

Currently, there are approximately 19 million Seasonal Tokens across all four seasons, or coins. Ultimately, the project is designed to mine 37 million tokens of each type. At the onset of the project, the Spring token had the fastest rate of production, and its supply was also the highest. But as the end of the project's first three-year cycle nears, the number of tokens produced for each season should be closer to equal. 

Seasonal Tokens Halving 

Following the upcoming Winter halving in September, new Winter tokens will be mined at a pace of 11.4 seconds per coin. That should make the Winter token the priciest of the four coins in the months ahead once the market has had a chance to adjust to the lower supply.

Currently, the pace of mining each of the four Seasonal Tokens is one day to produce 10,000 tokens. Over time, that time requirement will increase so that it eventually takes anywhere from 10 days to three years to mine the same 10,000 tokens. 

Based on these economics, interested investors could build a long-term investment strategy around the halving cycles of the Seasonal Tokens. For example: An investor can trade 10,000 expensive tokens for a larger number of cheaper tokens. The excess above 10,000 can be swapped for USDT or Wrapped BTC. The remaining 10,000 tokens as expected will eventually become the most expensive of the four, and the procedure can be repeated, potentially providing an ongoing income.  Seasonal Tokens will become more scarce over time, putting upward pressure on their price.

Ready to get the most out of Seasonal Tokens? Join their discord community here. 

 
Featured images from: welcome.seasonaltokens.org

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.